Codere Online has confirmed that CEO Moshe Edree is departing his role after losses reached $49 million in 2022, its first full-year trading as a Global Nasdaq business. Edree will remain at the company as Executive Vice Chairman of the Board, whilst COO Aviv Sher is set to step up and replace him in the top role.
Edree commented on his departure: “I am very proud of what we have accomplished together in our first year as a public company, and I am grateful for the opportunity to have served as CEO during such a critical phase of expansion and growth. Aviv and I have been working together for over a decade and he has played a critical role in our success.”
The departing CEO further expressed confidence in Sher’s leadership and him being able to take the company “to even greater heights.” The executive leadership changes came as Codere posted “better than expected” Q4 revenues of $36.3 million, pushing full-year NGR to $136.6 million, up 48% year-over-year.
Most of the growth came from the Spanish online gambling group’s Latin American markets of Mexico and Colombia, which saw revenue increases of 83% and 72% respectively. Mexico contributed $54.5 million in revenue during 2022, whilst Colombia delivered $8.4 million.
During Q4, Mexico saw its revenue increase by a whopping 106%, primarily attributed to a strong performance during the soccer World Cup. The player base of the Mexican unit also almost doubled during Q4, and full-year active monthly players were up 59% to 38.5 million. Colombia was also successful in this regard, with monthly players up 43% to 28.7 million.
Latin American growth was supported by improved performance in Codere Online’s home market of Spain, which generated Q4 revenue of $19.1 million, up 42%. However, despite the growth and increases in active players, the betting firm still posted losses of $18.6 million in Q4, and of $49 million for the full year of 2022.
Filing its Q4 update, Codere Online said its total cash position stands at “nearly €54 million ($57.4 million) as of 31 December 2022.” The company’s 2023 outlook projects the firm to deliver an NGR in the range of $148.7 million – $159.4 million, alongside an Adjusted EBITDA outcome of negative $21.2 million – 31.9 million.
Edree’s departure and 2023 prospects
In his final statements as CEO, Edree said: “The World Cup undoubtedly played a significant role in keeping existing customers engaged but also attracting new customers during this quarter in which we had 54% more active players than in the same period of 2021.”
“In Mexico, net gaming revenue more than doubled from the prior-year quarter, and was over €50m for the full year,” he further explained. “Meanwhile, in Spain, we achieved a significant 42% growth in net gaming revenue, reflecting our unwavering commitment to this market and to providing best-in-class products and experiences to our customers.”
Detailing the highlights of the past year, Edree noted that the Q4 and full-year 2022 results were “better than expected,” and attributed the success to the team’s “dedication and focus on delivering an unparalleled online gaming experience for our customers.” Looking to the year ahead, Codere Online targets further growth, including a launch in the Argentine province of Cordoba, and the company expects licensing as well in Buenos Aires and Mendoza.
“We continue to be very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress towards starting operations in several new regions this year,” said Oscar Iglesias, CFO. “We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”
And commenting on Edree’s departure, Chairman Patrick Ramsey stated: “We are grateful to Moshe for his valuable contribution over these years. We look forward to continuing working with him in his new role while we welcome Aviv and wish him the best leading the company into the future.”
Original article: https://www.yogonet.com/international/news/2023/03/02/66290-codere-online-ceo-moshe-edree-departs-after-losses-reach-49m-in-2022-coo-aviv-sher-to-step-up
