Operator News
Spain – Codere Online up 70 per cent in Q4 as Spain and Mexico surge
By Phil - 1 March 2023
Codere Online generated €35.6m in Q4 2022, while net gaming revenue was €37.7m in the period, in both cases 70 per cent above Q4 2021 to 2022 net gaming revenue reached €122.9 mm, 48 per cent above 2021.
Spain revenue reached €17.8m in Q4 2022, 42 per cent above Q4 2021.
Mexico revenue was €14.5m in Q4 2022, while net gaming revenue was €16.3m in the period, more than double that of Q4 2021.
Moshe Edree, CEO of Codere Online, stated: “We are reporting better than expected Q4 and full year 2022 performance, with net gaming revenue growing by 70 per cent in the quarter and reaching €123 mm for the full year. This success is a testament to our team’s dedication and focus on delivering an unparalleled online gaming experience for our customers. The World Cup undoubtedly played a significant role in keeping existing customers engaged but also attracting new customers during this quarter in which we had 54 per cent more active players than in the same period of 2021.”
Mr. Edree further added: “In Mexico, net gaming revenue more than doubled from the prior year quarter, and was over €50 mm for the full year. Meanwhile, in Spain, we achieved a significant 42 per cent growth in net gaming revenue, reflecting our unwavering commitment to this market and to providing best-in-class products and experiences to our customers. These achievements underscore the effectiveness of our growth strategy and our ability to successfully deploy marketing spend.”
Oscar Iglesias, CFO of Codere Online, stated: “We are pleased to have exceeded our 2022 net gaming revenue outlook of €115-120 mm and follow through on our commitment to investors in our first year as a public company. For 2023, we aim to generate between €140 to 150m of net gaming revenue while cutting our Adjusted EBITDA loss by half, to negative €20 to 30m, and expect to be EBITDA and cash flow positive (for the full year) in 2024. We continue to be very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress towards starting operations in several new regions this year. We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”
Moshe Edree will be stepping down from his position as CEO on March 1, but will continue to be involved in the company as Executive Vice Chairman of the Board;
The current COO, Aviv Sher, will be taking over as CEO, effective on the same date. Mr. Sher brings over 15 years of experience in the industry and has previously served as COO of NeoGames and CEO of Prime Gaming;
Regarding his departure as CEO, Mr. Edree stated: “I am very proud of what we have accomplished together in our first year as a public company, and I am grateful for the opportunity to have served as CEO during such a critical phase of expansion and growth. Aviv and I have been working together for over a decade and he has played a critical role in our success. I have full confidence in his leadership and his ability to build on our achievements, and take the company to even greater heights”;
Patrick Ramsey, Chairman of Codere Online’s Board of Directors, further added: “We are grateful to Moshe for his valuable contribution over these years. We look forward to continue working with him in his new role while we welcome Aviv and wish him the best leading the company into the future.”
The company said it expects to begin operations in the Province of Córdoba in 2023 and continue pursuing licenses in both the Provinces of Buenos Aires and Mendoza, where it recently participated in the tender process.
After evaluating a number of strategic alternatives with respect to its non-core Italian business, including a potential wind down of its operations, Codere Online completed the sale of its Italian subsidiary on December 30, 2022, thereby finalising its exit from the market.
