Codere's Q3 net gaming revenue surges 41% to $47 million, propelled by strong momentum in Mexico

Multinational gaming company Codere saw its net gaming revenue (NGR) grow 41% to €43.2 million ($47 million) in the third quarter of 2023, with the core Mexico and Spain markets playing a pivotal role in driving this growth.

The company reported a break-even adjusted EBITDA for the quarter in comparison to a negative $12.8 million ($14 million) in Q3 of 2022, its first breakeven quarter some two years after listing in the US. Net loss narrowed significantly to €1.8 million ($2 million) in Q3 2023 from €11.6 million ($12.64 million) in the same period last year.

Revenue from Codere's Mexico operations accounted for €18.8 million ($20.53 million) where its net gaming revenue grew 63% to €21.0 million ($22.89 million) during the quarter. Spain reported revenue (and net gaming revenue) of €18.9 million ($20.60 million) in Q3, reflecting a 27% surge compared to the same quarter last year.

As per the company, 58% of its Q3 NGR was generated from casino operations and 42% came from sports betting. The monthly active user base grew 19% to about 124,000 during the quarter with Mexico leading the growth charts at 38%. Average monthly spend per active user was up 19% at $116 ($126.15).

As of September 30, 2023, the company holds a total cash position of €43 million ($46.87 million).

Codere has revised its full-year 2023 outlook, projecting net gaming revenue and adjusted EBITDA in the range of €155-165 million ($169-179.85 million) and negative €10-18 million ($10.90-19.62 million), respectively. With this new outlook, Codere is raising its forecast for the second successive quarter.

“We’re very pleased with our performance in the third quarter and to be presenting another set of impressive results. This quarter we not only posted significant net gaming revenue growth of 41% to €43 million, but also took a significant step in our path to profitability with break-even Adjusted EBITDA in the period. It was a solid quarter for sports betting, with the return of the major sporting events, but also for our casino product, which contributed 58% of our revenue in the period,” Aviv Sher, CEO of Codere Online, said.

“Mexico continued to exceed our expectations with revenue growth of 63% in the third quarter, reaching €21 million and consolidating its position as our largest market (by revenue) ahead of Spain, where net gaming revenue also grew by an impressive 27%, to €18.9 million,” he added.