Codere Online posts 5% Q4 revenue increase despite Mexican peso woes
Operator also says it is exploring “legal and operating” pathways following emergency 19% VAT on deposits being implemented in Colombia
Codere Online has reported a 5% year-on-year (YoY) jump in Q4 NGR to €52.6m (£43.6m) as bosses praised growth despite currency issues in Mexico.
NGR rose from €50.1m in Q4 2023, with growth in Spain and Codere Online’s other non-Mexican markets pushing the operator forwards.
In Spain, NGR moved up 10% from €20.8m to €22.8m, supported by a 3% YoY uptick in average monthly active players from 47,400 to 48,700.
In Codere Online’s other markets, NGR rose 10% from €4.2m to €4.6m, while actives declined 9% to 29,800.
In Mexico, where management said NGR remained flat due to the “significant devaluation” of the peso, the figure came in at €25.1m.
That was despite a 17% YoY surge in actives in the market from 59,100 to 68,900.
Adjusted EBITDA for the final three months of 2024 swung from a €4.1m loss to a €1.9m positive return.
On a full-year 2024 basis, NGR increased 23% from €171.9m to €211.6m, with Mexico a core growth driver pushing NGR up 30% to €106.6m.
Adjusted EBITDA for the full 12 months switched from a €11.7m loss in 2023 to a positive €6.4m last year.
Additionally, total actives across 2024 rose by 13% from 128,300 to 144,900.
In the results report, released today, 20 February, management also highlighted the new 19% VAT on deposits in Colombia that has been introduced via an emergency decree.
Codere Online said it is “currently assessing how it will respond from a legal and operating perspective to this tax and potential impacts on its business in Colombia”.
Earlier this week, US operator Rush Street Interactive said it would consider cutting operating expenditure and marketing spend to deal with the measure.
Elsewhere, the Codere Online board has approved a $5m share buyback scheme over a 12-month period, with the proposal subject to shareholder approval at a meeting next month.
The operator also remains embroiled in an ongoing compliance process with the Nasdaq over late filings for financial documents.
The stock exchange has granted the operator an extension to report its full 2023 filings on or before 12 May 2025.
Failure to do so could see the firm delisted from the Nasdaq.
Aviv Sher, Codere Online CEO, said: “We delivered another solid quarter, with net gaming revenue reaching €52.6m, a 5% increase compared to the fourth quarter of 2023.
“In Mexico, net gaming revenue was at €25.1m, driven by the significant devaluation of the Mexican peso.
“On a constant currency basis, our growth in Mexico would have been 14%. Meanwhile, Spain continued to perform well, with net gaming revenue rising 10% to €22.8m.”
Oscar Iglesias, Codere Online CFO, added: “We are very encouraged by our 2024 results and our ability to meet our commitment to investors despite the headwinds faced, mostly on the currency front.
“For 2025, we anticipate net gaming revenue of €220m to €230m and adjusted EBITDA of €10m to €15m.”
Codere Online’s shares are down 3.2% at the time of writing to $7.96 (£6.31).