Codere Online extends growth momentum with 20% net gaming revenue jump in Q3

Codere Online has posted €49.2 million ($51.9 million) in revenue for the third quarter of the year, with net gaming revenue at €51.7 million ($54.5 million), 20% above Q3 2023. Aviv Sher, CEO of Codere Online, hailed the three months as "another quarter of strong results" for the sports betting and online casino operator, which has now delivered three consecutive quarters of positive adjusted EBITDA.

The jump in revenue was driven by growth in core markets, particularly Mexico, which saw net gaming revenue jump 27% from the previous year to €26.7 million ($28.2 million) in 2024. Growth in this country came despite the significant devaluation of the Mexican peso following the presidential election in June. In constant currency terms, net gaming revenue in Mexico would have grown by 43%. 

Spain also delivered a solid Q3 performance, with revenue (and net gaming revenue) reaching €20.9 million ($22 million), 11% above the same quarter in 2023. Codere Online also posted a 24.2% rise in revenue from operations in other regions, with activity across Colombia, Panama, and Buenos Aires generating €4.1 million ($4.3 million).

Spending-wise, costs were higher almost across the board in Q3, with marketing remaining the largest outgoing at €22.4 million ($23.6 million), 13.7% above last year. However, revenue growth helped to offset this, turning a loss in 2023 to positive EBITDA in Q3 2024. As a result of the positive quarter, the firm expects to finish 2024 in the upper part of its full-year net gaming revenue and Adjusted EBITDA outlook.

Beyond the significant top-line growth, the company also generated €1.5 million ($1.5 million) of Adjusted EBITDA and €3.5 million ($3.7 million) of cash in the quarter. "This is now the third consecutive quarter of positive Adjusted EBITDA and brings the year-to-date total to €4.5 million ($4.7 million)," noted CFO Oscar Iglesias.

The positive quarterly results come as Codere Online grapples with a delisting notice from Nasdaq. In a letter earlier this month, the stock market notified the company that its securities would be delisted given it has not yet filed its Form 20-F for 2023. The operator formally requested Nasdaq a hearing to appeal the delisting determination.

In its quarterly update, Codere Online announced that Nasdaq accepted its request for a hearing, which is scheduled for January 16, 2025. "The company continues to work diligently to complete and file its Form 20-F for 2023 as soon as possible," Codere Online said in its Q3 report.