FY24: Codere Online turns around losses to see revenue jump 23% to €211.6m

Key points:

– Codere Online saw net gaming revenue increase by 5% in Q4 and 23% in FY24

– The company has also seen positive net income and adjusted EBITDA results for the first time in years

– However, there is a potentially negative tax development in Colombia

Codere Online has published its financial results for the quarter and year ending 31 December, 2024.

The sports betting and casino platform operates in seven countries, Spain, Mexico, Italy, Argentina, Colombia, Panama and Uruguay.

Q4

Net gaming revenue during this final quarter grew by 5% to €52.6m ($55m) when compared to the same period last year, which was primarily driven by a 10% growth in Spain to €22.8m.

While Mexico stayed steady at €25.1m, Codere Online’s Other segment also grew by 10% for a total of €4.6m.

Interestingly, this wasn’t reflected neatly in the average monthly players, despite similarly positive results.

Spain saw a 3% increase in average monthly active players to a total of 487,000; Mexico jumped up 17% to 689,000 while the Other segment fell 9% to 298,000; this averaged out to a total 6% increase in players to a monthly average of 1.48 million.

The operator also managed to turn its -€1m net loss in Q3 into a €6.7m net income this quarter.

Similarly, the adjusted EBITDA went from -€4.1m last quarter to €1.9m in Q4.

Oscar Iglesias, Codere Online CFO, said: “Our strong fourth-quarter performance brought our full-year net gaming revenue to nearly €212m, 10% above the midpoint of our initial €185-200m outlook from early 2024.

“More importantly, we delivered a fourth consecutive quarter of positive Adjusted EBITDA, allowing us to reach €6.4m for the full year, at the higher end of our outlook of €2.5m-7.5m.

“For 2025, we anticipate net gaming revenue of €220m-230m and Adj. EBITDA of €10m-15m.”

FY24

When compared to the year before, the net gaming revenue for the year increased by 23% to €211.6m, which contrasting to the quarterly figures, was mostly driven by growth in Mexico.

Spain saw 16% growth in the full-year figures to €87.7m, the Other segment increased by 19% to €17.3m.

Mexico saw the largest change, growing 30% to €106.6m.

The average monthly players followed the trends a little closer than they did in the Q4 results.

In the FY24, Spain’s average monthly active players increased 17% compared to 2023’s figures to a total of 497,000; Mexico’s player base grew 23% to 644,000; while Other actually fell 8% to 308,000.

The total number of monthly players increased this year by 13% to 144.9 million.

The scale of Codere Online’s financial recovery is best witnessed in its FY24 section, which reveals a complete turnaround from a -€3.1m net loss in 2023 to €3.7m in net income this year.

Adjusted EBITDA went from -€11.7m to €6.4m, which was the higher end of the already-optimistic outlook for the year.

Q1 so far

On 12 February, the Nasdaq Hearings Panel granted Codere Online permission to continue its listing on the stock markets. 

Notably, the Colombian Ministry of Finance has introduced an executive decree which ads a 19% tax on all online deposits. At the time of writing, Codere has said it is “currently assessing how it will respond from a legal and operating perspective to this tax and potential impacts on its business in Colombia”.

Separate from Codere Online, Colombia is in a transitional period when it comes to gambling regulations – recently, the country began cracking down on illegal gambling as a way to recover lost revenue.