The digital gaming landscape is witnessing a thrilling development, with Codere Online announcing an extraordinary revenue surge, buoyed by an exceptional performance in the Mexican market. The robust growth has triumphantly positioned Mexico as the powerhouse market for the operator following a momentous year.
A staggering 40% increase in full-year revenue, culminating in the record-breaking fourth-quarter net gaming revenue (NGR) of €50.1m, underscores the remarkable success story of Codere Online in 2023. This impressive total gracefully eclipses the operator’s forecasted revenue range of €140-€150m, setting a new benchmark for future endeavors.
Further easing investor concerns, adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) reported a loss of merely €12m. This figure is significantly lower than the anticipated €20-30m loss, reinforcing the financial stability and upward trajectory of the company.
Reflecting on prior achievements, Codere Online also exceeded expectations in 2022 when its NGR soared to €122.9m, indicating a 48% augmentation compared to the previous year. This consistent growth underlines the operator’s solid market strategies and operating prowess.
Now, shining a spotlight on the standout performer—Mexico. In 2023, the Mexican market witnessed a dramatic 54% year-on-year leap in Q4 NGR, amassing a monumental €25.1m. This surge propelled Mexico to the forefront as Codere Online’s largest market, with an annual revenue of €81.7m. The Spanish market, once the frontrunner, now trails behind despite recording an impressive 17% growth in Q4 NGR and a total revenue of €75.7m.
Codere Online’s CEO, Aviv Sher, attributes the company’s prosperity to strategic focus on key markets like Mexico and Spain. He highlights the notable return on marketing investments, along with substantial growth in both active customer base and per-customer spending. The online casino segment is also significantly outperforming expectations, contributing a staggering 58% of the total NGR for the latter part of the year.
Despite Colombia’s flat NGR performance in Q4, remaining at €2.3m, the financial year still saw an 8% uplift. Other regions, including Panama and Buenos Aires, Argentina, experienced a 54% jump in NGR to €6m. This is an optimistic sign, even as the average monthly player count in Q4 witnessed a 14% decline.
The company’s net loss for Q4 2023 is vastly diminished at €1m, a sharp contrast to the €17.4m in the same period last year. Consequently, the annual net loss shrank from €45.9m in FY2022 to a mere €3.1m, leaving Codere Online with a substantial €41m cash reserve as 2023 drew to a close.
Codere Online’s strategic movements date back to 2021, when it emerged as the first Latin American-facing iGaming operator to be listed on a U.S. stock exchange, staking its claim firmly in the growing LatAm market. With regulation on the horizon in markets like Peru and Chile, Codere Online is poised to leverage these opportunities. Peru’s attractive low tax rates make it particularly appealing, paving the way for robust expansion initiatives.
While Codere Online is expanding its Latin American horizons, Brazil’s impending regulated betting market does not feature in the company’s immediate plans due to cultural, linguistic differences, and the strong foothold of existing players in the unregulated market.
Heading into 2024, Codere Online sets its sights on an ambitious NGR target range of €185-€200m, along with the drive to achieve positive adjusted EBITDA and cash flow. Bolstered by efficient marketing strategies, Mexico and Spain remain focal points in their expansive vision, with Sher noting the remarkable 15% growth in active customers across these markets.
Backing Sher’s enthusiasm, CFO Oscar Iglesias reaffirms the company’s resolve to honor its commitment to profitability in the third year after de-SPAC, and more crucially, to create significant value for its shareholders.
As Codere Online continues its ascent, the gaming operator redefines the thresholds of digital success and investor confidence, setting an example for others in the industry to emulate.
