Codere Online reported “better-than-expected” fourth quarter results and 2022 full year results despite negative cash flow.
Codere Online’s net gaming revenues (NGR), increased by 48% to EUR122.9m in full-year 2022. The company had negative cash flow of EUR46.0m, or PS40.8m/$49.1m.
Moshe Edree (outgoing CEO of Codere Online) stated that “we are reporting better-than expected Q4 performance and full year 2022 performance.” This success is testament to the dedication of our team and their focus on providing an unmatched online gaming experience for customers.
Edree, looking at the NGR, noted the “effectiveness and effectiveness of our growth strategy” as well as our ability to deploy marketing spend across Codere Online’s locations.
Today (1 March), Edree will resign as CEO. Current COO Aviv Sher takes over. Edree will continue to be an executive vice-chairman on the board.
Oscar Iglesias (CFO at Codere Online) said: “We are happy to have exceeded our 2022 net gambling revenue outlook of EUR115m – EUR120m, and continue to fulfill our commitment to investors.”
Numerous changes were made to Codere Online’s business structure in 2022. This included the sale of its Italian affiliate on 30 December 2022.
The proceeds of the sale were insignificant.
Fourth quarter
Codere Online’s fourth quarter results show that the company saw a 70% increase of NGR from EUR22.2m 2021 to EUR37.7m 2022. This was due to strong performances in Mexico, Spain and other countries.
However, the quarter’s net loss was EUR17.4m.
The quarter’s total revenue was EUR35.6m.
Marketing spending increased to EUR31.2m. This represents a significant increase of 111.2% over Q4 2021 when marketing spend was EUR14.8m.
Codere Online attributes its adjusted Q4 earnings (before interest, tax and depreciation) for 2022, which rose by 122.4% to EUR14.5m, to its increased marketing spending.
Results for the full year
Looking at the full-year results of Codere Online, a net loss was reported by Codere Online at EUR45.9m. This was 32.5% less than the EUR68.0m loss in 2021.
Marketing expenses increased by 78% in 2022, compared with the previous year. In 2022, it was EUR96.9m, compared to EUR54.4m 2021.
EBITDA in FY22 was EUR50.3m lower than the EUR23.8m loss in 2021.
Projections for 2023
Codere Online also offered projections for next year.
The NGR for the year will be between EUR140m-EUR150m. Adjusted EBITDA is expected to range between -EUR20m and -EUR30m.
According to the company, it plans to open operations in Cordoba in Argentina and continue to seek licences in Buenos Aires as well as Mendoza.
Iglesias stated that Codere Online was eager to establish a presence in Argentina.
He said, “We remain very excited about both the future and the possibilities that lie ahead, especially in Argentina, where significant progress has been made towards starting operations this year in several new areas.”
“We are confident that we can execute our plans and continue to deliver sustainable growth for shareholders.”
