Codere Online reports financial results for the Q2 of 2024

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Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited financial results for the quarter ended June 30, 2024.

• Total revenue was €51.7 mm in Q2 2024, while net gaming revenue was €54.4 mm in the period, 39% above Q1 2023.
• Mexico revenue was €25.3 mm in Q2 2024, while net gaming revenue was €28.2 mm in the period, 57% above Q2 2023.
• Spain revenue (and net gaming revenue) reached €21.8 mm in Q2 2024, 25% above Q2 2023.
• Net income excluding the non-cash variation in fair value of public warrants was €5.5 mm in H1 2024 versus a net loss of €0.7 mm in H1 2023.
• Total cash position of €40.5 mm as of June 30, 2024.
• Increasing full year 2024 net gaming revenue outlook to €205 – 215 mm and Adj. EBITDA3 outlook to positive €2.5 – 7.5 mm.

Aviv Sher, CEO of Codere Online, commented on the results:

We are very pleased with our performance in the second quarter of 2024, with net gaming revenue of €54.4 million, a 39% increase over the prior year period. In the quarter we saw improved customer engagement and customer acquisitions in part due to targeted additional marketing investments made around certain major sports betting events (i.e. Eurocup and Copa America). As a result, performance in our core Mexican and Spanish businesses was strong (notwithstanding all the Spanish victories in the Eurocup), with net gaming revenue growing by 57% in the second quarter in Mexico to over €28 million and 25% in Spain to nearly €22 million.

Oscar Iglesias, CFO of Codere Online, stated:

We are pleased to have delivered positive Adjusted EBITDA for the second consecutive quarter despite the increased marketing spend around the Eurocup and Copa America. The €1.3 million in Adjusted EBITDA in the second quarter is nearly €6 million better than the prior year period and for the year-to-date period we have generated €3.0 million.

Mr. Iglesias further added:

Thanks to this solid performance in the first half of the year, we are well on track to meet the profitability and cash generation expectations we set out to achieve in the beginning of the year, while still delivering significant top line growth. As such, we are raising our outlook for the full year 2024 and now expect to generate between €205 – 215 million of net gaming revenue, which represents a growth of 22% year-on-year at the midpoint, and between €2.5 – 7.5 million of positive Adjusted EBITDA.

Recent Events

Board Changes

• In the AGM held on June 24, 2024, Mr. Gabriel Saenz de Buruaga, Mr. Taavi Davies and Mr. Claude Noesen were appointed as directors, succeeding Mr. Patrick Ramsey, Ms. Michal Elimelech, and Mr. Laurent Teitgen.
• Mr. Gonzaga Higuero, CEO of Codere Group, was re-appointed as director and named Chairman of the Board.

Research Coverage

• On July 11, 2024, Craig-Hallum Capital Group initiated coverage of Codere Online.
• For more information about research firms currently covering Codere Online please access the Analyst Coverage Coverage section of our website.