Codere Online CEO to step down
Moshe Edree to take up exec chair position as current COO Aviv Sher takes the top job
Codere Online has announced that CEO Moshe Edree will be stepping down from 1 March 2023 after nearly half a decade in the position.
Current Codere Online COO Aviv Sher will take on the role of CEO, with Edree staying at the firm as an executive vice chairman of the board.
Sher, who has been with Codere for just over a year, previously served as COO of NeoGames and TrendSpotting. He also spent time as EVP of Prime Gaming.
Regarding his departure as CEO, Edree stated: “I am very proud of what we have accomplished together in our first year as a public company, and I am grateful for the opportunity to have served as CEO during such a critical phase of expansion and growth.
“Aviv and I have been working together for over a decade and he has played a critical role in our success. I have full confidence in his leadership and his ability to build on our achievements, and take the company to even greater heights.”
Patrick Ramsey, chairman of Codere Online’s board of directors, added: “We are grateful to Moshe for his valuable contribution over these years. We look forward to continuing working with him in his new role while we welcome Aviv, and wish him the best in leading the company into the future.”
The move comes as the operator released its Q4 2022 and full-year results.
Total revenue was €35.6m (£31.2m) in Q4, with net gaming revenue (NGR) reaching €37.7m. Both these figures represent a 70% year-on-year (YoY) increase.
Breaking the revenue figure down by geography, Mexico recorded €14.5m in Q4, with NGR reaching €16.3m, which is more than double the figure posted in Q4 2021. In addition, average active players rose from 26,300 to 50,800 in Q4.
Spain’s revenue, including NGR, reached €17.8m, representing a 42% YoY increase for Codere Online. Monthly active players had a slight YoY increase of 8%, from 38,200 to 41,300.
Colombia’s NGR also increased, by 56% YoY, from €1.5m to €2.3m. Monthly players in Colombia rose by 48% YoY from 26,000 to 38,500.
In the quarter, the firm saw its marketing expenses more than double from €14.8m to €31.2m.
Platform and content costs were €9.3m, gaming and taxes accounted for €6.7m of expenses. There was also €5m in personnel and other expenses.
Overall, the net loss for the firm was €17.4m in Q4 2022.
In terms of full-year results, NGR was €122.9m, up 48% YoY. At the end of 2022, the firm’s total cash position was nearly €54m.
On the results, outgoing CEO Edree said: “We are reporting better than expected Q4 and full-year 2022 performance, with net gaming revenue growing by 70% in the quarter and reaching €123m for the full year. This success is a testament to our team’s dedication and focus on delivering an unparalleled online gaming experience for our customers.
“The World Cup undoubtedly played a significant role in keeping existing customers engaged but also attracting new customers during this quarter, in which we had 54% more active players than in the same period of 2021.”
As part of the results statement, Codere Online also confirmed that it has finalised its exit from the Italian market by completing the sale of its Italian subsidiary in December 2022.
Oscar Iglesias, CFO of Codere Online, added: “For 2023, we aim to generate between €140m-€150m of net gaming revenue while cutting our Adjusted EBITDA loss by half, to negative €20m-€30m, and expect to be EBITDA and cash flow positive (for the full year) in 2024.
“We continue to be very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress towards starting operations in several new regions this year. We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”