Codere’s Q4 and full 2022 results were shared along with the news that the CEO Moshe Edree had stepped down and was replaced by COO Aviv Sher.
Edree, who will continue to be part of the company as Executive Vice Chairman of the Board, led Codere Online in its first full year as a Nasdaq-listed company.
SBC Noticias spoke to Codere Online, which confirmed that the change comes after successfully completing the first year of operations on Nasdaq, while the move was “exclusively motivated by Edree’s personal decision” to work on a more strategic and corporate level.
SBC Noticias: Codere Online’s CEO change comes immediately after the 2022 financial results were released, where an increase in NGR was reported. Do you think the change in the company’s structure will influence the 2023 finances?
Codere Online: The CEO change comes after successfully completing our first year as a Nasdaq listed company, and is motivated solely by Moshe’s personal decision to separate himself from day-to-day operations and focus, as Executive Vice President of Council, in supporting a more strategic and corporate governance level.
He will continue to be fully linked to the company and advise his successor Aviv Sher in his new responsibilities. Therefore, the management won’t be interrupted and we don’t expect any impact at a financial level as a result of the change of command. However, it’s evident that in our plan for 2023, we have the challenge to not only increase revenues, but also reduce losses, in order to transition towards becoming a profitable company in 2024.
SBC Noticias: Will you recruit internally or externally to replace Sher as COO?
Codere Online: We have a large quantity and quality of internal talent at Codere Online, so the priority will always be to take advantage of it. However, his replacement as COO is still being analyzed and when the time comes, we will communicate who his successor will be.
SBC Noticias: Can you share what Aviv Sher’s pillars will be for Codere Online’s second year on Nasdaq?
Codere Online: As we mentioned before, the challenge for the company in 2023 is to begin to focus not only on growth but also on profitability and long-term sustainability of the business. After a very successful 2022 in terms of revenue growth (48% to €123m), the challenges and therefore the pillars of Aviv’s management will be related to this process and the search for a balance between growth, profitability, quality service to our customers and constant improvement of our product.
SBC Noticias: After the first full year of listing on Nasdaq, what are the general perceptions of Codere’s performance?
Codere Online: We are very satisfied with what we have achieved in this first year and with having exceeded the growth expectations we had set in the market.
It’s been a complex year in which the management team and employees have had to take on major changes, going from being a business unit within our parent company, Grupo Codere, to being an independent listed company. This has entailed innumerable changes, from corporate governance with our own board of directors, to managing all the requirements derived from being a public company, and all this without neglecting the most important thing, our operations, which have performed very well this year.
SBC Noticias: After any type of restructuring, stabilizing operations is usually a clear goal. Do you think you’ve accomplished this in 2022? Or are you still looking to establish a firm base to grow in the future?
Codere Online: The management team led by Moshe that worked on the online division of the Grupo Codere is practically the same as Codere Online’s business and training unit. It continues to lead the project, so we have not undergone any restructuring required to stabilize operations.
We completed the organizational and corporate changes needed to launch Codere Online on the stock market in 2021, so in this regard the transition has been smooth and we already had the right foundation for future growth.
SBC Noticias: In the last quarter of 2022, Codere Online had shared the expectations to achieve revenues of €110 to €120 million, so the final results ended up exceeding the expectations.
Apart from the exceptional performance from Mexico, what potential markets in which you do not operate or have recently started operations do you think can contribute positively to the 2023 financials?
Codere Online: After Mexico and Spain, which are the main markets today, our next big bet is Argentina, where we have been operating since December 2021 in the City of Buenos Aires. We’re currently moving forward to start operations in other provinces of the country and take advantage of the great opportunity that the market presents.
We have already taken a big step for the Codere brand by being the main sponsor of River Plate, and we continue to actively explore other opportunities. Beyond Argentina, Brazil is obviously the great opportunity for any online gaming operator, and we remain attentive to regulatory developments.