Codere Online has reported a 5% year-over-year increase in net gaming revenue for the fourth quarter of 2024 and by more than 20% over the full year.
The operator also stated that the Nasdaq Hearings Panel granted its request to continue its Nasdaq listing on 12 February. This is subject to the company filing its 2023 annual report on or before 12 May.
Speaking on Codere Online’s earnings call, CEO Aviv Sher said: “While this Nasdaq compliance issue has taken a lot more time and energy than we would have liked, we believe that things are moving in the right direction and currently expect to file our 2023 annual report within the extended deadline.”
Q4 described as ‘solid quarter’
Publishing its results, Codere Online reported that Q4 total revenue stood at €50m, while NGR came in at €52.6m, up 5% YoY (Q4 2023: €50.1m). 62% of the operator’s NGR during the quarter came from casino operations, while sports betting represented 38%.
Average monthly active players rose by 6% YoY in Q4 to 147,500 (Q4 2023: 139,200), with an average monthly spend per active of €119, which was in line with the same quarter the previous year.
Per segment, Spain revenue increased by 10% YoY to €22.8m (Q4 2023: €20.8m), while Mexico revenue remained flat at €25.1m. Other revenue rose by 10% to €4.6m (Q4 2023: €4.1m.
Q4’s Adjusted EBITDA was €1.9m (Q4 2023: minus €4.1m).
“We delivered another solid quarter, with net gaming revenue reaching €52.6m, a 5% increase compared to the fourth quarter of 2023,” commented Sher.
“In Mexico, net gaming revenue was flat at €25.1m, driven by the significant devaluation of the Mexican peso. On a constant currency basis, our growth in Mexico would have been 14%. Meanwhile, Spain continued to perform well, with net gaming revenue rising 10% to €22.8m.”
2024 results
For the full year, Codere Online stated that NGR increased by 23% YoY to €211.6m (2023: €171.9m). Average monthly active players grew by 13% to 144,900 (2023: 128,300).
2024’s adjusted EBITDA came in at €6.4m (2023: minus €11.7m).
“Our strong fourth-quarter performance brought our full-year net gaming revenue to nearly €212m, 10% above the midpoint of our initial €185m – €200m outlook from early 2024,” stated Oscar Iglesias, CFO of Codere Online.
“More importantly, we delivered a fourth consecutive quarter of positive adjusted EBITDA, allowing us to reach €6.4m for the full year, at the higher end of our outlook of €2.5m – €7.5m.”
In addition, the operator highlighted a new tax in Colombia, after the country’s Ministry of Finance introduced, via executive decree, a value added (indirect) tax of 19% on all online deposits. This tax is effective on 21 February and will remain in effect through 31 December 2025.
Codere Online noted that it expects “legal challenges from the industry with respect to its constitutionality” and that it is “currently assessing how it will respond from a legal and operating perspective to this tax and potential impacts on its business in Colombia”.
Outlook
Net income, excluding the non-cash variation in fair value of public warrants, was €6.8m in 2024 (2023: €4m net loss). As of 31 December 2024, the operator’s total cash position stood at €40.5m.
Looking ahead to 2025, Codere Online has stated that it expects NGR for the full year to be in the range of €220m to €230m and adjusted EBITDA to be in the range of €10m to €15m.
The operator’s board of directors has also authorised a share buyback plan, repurchasing up to $5m of the company’s ordinary shares over a one-year period. This plan is subject to shareholder approval in a general meeting on 3 March.
Iglesias added: “We are very encouraged by our 2024 results and our ability to meet our commitment to investors despite the headwinds faced, mostly on the currency front. For 2025, we anticipate net gaming revenue of €220m – €230m and Adj. EBITDA of €10m – €15m.
“Also, we are pleased to announce an up to $5m share buyback plan, subject to shareholder approval, which reflects our confidence in the business and future cash flow generation.”
