Codere Online Q1 results showed an overall 8% increase in net revenue, up to €57 million. Despite currency swings, performance in Latin American markets, namely Mexico, Colombia, and Argentina, was strong. If discounting currency swings, revenue increased by 17%.
Mexico was the strongest market for the online casino and sports betting operator, showing a 15% increase YoY despite the Peso’s struggles. The increase would be 34% in constant currency, largely thanks to a 31% increase in monthly active players.
CEO Aviv Sher stated, “We are off to a good start in 2025, with net gaming revenue reaching €57.0 million in the first quarter, an 8% increase compared to the same period last year. In Mexico, net gaming revenue grew 15% to €30.5 million, despite the 16% devaluation of the Mexican peso. Meanwhile, net gaming revenue in Spain was slightly below last year’s at €21.9 million.”
Adjusted EBITDA improved slightly to €1.8 million from €1.7 million in Q1 2024, and the company maintains a strong cash position of €41.8 million at the end of the quarter. Despite this, rising operational costs led to a net loss of €0.7 million.
Codere on track for the year
The company increased its personnel and marketing spending by more than €2 million, and despite the loss, CFO Oscar Iglesias is confident it will meet targets for the year.
Iglesias commented on the company’s Q1 results, “Based on these results, we believe that we are on track to meet our net gaming revenue outlook of €220-230 million and Adj. EBITDA outlook of €10-15 million that we provided to investors earlier this year.”
While Mexico performed well, the company may be concerned by other markets. In Spain, revenue decreased 2% and although there was an increase across Panama, Argentina, and Colombia, active monthly players decreased by 11%.
The company’s increased spending requires these numbers to improve later in the year, particularly if the Peso continues to struggle. The company remains optimistic that the Q1 loss will be reversed and repurchased $0.5 million of shares under a $5.0 million share buyback plan.
Focus on core markets
The company’s stated mission “is to become the leading online gaming and sports betting operator in Latin America.” It also details its expansion plan for Latin America to include the recently regulated Brazilian market, as well as Chile, Peru, Puerto Rico, and Uruguay. The company also states it will “explore options to access the large US Hispanic market.”
CEO Sher, however, recently stated the company will not be entering Brazil for now due to cultural and linguistic differences, and believes a substantial investment would be needed to establish a presence in the country.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
