Codere Online changes CEO as 2022 losses reach $49m

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Codere Online has confirmed that CEO Moshe Edree has departed his role following the release of its Q4 and 2022 results

Edree has left his role as CEO but will remain at Codere Online as Executive Vice Chairman of the Board, whilst COO Aviv Sheer will step up to replace Edree in the top job as the firm enters its second full year as a listed company.

Commenting on his departure as CEO, Edree stated: “I am very proud of what we have accomplished together in our first year as a public company, and I am grateful for the opportunity to have served as CEO during such a critical phase of expansion and growth. Aviv and I have been working together for over a decade and he has played a critical role in our success. 

“I have full confidence in his leadership and his ability to build on our achievements, and take the company to even greater heights.”

Executive leadership changes came as Codere posted Q4 revenues of $36.3m, pushing full-year NGR to $136.6m – up 48% year-over-year. 

The majority of growth was found in the firm’s Latin American markets of Mexico and Colombia, which posted full-year NGR increases of 83% and 72%, respectively. 

Mexico contributed $54.5m in NGR during 2022 whilst Colombia delivered $8.4m to Codere Online’s topline performance. Mexico saw its Q4 revenues increase by 106%, primarily delivered by a strong trading performance during the FIFA World Cup

The Mexican unit almost doubled its player base in Q4, too, growing 93% as full-year active monthly payers reached 38.5 million – up 59% YoY. In Colombia, there was a similar story as active monthly players increased 43% YoY to 28.7 million. 

Despite top line growth and an increase in active players, Codere Online still posted losses of $49.0m in 2022, and $18.6m in Q4. 

Detailing key highlights of 2022, Edree stated: We are reporting better than expected Q4 and full year 2022 performance, with net gaming revenue growing by 70% in the quarter and reaching $131.2m for the full year. 

“This success is a testament to our team’s dedication and focus on delivering an unparalleled online gaming experience for our customers. The World Cup undoubtedly played a significant role in keeping existing customers engaged but also attracting new customers during this quarter in which we had 54% more active players than in the same period of 2021.”

Codere Online also offered a glimpse of its cash position, which was $57.6m as on Dec. 31, 2022. 

Finally, the firm offered guidance for its 2023 NGR and EBITDA, which it anticipates being $150-$160m and $20-$30m, respectively.

This will be boosted by its launch in the Argentinian province of Cordoba, which it expects to do this year as well as obtaining licensing in Buenos Aires and Mendoza.

Oscar Iglesias, CFO of Codere Online stated, “We are pleased to have exceeded our 2022 net gaming revenue outlook of €115-120m and follow through on our commitment to investors in our first year as a public company. For 2023, we aim to generate between €140-150 mm of net gaming revenue while cutting our Adjusted EBITDA loss by half, to negative €20-30 mm, and expect to be EBITDA and cash flow positive (for the full year) in 2024. 

“We continue to be very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress towards starting operations in several new regions this year. We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”