Codere Online Closes 2023 with Record-Breaking Q4, Fueled by Mexican Market Growth
Codere Online concluded 2023 on a high note, achieving a 33% surge in net gaming income for the final quarter compared to the previous year. This impressive performance brought the annual total to €1.72 billion, marking a 40% leap from 2022.
Mexico emerged as a crucial factor in this triumph. The area witnessed a remarkable 54% upswing in net gaming income during Q4, reaching €25.1 million. This contributed to a 60% escalation in net gaming income for the entirety of the year, culminating in €81.7 million. Although Spain retained its position as the second-largest market, Mexico’s exceptional expansion highlights its growing significance for Codere Online.
Despite a minor decline in overall average monthly users for Q4, both Spain and Mexico registered increases, showcasing the company’s solidifying presence in these vital markets. Furthermore, the company substantially reduced its net loss for the quarter, a promising indicator as it pursues further growth.
Codere Online’s Chief Executive, Aviv Sher, declared a remarkable final quarter of 2023, exceeding previous records. Their net gaming income surged by a substantial 33%, reaching €50 million, even with the challenge of competing against the World Cup held during the same timeframe the prior year.
He credited this accomplishment to their targeted approach and resource allocation in crucial regions such as Mexico and Spain. These initiatives have yielded a considerable rise in engaged customers and their average expenditure, showcasing a robust return on their promotional endeavors. The casino sector continues to surpass projections, representing a significant 58% of their overall net gaming income for the second quarter in a row.
Further bolstering the positive outlook, Chief Financial Officer Oscar Iglesias conveyed strong assurance in attaining positive adjusted EBITDA and cash flow for the entirety of 2024. This confidence originates from their exceptional 2023 results. They anticipate net gaming revenue to fall between €185 million and €200 million in 2024.
Iglesias underscored their dedication to fulfilling the commitments made to stakeholders during their SPAC initial public offering, aiming for profitability within a three-year timeframe. He believes they are strategically situated to realize this objective and generate substantial value for their investors.
In a recent Huddle dialogue, Sher reviewed Codere Online’s path since becoming publicly traded. He emphasized their successful capital-raising endeavors, securing around $100 million through a Zoom funding round. He also stressed the company’s strategic concentration on primary markets like Spain and Mexico to propel sustained expansion.