Codere Online plans further Latam expansion following continued growth in the region
CEO Aviv Sher says operator is considering M&A opportunities after region posts net gaming revenue of €4.1m in Q3
Codere Online CEO Aviv Sher has said the operator is pursuing M&A opportunities as well as expansion into new markets.
The firm reported net gaming revenue (NGR) of €51.7m (£43m) for Q3 2024 and total revenue of €49.2m in its third quarter results published this week.
In Mexico and Spain, NGR rose to €24.2m and €20.9m, respectively.
The firm currently operates in Brazil, Mexico, Argentina, Colombia, Peru, Chile, Uruguay, Puerto Rico and Panama, with NGR across those regions reaching €4.1m.
In a post-results analyst call, Sher outlined potential plans to expand further in Latam, saying: “In general, we plan to expand whether it’s in other Latam markets or to find good use of our cash.
“One of the things that we are considering is some kind of M&A or entering a new market. We are definitely looking at it.
“There is nothing in the short term we can announce or share but, in the medium term, we will see how we use this cash in order to create some organic growth or maybe invest more in our current markets.”
While the plan is to expand, chief financial officer Oscar Iglesias noted that Codere Online will not change its approach and will remain “disciplined” after going public in 2021.
He explained: “The benefit of three years post de-SPAC, what we’re not going to change is our approach to capital allocation and being very disciplined and ensuring that any money we put to work has to compete, if not do be better than the return profile of the investments in Spain and Mexico.
“We’re always open to new opportunities. We’re analysing a number of different opportunities in existing and new markets. Ultimately, we’re not going to change our approach as it relates to disciplined capital allocation.”
Sher was also questioned about the possibility of renewing the operator’s licence in Colombia, which expires in November 2025.
Codere Online first entered Colombia in 2018 and is currently one of 15 operators live in the market.
As it stands, the firm pays statutory taxes of 15% of its NGR.
The CEO responded by saying the plan is to stay in the market for as long as “the terms allow it” and then consider what Colombia offers in terms of opportunities further down the line.
Sher said: “We look at all of our licences as assets and Colombia is one of them. It’s an asset, and we would like to maintain it at least until we are able to grow it.
“We didn’t talk about Colombia but we are seeing better results. It’s slightly better and a little bit of positive EBITDA.”
He added: “I don’t think we can disregard this market as it generates around €1m a month. If the terms allow it, and it’s not something crazy, we will renew the Colombian licence.
“Maybe in the future, the not so far medium term, we will look deeply into this market for more opportunities there.”