Codere Online reports financial results for the Q1 of 2024

Codere Online releases its Q1 2024 financial results. The total revenue was €50.4 mm in Q1 2024, while net gaming revenue was €53.0 mm in the period, 34% above Q1 2023.

Mexico revenue was €23.8 mm in Q1 2024, while net gaming revenue was €26.6 mm in the period, 51% above Q1 2023.Spain revenue (and net gaming revenue) reached €22.3 mm in Q1 2024, 21% above Q1 2023.Net income was €3.4 mm in Q1 2024 versus a net loss of €1.3 mm in Q1 2023.Total cash position of €38.5 mm as of March 31, 2024.Increasing full year 2024 net gaming revenue outlook to €195-210 mm and reiterating plan to be Adj. EBITDA and cash flow positive for the full year in 2024.

Madrid, Spain and Tel Aviv, Israel, May 15, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited financial results for the quarter ended March 31, 2024.

Below are the main financial and operating metrics of the period.

Aviv Sher, CEO of Codere Online, commented on the results:

We are off to a strong start in 2024, with net gaming revenue of €53 million in the first quarter, 34% above that of last year and once again our highest ever quarterly figure. Our focus on Mexico and Spain continues to yield impressive results, with net gaming revenue in Mexico growing by 51% in the first quarter to nearly €27 million. In Spain, meanwhile, net gaming revenue grew by 21% to over €22 million. In both markets, our targeted marketing efforts allowed us to grow our active customer base by c. 25% as a result of the acquisition of higher quality customers (i.e. lower churn) but also with an increased spend per active.

Oscar Iglesias, CFO of Codere Online, stated:

Once again, top line growth exceeded our expectations in the first quarter, with Mexico continuing to put distance on Spain as our largest market by revenue. We are particularly excited, however, to see Mexico now also contributing positive Adjusted EBITDA for the first time. This, together with a strong performance by Spain, allowed us to generate €1.7 million in total Adjusted EBITDA in the first quarter, which represents a significant step towards achieving our full year profitability targets.

Mr. Iglesias further added, “On the back of this strong performance in the first quarter and based on recent trading activity, we now expect to generate between €195-210 million of net gaming revenue in 2024, and reaffirm that we expect to generate positive Adjusted EBITDA and cash flow for the full year in 2024.”

Recent Events

Launch in Mendoza

Subject to obtaining final regulatory authorization, we expect to launch operations in the Province of Mendoza over the coming weeks.Mendoza is the 5th most populated province in Argentina with over 2 million people.This launch will further increase our presence in the country, where we started operations in the City of Buenos Aires in December 2021, and continue pursuing a license in the Province of Buenos Aires.

Rayados Renewal

On March 15, 2024, Codere Online agreed to extend its relationship with the Monterrey Rayados Football Club as its Official Betting Partner for the next four seasons.With this renewal, Codere Online also became the Main Sponsor of the women’s team, Rayadas.Codere Online expects to continue to deliver on its growth plan in Latin America, relying on this and other sponsorships and local activations.

Board Appointment

On April 9, 2024, the Board of Directors of Codere Online appointed Daniel Valdez as a member of the Board and the Audit Committee.Mr. Valdez previously served as a member of the Board between the consummation of the business combination in November 2021 and August 2023.

Reconciliation of Revenue (IFRS) to Net Gaming Revenue (non-IFRS)