Codere Online has delivered impressive financial results for the second quarter of 2024, reflecting a substantial growth trajectory across its operations.
Revenue and Profitability:
Codere Online’s total revenue for Q2 2024 reached €51.7 million ($56.1 million), marking a solid increase from previous periods. This positive trend is mirrored in the company’s net gaming revenue (NGR), which came in at €54.4 million—a 39% year-on-year growth. The company also reported a turnaround in its net income, showing a profit of €0.9 million compared to a loss of €3.7 million in Q2 2023.
Furthermore, adjusted EBITDA, a critical measure of operational performance, improved significantly. It swung from a loss of €4.5 million in Q2 2023 to a positive €1.3 million this quarter, showcasing effective cost management and operational efficiencies.
Year-to-Date Performance:
For the first half of 2024, Codere Online’s NGR totaled €107.4 million, reflecting a 37% year-on-year increase. Mexico was the leading contributor, accounting for 54% of the revenue, while Spain and ‘Other’ regions contributed 23% and 21%, respectively. Although the company is still reporting a net loss for the half-year period, it has narrowed it down to €0.2 million from €0.3 million in the previous year. Adjusted EBITDA for H1 2024 stands at €3 million, a significant improvement from the -€7.6 million reported in the same period last year.
Mexico:
Mexico emerged as the most significant revenue contributor, generating €28.2 million in NGR, which represents a remarkable 57% increase year-on-year. This growth is also reflected in the expanding player base, which rose by 25% to reach 62,300 monthly active players.
Spain:
Spain’s performance was equally strong, with NGR increasing by 25% to €21.8 million. Spain also surpassed Mexico in terms of player growth, with an increase of 26% to 51,500 average monthly active players.
‘Other’ Segment:
The ‘Other’ vertical reported an NGR of €4.4 million, up 22% from the previous year. However, the player base in this segment saw a decrease of 10%, bringing the number of average monthly active players to 31,800.
Management Changes:
During the quarter, Codere Online welcomed new directors Gabriel Saenz de Buruaga, Taavi Davies, and Claude Noesen. They succeeded Patrick Ramsey, Michal Elimelech, and Laurent Teitgen. Additionally, Codere Group CEO Gonzaga Higuero was reappointed, ensuring continuity in leadership.
Codere Cup:
Just after the end of Q2, Codere Online hosted the third edition of the Codere Cup in late July, a significant event for the company and its stakeholders.
CEO Aviv Sher’s Statement:
Codere Online CEO Aviv Sher expressed satisfaction with the company’s performance in Q2 2024, highlighting enhanced customer engagement and acquisition. He attributed these improvements partly to targeted marketing investments around major sports events such as the Eurocup and Copa America. Sher noted that the strong performance in the core Mexican and Spanish markets was a direct result of these strategic efforts.
CFO Oscar Iglesias’s Commentary:
CFO Oscar Iglesias shared his enthusiasm about the company’s positive adjusted EBITDA for the second consecutive quarter. Despite increased marketing expenditures around significant sports events, Iglesias reported a €1.3 million adjusted EBITDA for Q2 2024—nearly €6 million better than the previous year’s figure. For the year-to-date period, the company has achieved a €3.0 million adjusted EBITDA, underscoring a robust operational turnaround.
Codere Online’s Q2 2024 results reflect a robust performance characterized by substantial revenue growth, improved profitability, and a strengthened player base across its key markets. The strategic investments in marketing and management changes appear to have positioned the company well for continued success.