Codere Online eyes Brazilian expansion when market regulates
CEO Aviv Sher says operator will seek separate capital and a different scale of investment as it eyes new jurisdiction
Codere Online will be looking to enter the Brazilian market when it regulates in the near future, according to the operator’s CEO Aviv Sher.
Speaking to EGR in December, Sher said the firm was not looking to enter Brazil “under the current company structure” and that the business was waiting to see what happens with the market.
Since then, Brazil has approved the regulation of online sports betting and igaming, with a 12% GGR tax rate.
However, speaking ahead of Codere’s Q4 and full-year 2023 results, to be published this week, Sher revealed the operator is looking to enter the Brazilian market when it opens, although cited the need for separate capital and investment to do so.
The CEO said: “Everyone is looking at Brazil, so are we. It’s a challenging market, it’s a different language for us and a different culture.
“We look at it the same way we look at the United States, as a new continent, not just a new jurisdiction.
“And we are looking at ways to enter this market and to be part of this huge new regulation that is opening.
“But, as I’ve said before, many times, we need separate capital and a different scale of investment. I think the process we’ve put in to grow Mexico and the same way we have done in Spain, we can facilitate in Brazil.
“This is important for us, we are already getting signals that they are looking for partners or big brands to merge with, so I think it will be an interesting year in Brazil.
“We are looking at other jurisdictions, the most probable one is Peru,” he added.
On the operator’s plans for the rest of the year, Sher said the firm was keen to invest further in both Mexico and Spain, to not only see further revenue growth but also gain a bigger share of the respective markets.
He explained: “In the last few months I have been having internal debates on whether we can invest more into our core markets and get more revenue in the near future, in 2025 and 2026.
“Currently we are not changing the guidance. We will still focus on EBITDA and growth together. We are still seeing growth in our revenue and it will be smart to continue invest mainly in Mexico and Spain in order to see more growth in revenue, maybe even take more market share and position ourself higher in the rank where we are at this moment.”