Codere Online expects third-quarter revenue growth, revenue decline
Codere Online's latest financial results for Q3 2023 show promising results and suggest that the multinational gaming and betting company is on the right track.
Codere Online, which went public on Nasdaq two years ago, reported third-quarter net gaming revenue (NGR) of $46.97 million. The company grew 41% compared to the previous year.
Growth was driven primarily by improvements in Mexico and Codere's native Spain. Mexico's NGR increased 63% to $22.56 million and Spain's NGR increased 27% to $20.17 million.
Codere Online's game revenue in the third quarter accounted for 58% of total revenue, a year-on-year increase of 5%. Sports betting contributed 42% of the total.
In Colombia, Codere Online's business is smaller, with games revenue of just $1.6 million, down 5% from last year.
The company did not provide specific figures for Argentina and Panama. They are classified in the "other" category and have an NGR value of $977,000.
Spend Smarter
While NGR increased in its two largest markets, the operator also saw an increase in player numbers. Mexico reported a 39% increase in average monthly player numbers over the previous month, while Spain saw a 16% increase.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) broke even and was neither negative nor positive. However, its adjusted EBITDA improved from -$13.67 million a year ago.
This is achieved by controlling spending, including marketing spend for Codere Online. The company spent $21.04 million on marketing in the quarter, compared with $25.96 million in the year-ago period.
Goals
The overall improvement makes Codere executives more optimistic about the future. They expect NGR this year could hit $179.4 million, compared with the company's previous forecast of $174.4 million.
Adjusted EBITDA is likely to be approximately -$10.9 million. Codere Online said in its latest update that the amount could be as high as $16.35 million. The company lost $25.42 million in 2021 and $54.7 million in 2022. Hitting the adjusted EBITDA target means the company has recovered 70% year over year.
Through September, Codere Online reported total NGR of $130.05 million, up 43% year over year. Adjusted EBITDA was -$8.13 million, a significant increase of 79.2%.
As a result, barring any surprises, Codere Online expects to "generate positive adjusted EBITDA and positive full-year cash flow through 2024," Chief Financial Officer Oscar Iglesias said.
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Source: www.casino.org
