Codere Online reports €211.6M in revenue for 2024 driven by notable performance in Spain and Mexico

Codere Online has announced its financial results for 2024, reporting a total net gaming revenue of €211.6 million ($221.56 million), a 23% increase compared to the previous year. The company also posted adjusted EBITDA of €6.4 million ($6.7 million), marking an 18.1% improvement year-over-year.

CEO Aviv Sher highlighted the company's strong performance, particularly in Spain and Mexico, which remain its core markets. "We delivered another solid quarter, with net gaming revenue reaching €52.6 million ($55 million), a 5% increase compared to the fourth quarter of 2023," Sher said.

Codere Online’s Mexico segment saw full-year revenue increase by 30% to €106.6 million ($111.6 million). However, the fourth quarter saw stagnant revenue at €25.1 million, a result Sher attributed to the significant devaluation of the Mexican peso. He noted that on a constant currency basis, growth would have been 14% during the quarter.

Despite this temporary setback, Codere Online saw an opportunity as some European competitors struggled in the Mexican market. "I don’t know why, but I think some of the competitors have slowed down their investment a little bit in the fourth quarter, and we are enjoying it," Sher commented.

He added that European operators that entered the market may have shifted focus to other Latin American countries after failing to gain the expected traction in Mexico.

Looking forward, Sher expects renewed competition in Mexico as the 2026 FIFA World Cup approaches, potentially driving operators back into the market. He also noted that Codere Online had recently resolved technical issues related to its marketing investments, which should help the company maintain its competitive advantage in Mexico.

While Codere Online has established operations in Buenos Aires, its efforts to expand across other Argentine provinces have been hindered by a fragmented licensing system.

Sher explained that the company does not currently have access to other major provinces. "We made a lot of efforts, but we are not able, at the moment, to enter the province of Argentina where the majority of the money in the country is coming from and we are not able to grow our business there based only on the city," he said.

Codere Online remains hopeful that in the coming years, local operators may be open to selling their licenses, which could provide an opportunity for the company to expand its presence in Argentina.

Sher stated that Codere Online is prioritizing investment in its existing markets, particularly Spain and Mexico, rather than expanding into new regions. "The problem that we are facing right now is if I want to increase my marketing spend, our next dollar, in terms of ROI, should go into Mexico and Spain," he said.

As a result, the company has chosen not to enter markets like Chile or Peru at this time, believing that there is still significant room for growth in its established markets. Sher noted that the financial resources currently available are not enough to turn a new market into a major revenue driver.

Codere Online was granted an extension by Nasdaq to file its 2023 annual report, which must be submitted by May 12, 2025, in order to maintain its listing. The company is working toward compliance and expects to meet the deadline. Additionally, Codere Online has announced a share buyback plan of up to $5 million, which is subject to shareholder approval on March 3, 2025.

Codere Online projects net gaming revenue between €220 million ($230.3 million) and €230 million ($240.8 million) for 2025, with adjusted EBITDA expected to reach between €10 million ($10.4 million) and €15 million ($15.7 million).