A significant contender in the digital gaming realm across Spain and Latin America, Codere Online, recently unveiled its financial performance for the first quarter of 2023. The firm experienced a remarkable 57% upswing in earnings compared to the corresponding timeframe last year, achieving a robust €37.6 million (equivalent to roughly $41.1 million). This expansion was propelled by a 55% leap in net gaming income, reaching €39.5 million. Their Mexican endeavors played a particularly noteworthy part, exhibiting a 75% revenue surge, hitting €17.6 million.
Notwithstanding these advancements, Codere Online did declare a net deficit of €1.3 million for Q1 2023. Nevertheless, this represents a substantial enhancement from the €10.1 million loss documented during the parallel period the previous year. The organization maintains a positive outlook and anticipates attaining EBITDA profitability by the conclusion of the financial year.
Aviv Sher, Chief Executive Officer of Codere Online, underscored the company’s strategic allocations, particularly those linked to the World Cup, which considerably broadened their clientele. This impetus persisted into the initial quarter, especially within their Spanish and Mexican territories. Sher also emphasized the effectiveness of their cross-selling strategies between sports wagering and casino offerings, with the latter contributing a significant 53% to their net gaming income.
Furthering these developments, Codere Online has also been bolstering its executive team under Sher’s leadership, with noteworthy designations such as Deborah Guivisdalsky assuming the position of Chief Operating Officer.
Prior to his role at Codere Online, Guivisdalsky cultivated his expertise as a High Roller Manager at Ladbrokes in Gibraltar.
Oscar Iglesias, Chief Financial Officer of Codere Online, expressed palpable excitement regarding their recent achievements: “We witnessed robust revenue expansion this quarter, and even more impressively, a substantial enhancement in our adjusted EBITDA.”
He elaborated, “This is primarily attributable to a calculated reduction in marketing expenditures this quarter, a crucial element of our strategy to generate sustainable expansion for our investors.”
Looking towards the future, Iglesias projected assurance: “We continue to anticipate net gaming revenue between €140 million and €150 million for the entire year, with adjusted EBITDA settling somewhere between negative €20 million and negative €30 million. Nevertheless, considering the exceptional commencement we’ve experienced in Q1, we now foresee concluding at the upper limit of that EBITDA spectrum. And gazing even further ahead, we are hopeful about attaining positive EBITDA and cash flow for the entirety of 2024.”
