Codre ‘s Q4 results and full HTML22 results were shared with the announcement that the CEO Moshe Eder had resigned and was being replaced by the COO Aviv Sher.
Edree will remain as Executive Vice Chairman and Board Member of the company. He led Codere Online’s first year as a Nasdaq listed company.
SBC Noticias talked to Codere Online. They confirmed that the change came after the completion of the first year on Nasdaq. However, the move was motivated “exclusively by Edree’s personal decision to work at a higher strategic and corporate level.”
SBC Noticias – Codere Online’s CEO changes occur immediately after the 2022 financial reports were published. This report showed an increase in NGR. Are you concerned about the impact of the structure change on the 2023 finances
Codere online: This CEO change is made after we have completed our first year as an Nasdaq-listed company. It was motivated by Moshe’s decision to step away from daily operations and instead, as Executive Vice President, of Council, to support a higher level of corporate governance and strategic planning.
He will remain fully connected to the company and assist his successor Aviv Sher with his new responsibilities. The management will not be affected by the move and we don’t anticipate any financial impact. It is clear that we face the challenge of increasing revenues and reducing losses in our 2023 plan. This will allow us to become a profitable company by 2024.
SBC Notes: Are you looking to hire internally or externally for Sher’s replacement as COO?
Codere Online – We have a lot of talent within Codere Online. It is our priority to make the most of this talent. We are still analyzing his replacement as COO and will inform you when it is time.
SBC Notes: Could you tell us what Aviv Sher’s pillars are for Codere Online’s second-year on Nasdaq’s?
Codere: The challenge for the company in 2023 will be to not only focus on growth, but also to ensure long-term profitability and sustainability. After a successful 2022, revenue growth of 48% to EUR123m, the challenge and therefore the pillars for Aviv’s management will relate to this process and the search to find a balance between growth and profitability, quality service to customers, and continuous improvement of our product.
SBC Notes: What are people’s perceptions of Codere after the first year of listing on Nasdaq?
Codere: We are extremely satisfied with the first year of operation and the fact that we exceeded our market growth expectations.
It has been a challenging year for the management team and employees. We went from being a business unit within Grupo Codere to becoming an independent listed company. It has required many changes. These include corporate governance with our own board, managing all the requirements of being a public company, as well as operations management, which has been very successful this year.
SBC Noticias – Stabilizing operations after any type of restructuring is often a clear goal. Are you confident that you will achieve this goal by 2022? Are you still trying to build a solid foundation for growth in the future?
Codere Online The management team that Moshe led on the Grupo Codere’s online division is almost identical to Codere Online’s business and training units. We have not had to undergo any restructuring to stabilize operations, as it continues to be the leader of the project.
We have completed all organizational and corporate changes required to launch Codere Online stock exchange in 2021. This has made the transition smoother and provided the foundation for future growth.
SBC Notes: Codere Online had expected to make revenues between EUR110 and EUR120 million in the third quarter of 2022. However, the final results exceeded the expectations.
Other than the outstanding performance of Mexico, which potential markets do you believe can positively contribute to 2023’s financials?
Codere: Argentina is our next major market after Spain and Mexico. We have been in Argentina since December 2021, in the City of Buenos Aires. We are currently looking to expand our operations into other parts of the country in order to take advantage of the tremendous opportunities that this market offers.
Already, we have made a significant step towards the Codere brand as the main sponsor for River Plate. We continue to explore other opportunities. We are also aware of regulatory developments in Brazil, which is clearly a great market for online gambling operators.
