Codere Online Reports Financial Results for the First Quarter 2025
- Net gaming revenue grew 8% YoY to €57.0 million (17% in constant currency)
- Mexico's net gaming revenue increased 15% to €30.5 million despite peso devaluation
- Monthly active players grew 13% YoY to 161,300
- Company maintains positive 2025 outlook of €220-230 million in net gaming revenue
- Implemented $5.0 million share buyback program showing confidence in company value
- Net loss of €0.7 million compared to €3.4 million profit in Q1 2024
- Spain's net gaming revenue declined 2% to €21.9 million
- Risk of Nasdaq delisting due to delayed 2024 annual report filing
- Other regions showed 11% decline in monthly active players
Insights
Codere Online posts mixed Q1 results with revenue growth but swings to loss; Mexico excels despite currency headwinds.
Codere Online has delivered a mixed financial performance in Q1 2025, with some encouraging growth metrics alongside profitability challenges. The company's net gaming revenue reached €57.0 million, representing an 8% year-over-year increase (17% in constant currency), driven primarily by strong performance in its Mexican operations.
The standout performer was clearly Mexico, where net gaming revenue grew 15% to €30.5 million despite substantial currency headwinds from a 16% devaluation of the Mexican peso. In constant currency terms, Mexico's growth would have been an impressive 34%. This growth was accompanied by a 31% increase in average monthly active players in Mexico, reaching 82,000 users – a strong indicator of healthy customer acquisition and retention.
Spain, the company's second-largest market, showed signs of stagnation with a 2% decline in net gaming revenue to €21.9 million, though player numbers increased modestly by 4%. The company's smaller markets collectively grew revenue by 10% but saw an 11% decline in active players.
The concerning data point is Codere's shift from €3.4 million net income in Q1 2024 to a €0.7 million net loss this quarter. The reconciliation shows this was heavily influenced by a €5.8 million swing in interest expense/income, moving from a €4.8 million income position to a €1.1 million expense.
On the positive side, adjusted EBITDA slightly improved to €1.8 million from €1.7 million last year, and the company maintains a healthy cash position of €41.8 million. Management has reiterated their full-year outlook of €220-230 million in net gaming revenue and €10-15 million in adjusted EBITDA, suggesting confidence in accelerated performance through the remainder of 2025.
Investors should note the company's ongoing compliance issues with Nasdaq listing requirements. While Codere has regained compliance for its 2023 filings, it missed the deadline for 2024 reports and expects to receive a delisting notice. Management anticipates resolving this by filing the required documents before any hearing takes place.
The company has also begun implementing its share buyback program, repurchasing 68,384 shares at an average price of $6.63, representing $0.5 million of its authorized $5.0 million plan – a sign of management's confidence in the company's underlying value.
- Total revenue was
€54.3 m m in Q1 2025, while net gaming revenue1 was€57.0 m m in the period,8% above Q1 2024 (17% in constant currency terms). - Mexico revenue was
€27.6 m m in Q1 2025, while net gaming revenue was€30.5 m m in the period,15% above Q1 2024 (34% in constant currency terms). - Net loss was
€0.7 m m in Q1 2025 versus a net income of€3.4 m m in Q1 2024. - Total cash position of
€41.8 m m as of March 31, 2025. - Reiterating 2025 net gaming revenue outlook of
€220 -230 million and Adj. EBITDA2 outlook of€10 -15 million. - Repurchased
$0.5 million of the Company’s shares under the Company’s$5.0 million share buyback plan through May 15, 2025.
Madrid, Spain and Tel Aviv, Israel, May 16, 2025 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited3 financial results for the quarter ended March 31, 2025.
Below are the main financial and operating metrics of the period.
| Quarter ended March 31 | |||
| 2024 | 2025 | Chg. % | |
| Net Gaming Revenue (EUR mm)1 | |||
| Spain | 22.3 | 21.9 | ( |
| Mexico | 26.6 | 30.5 | |
| Other | 4.1 | 4.5 | |
| Total | 53.0 | 57.0 | |
| Avg. Monthly Active Players (000s)4 | |||
| Spain | 50.0 | 52.0 | |
| Mexico | 62.5 | 82.0 | |
| Other | 30.6 | 27.2 | ( |
| Total | 143.2 | 161.3 | |
Aviv Sher, CEO of Codere Online, stated, “We are off to a good start in 2025, with net gaming revenue reaching
Oscar Iglesias, CFO of Codere Online, commented, “We are very pleased with our performance in Mexico and the underlying trends in local currency. Also, our portfolio of active customers grew by an impressive
Mr. Iglesias added, “Based on these results, we believe that we are on track to meet our net gaming revenue outlook of
Recent Events
Compliance with Nasdaq Listing Requirements
- On May 1, 2025, the Company filed its 2023 annual report (ahead of the May 12th deadline) and on May 15th, Nasdaq informed the Company that it had regained compliance with applicable listing requirements.
- The Company is actively working to complete the audit of its 2024 financial accounts and expects to file the 2024 annual report by the end of this month. However, as we did not file by May 15th (i.e. within the 15-day grace period provided for), we expect that a delisting notice from Nasdaq is forthcoming.
- Upon receipt of said delisting notice, the Company will promptly request a hearing with the Nasdaq Hearings Panel and seek a stay of any trading suspension; however, the Company expects to file the 2024 annual report and regain compliance with Nasdaq requirements ahead of any hearing.
Repurchases under the Share Buyback Plan
- At a general meeting held on March 3, 2025, Codere Online shareholders authorized the repurchase of up to 1 million of the Company's ordinary shares over a one-year period (for a total investment of up to
$5.0 million , as approved by the Company’s Board of Directors). - The Company repurchased 68,384 shares at an average price of
$6.63 under the authorized share buyback plan through May 15, 2025.
Conference Call Information
Codere Online’s management will host a conference call to discuss the results and provide a business update at 8:30 am US Eastern Time today, May 16, 2025. Dial-in details as well as the audio webcast and presentation will be accessible on Codere Online’s website at www.codereonline.com. A recording of the webcast will also be available following the conference call.
Reconciliation of Revenue (IFRS) to Net Gaming Revenue (non-IFRS)
| Quarter ended March 31 | |||
| Figures in EUR mm | 2024 | 2025 | Chg. % |
| Total | |||
| Revenue | 50.4 | 54.3 | |
| (+) Accounting Adjustments5 | 2.6 | 2.6 | |
| Net Gaming Revenue | 53.0 | 57.0 | |
| Spain | |||
| Revenue | 22.3 | 21.9 | ( |
| (+) Accounting Adjustments5 | - | - | n.m. |
| Net Gaming Revenue | 22.3 | 21.9 | ( |
| Mexico | |||
| Revenue | 23.8 | 27.6 | |
| (+) Accounting Adjustments5 | 2.7 | 2.9 | |
| Net Gaming Revenue | 26.6 | 30.5 | |
| Other | |||
| Revenue | 4.3 | 4.8 | ( |
| (+) Accounting Adjustments5 | (0.2) | (0.3) | n.m. |
| Net Gaming Revenue | 4.1 | 4.5 | |
Reconciliation of Net Income (IFRS) to Adj. EBITDA (non-IFRS)6
| Quarter ended March 31 | |||
| Figures in EUR mm | 2024 | 2025 | Chg. |
| Net Income (Loss) | 3.4 | (0.7) | (3.4) |
| (+/-) Provision for Corporate Income Tax | 0.5 | 0.2 | (0.1) |
| (+/-) Interest Expense / (Income) | (4.8) | 1.1 | 5.8 |
| (+/-) Var. In Fair Value of Public Warrants | 1.9 | 0.5 | (1.4) |
| (+) D&A | 0.0 | 0.2 | 0.2 |
| EBITDA | 0.9 | 1.3 | 1.1 |
| (+) Employee LTIP Expense | 0.6 | 0.5 | (0.6) |
| (+/-) Other Accounting Adjustments | 0.2 | 0.0 | (0.4) |
| Adj. EBITDA (Pre Non-Recurring Items) | 1.7 | 1.8 | 0.1 |
| (+) Non-Recurring Items | 0.0 | 0.0 | 0.0 |
| Adj. EBITDA | 1.7 | 1.8 | 0.1 |
About Codere Online
Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online, launched in 2014 as part of the renowned casino operator Codere Group, offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere Online currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina; this online business is complemented by Codere Group’s physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.
About Codere Group
Codere Group is a multinational group devoted to entertainment and leisure. It is a leading player in the private gaming industry, with four decades of experience and with presence in seven countries in Europe (Spain and Italy) and Latin America (Argentina, Colombia, Mexico, Panama, and Uruguay).
Note on Rounding. Due to decimal rounding, numbers presented throughout this report may not add up precisely to the totals and subtotals provided, and percentages may not precisely reflect the absolute figures.
Forward-Looking Statements
Certain statements in this document may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Codere Online Luxembourg, S.A. and its subsidiaries (collectively, “Codere Online”) or Codere Online’s or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this document may include, for example, statements about Codere Online’s financial performance and, in particular, the potential evolution and distribution of its net gaming revenue; any prospective and illustrative financial information; and changes in Codere Online’s strategy, future operations and target addressable market, financial position, estimated revenues and losses, projected costs, prospects and plans as well as he Company’s expectations about the timing of completion and filing of the Form 20-F for the year ended December 31, 2024 (the “2024 Annual Report”), and statements related to the Company’s plan, timing and actions taken to regain compliance with the Listing Rule 5250(c)(1).
These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing Codere Online’s or its management team’s views as of any subsequent date, and Codere Online does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
As a result of a number of known and unknown risks and uncertainties, Codere Online’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that Codere Online does not presently know or that Codere Online currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Some factors that could cause actual results to differ include (i) changes in applicable laws or regulations, including online gaming, privacy, data use and data protection rules and regulations as well as consumers’ heightened expectations regarding proper safeguarding of their personal information, (ii) the impacts and ongoing uncertainties created by regulatory restrictions, changes in perceptions of the gaming industry, changes in policies and increased competition, and geopolitical events such as war, (iii) the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities, (iv) the risk of downturns and the possibility of rapid change in the highly competitive industry in which Codere Online operates, (v) the risk that Codere Online and its current and future collaborators are unable to successfully develop and commercialize Codere Online’s services, or experience significant delays in doing so, (vi) the risk that Codere Online may never achieve or sustain profitability, (vii) the risk that Codere Online will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all, (viii) the risk that Codere Online experiences difficulties in managing its growth and expanding operations, (ix) the risk that third-party providers, including the Codere Group, are not able to fully and timely meet their obligations, (x) the risk that the online gaming operations will not provide the expected benefits due to, among other things, the inability to obtain or maintain online gaming licenses in the anticipated time frame or at all, (xi) the risk that Codere Online is unable to secure or protect its intellectual property, (xii) the risk that Codere Online’s securities may be delisted from Nasdaq and (xiii) the possibility that Codere Online may be adversely affected by other political, economic, business, and/or competitive factors. Additional information concerning certain of these and other risk factors is contained in Codere Online’s filings with the U.S. Securities and Exchange Commission (the “SEC”). All subsequent written and oral forward-looking statements concerning Codere Online or other matters and attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
Financial Information and Non-GAAP Financial Measures
Codere Online’s financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), which can differ in certain significant respects from generally accepted accounting principles in the United States of America (“U.S. GAAP”).
This document includes certain financial measures not presented in accordance with U.S. GAAP or IFRS (“non-GAAP”), such as, without limitation, net gaming revenue, Adjusted EBITDA and constant currency information. These non-GAAP financial measures are not measures of financial performance in accordance with U.S. GAAP or IFRS and may exclude items that are significant in understanding and assessing Codere Online’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under U.S. GAAP or IFRS. You should be aware that Codere Online’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. In addition, the audit of Codere Online’s financial statements in accordance with PCAOB standards, may impact how Codere Online currently calculates its non-GAAP financial measures, and we cannot assure you that there would not be differences, and such differences could be material.
Codere Online believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing Codere Online’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their most directly comparable measure under IFRS are included herein.
This document may include certain projections of non-GAAP financial measures. Codere Online is unable to quantify certain amounts that would be required to be included in the most directly comparable U.S. GAAP or IFRS financial measures without unreasonable effort, due to the inherent difficulty and variability of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such comparable measures or such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, ascertained or assessed, which could have a material impact on its future IFRS financial results. Consequently, no disclosure of estimated comparable U.S. GAAP or IFRS measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.
Use of Projections
This document contains financial forecasts with respect to Codere Online’s business and projected financial results, including net gaming revenue and adjusted EBITDA. Codere Online’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this document, and accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this document. These projections should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. See “Forward-Looking Statements” above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of Codere Online or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this document should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.
For further information on the limitations and assumptions underlying these projections, please refer to Codere Online’s filings with the SEC.
Preliminary Information
This document contains figures, financial metrics, statistics and other information that is preliminary and subject to change (the “Preliminary Information”). The Preliminary Information has not been audited, reviewed, or compiled by any independent registered public accounting firm. This Preliminary Information is subject to ongoing review including, where applicable, by Codere Online’s independent auditors. Accordingly, no independent registered public accounting firm has expressed an opinion or any other form of assurance with respect to the Preliminary Information. During the course of finalizing such Preliminary Information, adjustments to such Preliminary Information presented herein may be identified, which may be material. Codere Online undertakes no obligation to update or revise the Preliminary Information set forth in this document as a result of new information, future events or otherwise, except as otherwise required by law. The Preliminary Information may differ from actual results. Therefore, you should not place undue reliance upon this Preliminary Information. The Preliminary Information is not a comprehensive statement of financial results, and should not be viewed as a substitute for full financial statements prepared in accordance with IFRS. In addition, the Preliminary Information is not necessarily indicative of the results to be achieved in any future period.
No Offer or Solicitation
This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities will be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
Trademarks
This document may contain trademarks, service marks, trade names and copyrights of Codere Online or other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this document may be listed without the TM, SM, © or ® symbols, but Codere Online will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights.
Industry and Market Data
In this document, Codere Online relies on and refers to certain information and statistics obtained from publicly available information and third-party sources, which it believes to be reliable. Codere Online has not independently verified the accuracy or completeness of any such publicly-available and third-party information, does not make any representation as to the accuracy or completeness of such data and does not undertake any obligation to update such data after the date of this document. You are cautioned not to give undue weight to such industry and market data.
Contacts:
Investors and Media
Guillermo Lancha
Director, Investor Relations and Communications
Guillermo.Lancha@codere.com
(+34) 628.928.152
1 Net Gaming Revenue is a non-IFRS measure; please see reconciliation of Net Gaming Revenue to Revenue at the end of the report.
2 Adjusted EBITDA is a non-IFRS measure; please see reconciliation of Adjusted EBITDA to Net Income at the end of the report. Net gaming revenue and Adjusted EBITDA outlooks are forward-looking non-IFRS measures; please see important disclaimers at the end of the report.
3 See “Preliminary Information” below.
4 Average Monthly Active Players include real money (i.e. exclude free bets) sports betting and casino actives.
5 Figures primarily reflect differences in recognition of revenue related to certain partner and affiliate agreements in place in Colombia, VAT impact from entry fees in Mexico and the impact from the application of inflation accounting (IAS 29) in Argentina.
6 Please refer to page 26 of our Q1 2025 Earnings Presentation for further details regarding this reconciliation.
FAQ
What were Codere Online's (CDRO) Q1 2025 financial results?
How is Codere Online performing in the Mexican market in 2025?
What is CDRO's guidance for 2025?
What is the status of Codere Online's Nasdaq listing compliance?
How much has Codere Online spent on its share buyback program?
