Key points:
- Codere Online reported Q3 2024 net gaming revenue of €51.7m, up 20% year-on-year, with Mexico and Spain driving growth
- Adjusted EBITDA reached €1.5m in Q3, marking three consecutive quarters of profitability
- The company is addressing a Nasdaq delisting notice and hopes to resolve regulatory issues soon
- Management expects the company to finish the year in the upper range of its financial guidance
Codere Online has released its preliminary financial results for the third quarter of 2024, demonstrating robust growth across key markets.
The company reported total net gaming revenue of €51.7m ($54.6m) for the quarter, representing a 20% increase compared to the same period in 2023.
This growth was primarily driven by strong performances in Mexico and Spain, the company's two primary markets.
Mexico emerged as a particularly impressive market, with net gaming revenue reaching €26.7m – a 27% year-on-year increase.
Despite challenges in this region – including a significant Mexican peso devaluation following the presidential election in June – the company noted that, in constant currency terms, the revenue growth would have been an even more substantial 43%.
Spain also contributed meaningfully to the company's performance, with net gaming revenue of €20.9m, an 11% increase from the previous year.
Codere Online’s financial health was assessed beyond just revenue metrics, with the company generating €1.5m in adjusted EBITDA during the quarter, marking its third consecutive quarter of positive financial performance. The total cash position stood at €44m as of 30 September 2024.
Beyond this, the company's player base also showed growth, with average monthly active players increasing to 143,400, a 15% rise compared to the same quarter in 2023.
Mexico and Spain both saw notable player growth of 23% and 18% respectively, further indicating the company's expanding market presence in these regions.
The quarter was not without challenges, however. On 12 November 2024, Codere Online received a delisting notice from Nasdaq due to a delayed Form 20-F filing for the year ended 31 December 2023.
Codere Online has responded by requesting a hearing, which is scheduled for 16 January 2025, and continues to work on completing the required filing.
Despite this, management remains optimistic about the full-year outlook. CEO Aviv Sher highlighted the company's strong results, while CFO Oscar Iglesias expressed confidence in finishing the year within the upper range of the company’s guidance, stating: "With regards to our existing outlook for 2024, we expect to finish the year in the upper part of the range with respect to both our net gaming revenue (€205m - €215m) and adjusted EBITDA guidance (positive €2.5m - €7.5m)."
In related news, Codere Online hosted the third edition of the Codere Cup in Mexico during the summer of this year – building on the success of previous tournaments in 2022 and 2023.
