Codere Online has cited that its current trading outlook tracks its top-end expectations, following a significantly improved Q1 performance as group losses are lowered to €1.42m (Q12022: €12.28m).
Q1 trading saw the Nasdaq online gambling group generate corporate revenues in Q1 of $41.05m, up 57% on 2022 results of $26.2m.
Period trading saw the firm continue to benefit from its Mexican expansion, as the Codere.MX brand achieved $17.25m in revenues, up 75% on corresponding 2022 results of $9.72m.
In Spain, Codere achieved revenues of $20.09m in Q1 2023, a 40% increase from Q1 2022 – despite the relatively flat number of active customers compared to last year, indicating a “higher quality portfolio of customers.”
Group leadership underlined the firm’s ‘improved financial standing’ in which Codere Online maintains a total cash position of over $53.5m as of March 31, 2023. The firm’s Q1 results provided no details on EBITDA performance and costs.
“We are off to a very strong start in 2023, with net gaming revenue growing by 55% in the first quarter to nearly €40m ($43.67m),” said Aviv Sher, who provided his first financial statement as CEO of Codere Online.
“The significant investment that we made in the prior quarter around the World Cup allowed us to meaningfully grow our customer base versus pre-World Cup levels.”
In addition to strong revenue growth, the company also reported an increase in the average number of monthly active players in all regions, with Mexico witnessing a significant growth of 48%.
CFO Oscar Iglesias also commented on the company’s positive financial results: “We are excited to be presenting both strong top-line growth in the quarter and, more importantly, a significant improvement in Adjusted EBITDA.”
Looking ahead, Codere Online reiterated its outlook for 2023, expressing confidence in the company’s growth trajectory. The company plans to be EBITDA and cash flow positive for the full year in 2024.
“For the full year, we continue to expect to generate between €140-150m ($152.86-$163.77m) of net gaming revenue and Adjusted EBITDA of negative €20-30m ($21.84m-$32.75m), although given our strong performance in Q1, we now expect to be at the higher end of the range and are well on track to deliver positive EBITDA and cash flow for the full year in 2024,” added Iglesias.
