Codere Online CEO Aviv Sher has insisted the operator would be able to replicate the strategy that has brought success in Mexico to the rest of Latam, but it would need “a lot of money” for it work in Brazil.
In Mexico, the operator reported net gaming revenue (NGR) of €29m for Q2 2025, a 3% year-on-year (YoY) increase from €28.2m 12 months prior, while average monthly active players for the quarter spiked 36% YoY to 84,600.
Success in Mexico comes off the back of a blueprint that delivered for the operator in Spain, said Sher, with the CEO pointing out that Codere Online has proven it can take a model that works in one market and apply it to another.
In both Spain and Mexico, Codere Online has a strong retail presence which has allowed it to grow online thanks in part to an omnichannel strategy.
When asked during the operator’s post-Q2 earnings call as to whether the Mexican playbook can be applied elsewhere in Latam, Sher pointed out that the Brazilian market in particular would not only require considerable capital but a slightly different approach due to a lack of retail.
Sher said: “We do think that the playbook that we have can be applied. We actually took some of our experience in Spain and moved it to Mexico.
“We already have proven that we are able to replicate our strategy and grow the market. Of course, in order to execute such a strategy, you need a lot of money […] to replicate it in Brazil, you will need a lot of money.
“We do think that we can replicate it, but in order to replicate it now, not like five years ago when we started in Mexico, you need more money.
“The media prices are a bit higher than in the past and the competition is harsher. We do enjoy less competition in Mexico. It’s also true that the competition is not as strong, for example, like in Spain, so it also gives us some push over that.
“We have a local presence that also gives us a push. If we are talking about a new territory that we don’t have a retail presence [in], then maybe the test case will be a little bit different.”
Sticking with Mexico, Codere Online CFO Oscar Iglesias also commented on the operator’s strong retail presence in that market and said that in all jurisdictions where it can take advantage of an omnichannel strategy, it will do so.
He added that it benefits both the land-based operation and online business to “leverage opportunities” across multiple jurisdictions, especially where its retail presence is a “market leader”, like it is in Mexico.
He commented: “It’s been a while since we talked about the omnichannel opportunity, but we’ve never stopped. I wouldn’t say it’s the driver of our performance. I think the starting point, as Aviv said, is [Mexico is] still a developing market. It’s growing.
“I think every year we’re surprised that it’s still growing more than even more optimistic expectations. It’s a market we feel we feel like we’ve done the right things. We feel like we have a good model. But, yes, of course, we would always look for opportunities to replicate that elsewhere, and that’s some of the things that are under analysis.”
Financially, Codere Online posted NGR of €54.8m, a flat 1% year-on-year increase from the year prior, despite NGR falling 16% YoY in its “other markets” (outside of Spain and Mexico).
Spain NGR achieved minimal improvement, from €21.8m in Q2 2024 to €22.1m this time around.
However, NGR in Codere Online’s “other markets” slumped 16% YoY to €3.7m.
Spain’s average monthly active players fell 3% YoY to 49,700, while actives in its other markets slumped 35% YoY to 20,800.
For the six months ending June 30, total NGR grew 4% YoY to 111.8m, with 9% YoY growth in Mexico and flat growth in Spain. Average monthly active players for that same period increased 10% YoY to 158,200.
Iglesias commented that the operator is expecting to meet its NGR for FY 2025 of “€220m to €230m and adjusted EBITDA outlook of €10m to €15m”.
EGR recently spoke to Codere Online about regaining Nasdaq compliance and its plans for the remainder of 2025.
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Aviv Sher says the Spanish and Latam operator has a blueprint that can be reproduced in the regulated South American country, yet a lack of retail betting makes it a challenge
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