A leading online gaming company, Codere Online, with a strong presence in Spain and Latin America, recently announced its financial performance for the first three months of 2023. The firm experienced a substantial 57% increase in income compared to the corresponding period last year, reaching a robust €37.6 million (equivalent to about $41.1 million USD). This expansion was driven by an especially impressive performance in Mexico, where income soared by a remarkable 75%.
This encouraging update follows a dynamic beginning to the year for Codere Online, marked by strategic initiatives such as exiting the Cordoba market and obtaining an operational permit in Mendoza.
The organization also emphasized its strides toward profitability, disclosing a considerably diminished net deficit of €1.3 million for the first quarter of 2023, contrasting with a loss of €10.1 million in the parallel period the previous year. Codere Online’s Chief Executive Officer, Aviv Sher, conveyed optimism about attaining positive earnings before interest, taxes, depreciation, and amortization by the close of the fiscal year.
Sher ascribed the company’s robust results to various elements, including impactful promotional efforts during the World Cup, which attracted a surge of fresh patrons who have sustained their activity, notably in the crucial markets of Spain and Mexico. Furthermore, the company’s endeavors to motivate users to engage with both its sports wagering and digital casino offerings have proven successful, with the latter now representing a substantial 53% of Codere Online’s net gaming income.
This upward trajectory is further reinforced by a revitalized executive team, with Aviv Sher assuming leadership as CEO and the designation of Deborah Guivisdalsky as Chief Operating Officer, indicating a phase of vigorous growth and strategic development for Codere Online.
Prior to assuming a crucial position at Codere Online, Guivisdalsky cultivated his expertise at Ladbrokes in Gibraltar, spearheading their high-roller segment.
Oscar Iglesias, the Chief Financial Officer of Codere Online, conveyed his excitement: “We are delighted with the robust revenue expansion this quarter, and even more so with the substantial enhancement in adjusted EBITDA.”
He ascribed this triumph partially to a calculated reduction in marketing expenditures, stating, “This is integral to our strategy to propel sustainable expansion and furnish value to our stakeholders.”
Looking forward, Iglesias maintained a positive outlook: “For the complete year, we anticipate net gaming revenue to range between €140 million and €150 million, with adjusted EBITDA between negative €20 million and negative €30 million. Nevertheless, considering our strong initial quarter, we now project reaching the upper limits of that spectrum. We are also progressing towards attaining positive EBITDA and cash flow throughout 2024.”