Codere Online reports 32% uptick in Q4 2023 revenue as NGR sees similar gains
Operator furthers its market gains in Mexico as revenue rises by 54% as operator plots Brazilian market entry in the near future
Codere Online has posted €46.9m (£40.1m) in total revenue for Q4, an increase of 32% year on year (YoY), as Spain and Mexico continued to perform well.
Net Gaming revenue (NGR) also saw a similar jump of 33% to €50.1m in Q4 2023 from €37.7m in the same period the year prior.
Adjusted EBITDA saw a colossal 72% increase in Q4, rising from negative €14.7m to negative €4.1m.
Mexico continued to be the standout performer for the operator, seeing a massive 54% rise in revenue to €25.1m.
There was also a significant increase in monthly active players in Mexico for Codere in Q4, rising by 16% YoY to 59,100.
In Spain during the period, NGR grew 17% to €20.8m, while average monthly active players rose 15% to 47,400.
Codere’s operations in Colombia were the only negative performer for the firm in Q4 with NGR remaining unchanged from Q4 2022 at €2.3m.
Monthly active players also dropped off by a substantial 41% YoY, from 38,500 to 23,000.
Overall, the firm’s monthly active player base fell 2% YoY for the period, down to 139,200 from 141,800.
Codere accompanied the Q4 update with the operator’s overall results for full-year (FY) 2023.
Total revenue increased 41% YoY from €115.7m to €162.6m, while NGR rose by a similar percentage, increasing 40% YoY to €171.9m.
Full-year adjusted EBITDA also increased by just under 40%, from negative €51.2m to negative €11.7m.
Average monthly active players increased for the firm across FY 2023, rising from 113,100 to 128,300, representing a 13% YoY increase, with Mexico the leading market with 37% growth in active players across the year.
Codere also provided an outlook for its FY 2024 performance, predicting NGR to land between €185m and €200m with positive adjusted EBITDA and cash flow.
On the results, Aviv Sher, CEO of Codere Online, said: “In Q4 2023, we delivered an impressive 33% growth in net gaming revenue to €50m, our highest ever quarterly figure, despite a tough comparison with the World Cup in the prior year period.
“Our strategic focus on Mexico and Spain, where we are seeing a strong return on marketing investment, has proven successful, with significant increases in both our active customer base and spend per customer. Casino continued to exceed our expectations with a second consecutive quarter contributing 58% of total net gaming revenue in the period.”
Oscar Iglesias, CFO of Codere Online, explained: “Our fourth quarter results have allowed us to reach nearly €172m of NGR for the full year, 19% above the midpoint of the initial €140m-€150m outlook we provided early last year. This outperformance, combined with the overall lower level of marketing investment, also allowed us to deliver a better than expected negative €12m in adjusted EBITDA versus the initial outlook of negative €20m-€30m.
“We are very encouraged by our performance in 2023, which further supports our expectation that we will generate positive adjusted EBITDA and cash flow for the full year in 2024, a year in which we expect net gaming revenue of €185m-€200m.
“In short, we expect to deliver upon our original commitment to investors to be a profitable company in the third year after de-SPAC and are more committed than ever to creating meaningful value for our shareholders,” Iglesias added.
Earlier this week, Sher revealed the operator will look to enter the Brazilian market when it regulates in the near future.