Codere Online experienced growth in revenue across all regions in the third quarter of 2024, with total net gaming revenue (NGR) for the operator increasing by 20% over the same period last year.
The company also updated its status regarding a delisting notice from the Nasdaq Stock Market received in November. A hearing request to appeal this decision was approved and is set for January next year.
Outlining its 2024 forecast, CFO Oscar Iglesias revealed that Codere Online aims to “end the year in the upper range” of its net gaming revenue and adjusted EBITDA guidance, estimated between €205m and €215m, and positive €2.5m to €7.5m respectively.
Mexico and Spain Fuel Q3 Revenue Surge
In its Q3 financial report, Codere Online noted a 20% rise in NGR to €51.7m (Q3 2023: €43.2m), attributed to increased revenue in both Spain and Mexico compared to the previous year. By segment, 58% of NGR was generated through casino operations, while 42% came from sports betting.
The average number of monthly active players grew by 15% year-over-year, amounting to about 143,400 (2023: around 124,500), and the average monthly spend per active player rose by 4% YoY to €120.
The operator also highlighted 232,000 new customer registrations during the quarter, with 67,000 making first-time deposits, reflecting a 29% conversion rate and an acquisition cost of €250 per new customer.
In Spain, NGR saw an 11% YoY uptick to €20.9m (2023: €18.9m), alongside an 18% rise in monthly active players to approximately 48,500 (2023: around 41,000).
In Mexico, NGR increased by 27% compared to last year, reaching €26.7m (2023: €21m), with a 23% growth in active monthly players to approximately 63,700 (2023: around 51,800).
Aviv Sher, CEO of Codere Online, pointed out that growth in Mexico was achieved despite currency fluctuations following the June presidential election.
Sher remarked: “Our performance this quarter was strong, with net gaming revenue totaling €51.7m, marking a 20% increase from the third quarter of 2023.
“In Mexico, despite the significant devaluation of the peso post-election, our net gaming revenue was €26.7m, 27% higher than last year. In constant currency, our NGR growth would have been 43%.
“Spain also showed robust results, with quarter NGR at €20.9 million, an 11% increase from last year.”
Other segments saw a 24% YoY NGR increase to €4.1m (2023: €3.3m), although active players per month slightly decreased by 2% to around 31,200 (2023: around 31,700).
Nasdaq Delisting Update
Codere Online updated stakeholders on its Nasdaq delisting notice.
On November 12, Nasdaq informed Codere Online of plans to delist its securities due to the Form 20-F for the fiscal year ending December 31, 2023, not being filed.
Subsequently, on November 18, the operator requested a hearing to challenge the delisting, which Nasdaq granted on November 25. This hearing is slated for January 16, 2025.
The company affirmed its dedication to promptly completing and filing the 2023 Form 20-F.
2024 Projections
Codere Online announced that for the year 2024 to date, its net income excluding non-cash public warrants adjustments stands at €2.8m, shifting from a €2.8m net loss in 2023. Its cash reserves are approximately €44m.
Furthermore, the firm achieved positive adjusted EBITDA in Q3 for the third consecutive period, amounting to €1.5m, due to increased revenue and efficient marketing spend. The company indicates it is “on track” to meet its 2024 profit goals.
Reiterating earlier statements, Iglesias highlighted expectations to finish 2024 “in the upper range” for both net gaming revenue and adjusted EBITDA, at €205m to €215m and positive €2.5m to €7.5m respectively.
The CFO stated: “Alongside considerable revenue growth, we also generated €1.5m of adjusted EBITDA and €3.5m of cash this quarter, marking the third consecutive quarter of positive adjusted EBITDA, bringing the year-to-date figure to €4.5m.
“Regarding our 2024 projections, we anticipate closing the year in the upper range for net gaming revenue and adjusted EBITDA guidance.”