Codere Online achieved positive adjusted Q3 EBITDA for the third quarter, boosted by a 19.7% year-on-year revenue growth driven by double-digit gains across its three main business segments.
Net gaming revenue at Codere Online for the three months ending 30 September reached €51.7 million. This marks an improvement from last year’s $43.2 million, but represents a 5% decline if to compare to €54.4 million in Q2 of this year.
Codere Online reported notable growth across all its regional markets, including Mexico, Spain, and other areas such as Colombia, Panama, and Buenos Aires, Argentina. Leading the charge was Mexico, with €26.7 million revenue, a 27.1% increase from the previous year. Additionally, the operator achieved a 23% year-on-year increase in average monthly active players, reaching 637,000.
Aviv Sher, the CEO, mentioned:
Our company delivered another quarter of strong results. In Mexico, net gaming revenue was above the prior year period, despite the significant devaluation of the Mexican peso following the presidential election in June. In constant currency terms, our net gaming revenue in the country would have grown by 43%.
In Spain, the Q3 revenue grew by 10.6%, reaching €20.9 million, driven by an 18.3% year-on-year increase in average monthly active players, which increased up to 485,000.
At the same time, the revenue from operations in other regions including Colombia, Panama, and Buenos Aires, was increased by 24.2% with generating €4.1 million during the quarter.
Net Loss Continues
Codere Online’s Q3 spending increased significantly, particularly in marketing, which reached €22.4 million, up 13.7% from the previous year. The revenue growth, contributed to a positive EBITDA of €1.4 million, reversing a €7.4 million loss from the previous year. Adjusted EBITDA also improved to €1.5 million, compared to breaking even in 2023.
The CFO, Oscar Iglesias, stated:
This marks the third straight quarter of positive adjusted EBITDA, with a year-to-date total of €4.5 million
Despite this progress, the company faced €2.1 million in income tax and €2.0 million in interest expenses. Including depreciation and amortization, the net loss for Q3 rose to €2.8 million, compared to €1.8 million last year.
Codere Online Looks to Achieve Top Range of Guidance
Codere Online reported a 30.6% increase in revenue for the first nine months of the year, reaching €159.1 million by the end of September. Despite rising costs in all areas, EBITDA turned positive at €3 million, so, it was recovered from a €15.4 million loss last year. Adjusted EBITDA also improved to €4.5 million, compared to a $7.6 million loss in 2023.
The company faced €3 million in income taxes and €5.8 million in warrants but offset this with €2.8 million in interest income, resulting in a net loss of €3 million, compared to €2.1 million in 2023.
With remaining optimistic, CFO Oscar Iglesias states that Codere Online is on track to achieve the upper end of its 2024 guidance range and is driven by strong Q3 performance and results from the previous quarters.
