Codere Online revenue jumps 33% to €41.7m in first half

Net gaming revenue for the six months to 30 June amounted to €41.7m (£35.6m/$41.7m), up from €31.4m in the corresponding period last year.

Spain remained the primary source of income for Codere Online, with revenue here rising 19% year-on-year to €25.6m.

Codere Online also saw strong growth in Colombia, where revenue hiked 69% to €12.8m, though Mexico saw the highest increase as revenue jumped 134% to €2.2m, However, revenue in ither regions declined 25% from €1.3m to €1.0m.

The operator also noted a 64% increase in the average number of monthly active players, with this rising from 41,100 to 67,400 overall.

Average monthly active players in Spain increased 42% to 34,200, as well as 68% in Mexico to 17,100, 131% to 15,600 in Colombia and 174% to 6,000 in other regions.

For the second quarter, Codere Online saw similar trends, with revenue increased by 43% to €21.0m.

Spain led the way with €12.6m in revenue, up 23%, while Mexican revenue hiked 108% to €6.4m and Colombia revenue 181% to €1.4m, though revenue in other areas declined by 29% to €600,000.

In terms of average monthly active players, the total figure for the quarter was 66,700, up 142% on last year.

“Our second quarter results reflect the strong revenue trends in Spain and substantial growth achieved across Latin America, with a 43% year-on-year increase in our total net gaming revenue,” Codere Online managing director Moshe Edree said. “This performance was driven by a 142% increase in average active players in the second quarter.

“Beginning in the second quarter of 2021, we started to face the expected regulatory headwinds in the Spanish market that have limited our, and all online gaming operators’, ability to offer player bonuses and other marketing activities (advertising and sponsorships). Nonetheless, the company has adapted to this new environment and generated substantial revenue growth. 

“In Mexico, our second largest market, we more than doubled our net gaming revenues in Q2 2021, partially due to the impact from Covid on sporting events in Q2 2020, but also on the back of our differentiated omnichannel offering to our customers. 

“Additionally, since we migrated our Mexican online platform in early March, our systems are better prepared to manage the higher customer volume and will offer customers a better, more reliable, user experience.”

Edree also reference wider activities within Codere Online, with the business spinning off from Codere via an arrangement with special purpose acquisition company (SPAC) DD3 Acquisition Corp.

In June, it was announced that the boards of Codere and DD3 had approved plans for the spin off and for the new business to trade on the US Nasdaq stock market.

“We continue to expand our footprint across Latin America and are eager to deploy our comprehensive marketing strategy once the business combination with DD3 is completed,” Edree said.

“As part of this marketing strategy, we have already strengthened our presence in Latin America through alliances with key football teams in the region, like Rayados in Mexico and River Plate in Argentina, with whom we signed sponsorship agreements in July.”

Last month, it was announced that Codere’s restructuring deal – which will see creditors take control of the main business in a debt-for-equity agreement – is set to close on 5 November.

Because the restructuring deal involves changing the terms of Codere’s notes – so that noteholders will receive equity in Codere’s holding company rather than cash – it requires consent from those noteholders.

This will occur via a vote, with noteholders having until 18 October to provide their consent. 

Assuming the deal – which has already received support from the majority of creditors – is approved, it is set to come into force on 5 November.