Codere Online’s Q1 Performance Driven by Spain and Mexico

Codere Online has reported a strong performance in the first quarter of 2026, largely driven by the results from Spain and Mexico. CEO Aviv Sher expressed confidence in the company’s investment strategy during a conversation with iGB following the release of the earnings. He acknowledged that the operator's focused approach in these markets might be 'underestimated.' The company achieved record highs in both net gaming revenue (NGR) at €64.4 million and adjusted EBITDA at €6 million for the quarter. Growth was significantly influenced by a 13% increase in Mexico's NGR, reaching €34.6 million, and a 16% rise in Spain's NGR to €25.5 million. Instead of pursuing aggressive expansion like some rivals, Codere Online is concentrating its efforts on these two core markets. Sher indicated that the Q1 results serve as 'exactly the validation' to support their strategy, which is aimed at sustainable long-term growth. He stated, 'When we talk about investing our next dollar in Mexico and Spain, it’s because we believe those markets offer the best risk-adjusted returns for us right now,' emphasizing that they are building on existing scale and brand recognition. Sher stressed that disciplined investment in established markets often leads to underappreciated returns, allowing the company to generate growth without venturing into new regions. In Spain, the company’s recent performance reflects a recovery that started in the second half of 2025, driven by a supportive range of factors that facilitated double-digit revenue growth. Average monthly players rose to 59,000 in Q1, a 13% year-on-year increase, attributed to enhancements in the product line, customer experience, and brand relevance. The revised welcome bonus aimed at cross-selling sports betting and casino has been significant in attracting a high-value player segment, according to Sher. Regarding the competitive landscape in Spain, Codere Online's approach comes amid growing interest from other major players in the European market. Entain, for example, reported a boost in its performance due to recent executive changes and revitalized marketing for its Bwin brand, with CEO Stella David optimistic about its standings in Spain. Codere Online benefits too, as Spanish trade body JDigital noted there are no immediate plans for gambling tax increases; this contrasts with issues in markets like the UK and the Netherlands. Sher remains confident in Codere Online's competitive edge, highlighting that the Spanish market is highly regulated and rewards operators that excel in trust and retention over mere promotions. He noted competitors are adjusting strategies, but Codere’s priority is to enhance player experience and engagement. Looking ahead, the upcoming World Cup is anticipated to contribute positively to Codere Online's outcomes, with all five nations where the company operates set to participate. While exact revenue contributions from the tournament were not detailed, Sher foresees improved player acquisition and long-term engagement thanks to this major sporting event. He remarked, 'Major sporting events are among the most powerful customer acquisition moments in our industry, and the World Cup is the pinnacle of that,' highlighting that football's cultural significance in markets like Mexico and Spain could engage non-bettors and convert them into loyal customers. Sher concludes that they view the World Cup as an opportunity for not just short-term spikes in action but also for enhancing customer retention and lifetime value.