Codere Online Continues Positive Momentum, Showing Strong Gains in Q3 2023
Codere Online is seeing positive growth in different markets, according to its latest financial results for the third quarter of 2023. The multinational gambling and betting company reported promising results, indicating that it is on the right track in navigating changes in the industry.
The company, which went public on NASDAQ two years ago, reported a net gaming revenue (NGR) of $46.97 million for the third quarter, representing a 41% year-on-year increase. The growth was mainly driven by improvements in Mexico and Spain, with Mexico seeing a 63% increase and Spain a 27% increase in NGR.
However, there were some challenges in Colombia, where Codere Online has a smaller presence. The company’s gaming operations in the country only delivered $1.6 million, a 5% decline from the previous year.
In terms of revenue breakdown, the casino activity led the way, accounting for 58% of the total third-quarter revenue, followed by sports betting, which contributed 42% to the total.
The company also saw an increase in the number of players in its key markets, with Mexico reporting a 39% increase in average monthly players and Spain seeing a 16% boost.
Despite the challenges, Codere Online managed to achieve a breakeven point in its adjusted EBITDA, showing a significant improvement compared to the same period last year. This was made possible through controlled spending, including in marketing, where the company spent $21.04 million in the quarter, a reduction from the previous year.
Looking ahead, the company’s executives are optimistic about the future, expecting the NGR for the year to reach $179.4 million, higher than the previous forecast of $174.4 million. Adjusted EBITDA is also expected to improve, with the company aiming for around -$10.9 million, a recovery of 70% compared to last year.
Overall, Codere Online is showing positive momentum, reporting a 43% year-on-year improvement in total NGR and a significant 79.2% jump in adjusted EBITDA through September. The company is confident that it will generate positive adjusted EBITDA and cash flow for the full year in 2024, barring any unforeseen challenges.