Codere Online reported a rise in revenue in Q1, driven by double-digit growth in Mexico, despite currency devaluation. Efforts in Colombia were halted due to new gambling VAT. Net gaming revenue reached €57 million ($63.9 million) for the quarter, exceeding the previous year by 8%. Codere Online’s earnings report stated that Mexico and the “other” segment saw revenue growth, while Spain experienced a slight decline.
In Mexico, revenue increased by 15% despite currency devaluation, resulting in a €5 million impact on net gaming revenue. The company emphasized growth opportunities in Mexico, with a 31% rise in average monthly active customers. Codere Online is optimistic about future investments in Mexico.
Codere Online’s Expansion to Panama
Revenue in Spain decreased by 2% to €21.9 million, while the “other” segment, including LatAm markets, recorded a 10% revenue increase. The company faced challenges in Colombia due to new VAT rules, causing a slowdown in operations.
CEO Aviv Sher expressed confidence in Panama as a potential revenue source, aiming to offset losses from Colombia. CFO Oscar Iglesias mentioned ongoing adjustments to mitigate the impact of the tax on deposits in Colombia.
Operator’s Strategic Growth Plans
Codere Online plans to be cautious with its expansion plans, focusing on mitigating issues in Colombia. The upcoming football World Cup in Mexico presents a significant growth opportunity for the company.
Net Loss and Financial Outlook
In Q1, EBITDA increased by 44% to €1.3 million, while adjusted EBITDA rose by 6% to €1.8 million. However, the company reported a net loss of €0.7 million compared to a profit in the previous year. Codere Online aims for revenue between €220 million and €230 million for the full year, with adjusted EBITDA projected to be €10 million to €15 million.
Resolving Nasdaq Listing Issues
Codere Online addressed its Nasdaq listing concerns in the Q1 earnings report. After facing delisting threats, the company met the deadline for filing its annual report. Although another delisting notice is expected for a late report, Codere Online aims to resolve the issue promptly and regain compliance with Nasdaq listing requirements.
