Codere Online net gaming revenue jumps 39% in Q2, company raises 2024 outlook

Codere Online, an online gaming operator in Spain and Latin America, reported a significant rise in net gaming revenue for the second quarter of 2024, driven by strong performance in its core markets of Mexico and Spain.

The company posted total revenue of €51.7 million ($55.90 million) in Q2 2024, with net gaming revenue reaching €54.4 million, a 39% increase year-over-year. Revenue from Mexico stood at €25.3 million, while net gaming revenue in the country surged 57% to €28.2 million. In Spain, revenue hit €21.8 million, up 25% from the previous year.

"We are very pleased with our performance in the second quarter of 2024," said CEO Aviv Sher. "In the quarter we saw improved customer engagement and customer acquisitions in part due to targeted additional marketing investments made around certain major sports betting events like Eurocup and Copa America. As a result, performance in our core Mexican and Spanish businesses was strong."

The company's net income for the first half of 2024, excluding non-cash variation in fair value of public warrants, was €5.5 million, compared to a net loss of €0.7 million in the same period in 2023. Codere Online's cash position as of June 30 was €40.5 million.

"We are pleased to have delivered positive adjusted EBITDA for the second consecutive quarter despite the increased marketing spend around the Eurocup and Copa America," said CFO Oscar Iglesias. "The €1.3 million in adjusted EBITDA in the second quarter is nearly €6 million better than the prior year period and for the year-to-date period we have generated €3.0 million."

Due to its strong financial performance, Codere Online has raised its full-year 2024 outlook. The company now expects to generate between €205 million and €215 million in net gaming revenue, representing a growth of 22% year-over-year at the midpoint, and between €2.5 million and €7.5 million of positive adjusted EBITDA.

"Thanks to this solid performance in the first half of the year, we are well on track to meet the profitability and cash generation expectations we set out to achieve at the beginning of the year, while still delivering significant top-line growth," Iglesias added.

Operationally, Codere Online reported an average of 145,600 monthly active players in Q2, a 16% increase year-over-year. Spain saw a 26% rise in average monthly active players to 51,500, while Mexico's figure increased by 25% to 62,300.

Recent board changes included the appointments of Gabriel Saenz de Buruaga, Taavi Davies, and Claude Noesen as directors, succeeding Patrick Ramsey, Michal Elimelech, and Laurent Teitgen. Gonzaga Higuero, CEO of Codere Group, was re-appointed as director and named Chairman of the Board. Craig-Hallum Capital Group initiated research coverage of Codere Online on July 11, 2024.