Codere Mexico growth sees Q2 revenues improve

Codere has announced its Q2 results, declaring a considerable recovery in revenues compared to 2019 figures thanks to progress in Latin America.
Image: Shutterstock

Nueva Codere has announced its financial results for the second quarter of 2022, declaring a considerable recovery in revenues compared to figures reported before the pandemic took place, thanks to progress being made in Latin American markets.

Codere Online also highlighted gains for its operations in Latin America during the quarter, with its incomes in Mexico growing significantly year-over-year.

For Q2, Nueva Codere reported revenues of $316.8m, an 8.2% improvement on the previous quarter and a 91% recovery on the figures declared before the pandemic. As a result of this progress, the company expects to reach 2019 levels before the end of the year.

For Codere Online, its total revenue stood at $27.3m for Q2, a 36% gain YoY, while net gaming revenue came in at $29.1m, a 41% growth YoY.

The online gaming operator’s customer base also grew during the quarter by 29% to nearly 104,700 average monthly active customers, and almost 85,000 made deposits for the first time, 47% more than during the same period the previous year.

“We are very pleased with our results in the first half of the year, particularly with the acceleration in net gaming revenue growth to 41% in the second quarter,” commented Moshe Edree, CEO of Codere Online.

“This was driven by a very strong performance in Mexico, where net gaming revenue nearly doubled that of Q2 last year, as well as Spain, where net gaming revenue grew 12% in Q2 despite the significant marketing restrictions implemented starting in May last year.”

Strong Latin American performance helps Codere grow

Nueva Codere stated that its revenue grew during Q2 occurred thanks to a strong performance in Argentina, income for which hit $85.6m, “which strengthen the sustained growth in billing and the increase in spending per visit month after month”.

Its Mexico unit reported an income of $55.2m during the quarter, 34% higher than Q2 2021, but the operator noted its performance was affected by the market’s slow macro recovery and restrictions on commercial promotions.

Online, Mexico’s net gaming revenue increased by 85% YoY to $11.8m (2021: $6.3m), with average monthly active players rising by 45% in the market to 32,300 (2021: 22,300).

Meanwhile, Colombia’s operating income improved by 56% to $2.1m (2021: $1.4m) as its average monthly active users grew by 38% to 28,000 (2021: 20,300).

Codere Online also disclosed that, during Q2 trading, it was the victim of a “cyber-related fraud incident”, resulting in a €700,000 payment to “the bank account of a party who had impersonated one of Codere Online’s vendors”.

Following Q2’s end, Codere Online noted it had submitted all the required documents for an online gaming license application in the Argentinian province of Cordoba. A decision is expected to be made on its application by the government later this month.

Codere also further strengthened its relationship with Club Atlético River Plate, becoming the main sponsor of the soccer club with its logo appearing on the front of the shirt.

Adjusted EBITDA and full-year expectations

Nueva Codere’s adjusted EBITDA for the quarter was $47.6m “due to the strong growth of Argentina during this period and to a lower contribution from Mexico and Spain” as well as energy cost increases.

While Codere Online didn’t report an adjusted EBITDA figure for Q2, it did declare a net loss of $6.6m and a total cash position of nearly $88m.

Oscar Iglesias, CFO of Codere Online, stated that the operator expects full-year net gaming revenue to fall in the range of $109m to $119m. 

Iglesias said: “Our expectation that revenue growth would accelerate throughout this year has started to materialize, with the significant net gaming revenue uplift in the second quarter. We believe that we are on track to deliver our full-year net gaming revenue outlook of €110m – €120m as we continue executing our plan during the second half of the year.”