Madrid-headquatered gaming company, Codere Online has reported a 33. percent surge in its Q2 2023 Net Gaming Revenue (NGR), positive news for the gaming sector. The total NGR for the quarter reached €39.1 million, demonstrating Codere Online’s dominance in the industry.
Breaking Down the Winnings: Net Gaming Revenue
Codere Online’s triumphant quarter can be analysed by revenue breakdown. A staggering €18 million of the total NGR poured in from the Mexico, a remarkable 51.3 percent year-on-year growth. Meanwhile, the Spanish market contributed €17.5 million, marking a solid 24.1 percent boost. However, Colombia posted €2.1 million, witnessing a slight dip of 4.5 percent compared to the previous year.
The other markets delivered €1.4 million. This lesser-known segment managed to defy the odds, showcasing an impressive 40 percent growth, a leap forward from the €1 million posted last year for the same quarter.
Changes in Q2 gaming revenue year-on-year 2022-2023,.(Source: SiGMA)
Online Casino vs. Sports Betting
Online casino operations emerged as the leaders, with 54 percent of the total revenue during the quarter. The remaining 46 percent was fiercely contested by online sports betting, proving that Codere Online’s diversified approach is a winning formula.
Growth in active players
The growth was fueled by an increase in the average monthly active players (MAPs) across most of Codere Online’s active markets. In Mexico, MAPs surged an impressive 53.9 percent, reflecting a jump from 32,300 active players to an impressive 49,700. Meanwhile, Spain witnessed a 10.6 percent climb, with MAPs escalating from 36,800 to 40,700.
Colombia, though facing a slight revenue drop, is still pushing forward. But there was a 6.1 percent reduction in the number of MAPs in that market from 28,000 to 26,300.
However the markets unexpectedly surprised everyone, with a buoyant 19.7 percent growth in the number of MAPs, leaping from 7,600 to 9,100.
Emerging from the shadows
The quarter’s climax saw Codere Online emerging from the shadows of financial adversity. With an adjusted EBITDA loss of €4.5 million, down by over 50 percent from a €9.9 million loss in Q2 2022, the company seems poised for a comeback. The quarter concluded with a net loss of €1.7 million, compared to €6.7 million net loss in Q2 2022.
Analysts’ forecast
In the upcoming quarter, analysts forecast that Codere Online is anticipating sales of €34.45 million, with a projected range spanning from €32.50 million to €36.00 million. Over the past year, Codere has consistently exceeded its sales projections, outperforming by 66.6 percent.This achievement stands in contrast to the industry average, which saw companies surpassing their sales forecasts 59.05 percent during the same period. In the last quarter Codere has demonstrated remarkable performance, consistently outperforming its industry peers in terms of sales.
Looking forward
Codere Online has risen to the challenge and revised its earnings guidance for full-year 2023. The NGR is now projected to reach a €150 million to €160 million, with an expected adjusted EBITDA loss ranging from €15 million to €25 million.
The industry is now awaiting further good news, as Codere Online reaffirms its commitment to achieving EBITDA profitability and positive cash flow for the full-year 2024.
Codere Online CFO, Oscar Iglesias, pictured above, summed it up perfectly, stating, “We continue delivering strong revenue growth, despite a lower level of marketing investment, on the back of strong brand recognition, higher quality customers, and continued improvement in our product offering.”
In the stock markets, Codere Online Luxembourg, S.A. (CDRO) is trading at $3.09 (down by -1.43 percent).
