Codere Online, a prominent operator in the gaming industry, has released its preliminary unaudited financial results for the first quarter ending March 31, 2024. The quarter marked significant milestones for the company, with robust growth in total revenue and net gaming revenue, particularly fueled by the performance in key markets such as Mexico and Spain.
Financial Highlights:
Codere Online reported a total revenue of €50.4 million for the first quarter of 2024. Notably, net gaming revenue soared to €53 million ($57.58 million), marking an impressive 34% year-on-year increase. This surge in revenue reflects the company’s strong market presence and effective operational strategies.
Market Performance:
The first quarter showcased exceptional performance in key markets, with Mexico and Spain emerging as pivotal contributors to Codere Online’s revenue stream. Revenue from Mexico surged to €23.8 million, while Spain’s revenue reached €22.3 million. This underscores the efficacy of targeted marketing initiatives and underscores the company’s commitment to nurturing its customer base.
Operational Success:
Codere Online’s CEO, Aviv Sher, attributed the stellar performance to a focused approach on key markets and customer acquisition strategies. He highlighted the remarkable growth in active customer base, with a notable increase of approximately 25% driven by the acquisition of higher quality customers and increased spend per active customer.
Financial Transformation:
The company’s CFO, Oscar Iglesias, emphasized the financial transformation witnessed in the first quarter. Despite challenges, Codere Online managed to achieve a net income of €3.4 million, marking a significant turnaround from a net loss of €1.3 million in the corresponding period of 2023. This reflects the resilience and adaptability of the company in navigating market dynamics.
Profitability Outlook:
Of particular significance is the achievement of positive adjusted EBITDA in Mexico for the first time, signaling a pivotal moment for the company’s profitability trajectory. With a total adjusted EBITDA of €1.7 million in the first quarter, Codere Online is well-positioned to pursue its full-year profitability targets. This underscores the efficacy of strategic initiatives and operational efficiency measures implemented by the management.
Codere Online’s Q1 2024 financial performance reflects a resilient growth trajectory amidst evolving market dynamics. The company’s strategic focus on key markets, coupled with targeted customer acquisition efforts, has yielded remarkable results. With a solid foundation laid in the first quarter, Codere Online is poised to leverage its strengths and capitalize on emerging opportunities, driving sustainable growth and value creation in the gaming industry landscape.