Codere Online experienced a strong second quarter in 2023, according to their recently released financial results. Their overall earnings hit €37 million (approximately $40 million), a significant 35% surge compared to the corresponding period the previous year. This robust expansion was driven by a 34% rise in their gambling revenue, which reached €39.1 million.
The Mexican market has emerged as a standout performer for Codere, becoming their most rapidly expanding and largest market. Chief Executive Officer Aviv Sher conveyed his contentment with the company’s achievements, emphasizing the sustained growth trajectory from the initial quarter. Despite a predictable seasonal decline in sports wagering, their gambling revenue remained resilient, equaling the impressive figures of the first quarter. Sher underscored their strategic emphasis on casino offerings, which now constitute a substantial 54% of their total earnings.
Spain also demonstrated commendable results, with both overall and gambling revenue climbing by 24%. This translated to €17.5 million in revenue for the second quarter of 2023. In summary, Codere Online appears to be executing effectively, with their strategic concentration on casino products and their robust performance in key regions like Mexico and Spain.
The Mexican market is flourishing, witnessing a revenue surge of 58%, reaching €16.2 million. This remarkable upswing was driven by a 51% increase in online gaming proceeds, hitting €18 million.
Conversely, Colombia paints a different scenario. Although income experienced a commendable rise of 35%, reaching €2.3 million, online gaming proceeds actually contracted by 5%, settling at €2.1 million.
These statistics underscore the volatile nature of the Latin American gaming sector, with Mexico emerging as a clear leader.
Codere Online’s Chief Financial Officer, Oscar Iglesias, attributed the company’s achievements to “robust brand awareness, an enhanced clientele, and ongoing improvements to our product portfolio.” He further stressed that these elements enabled Codere to attain strong income expansion despite curtailing marketing expenditures.
This positive trajectory is mirrored in the company’s modified EBITDA, with Q2 deficits shrinking by over half to €4.5 million. Looking forward, Codere Online is surpassing projections and has elevated its online gaming revenue forecasts for 2023 to a span of €150 million to €160 million, a 7% jump from prior estimates.
Regarding management, Codere Online recently designated Michal Elimelech to its board, succeeding Iglesias, who will remain in his position as CFO. Furthermore, Gonzaga Higuero has been named the Chief Executive Officer of the Codere Group.