Multinational gaming company Codere Online has reported first-quarter revenues of €313.8 million ($334 million). The revenues fell 13.6% from the €363 ($394.4 million) posted in the same quarter last year, owing to challenges in Mexico and Argentina.
Adjusted EBITDA for Q1 also declined, dropping 26.6% from €64.4 million ($70 million) to €47.3 million ($51.3 million). Consolidated net revenues for Q1 were €185.9 million ($202 million), a 12.1% decrease from the €211.5 million ($230 million) reported in the same period of 2023.
Despite these headwinds, Codere highlighted the continuing recovery of its business following the elimination of restrictions in Mexico and Argentina, as reflected in the adjusted EBITDA.
In conversation with investors, the group said it is making progress in discussions with bondholders regarding a comprehensive recapitalization aimed at reducing debt and strengthening the balance sheet, with an update expected soon.
In contrast to the group’s overall decline, Codere Online performed well in Q1, with the division achieving a quarterly high revenue of €53 million ($57.5 million), a 34.2% increase from €39.5 million ($43 million) in Q1 2023.
This growth was driven by a 51.1% year-on-year revenue increase in Mexico, from €17.6 million ($19 million) to €26.6 ($29 million), and a 21.2% increase in Spain, from €18.4 million ($20 million) to €22.3 million ($24.2 million).
Codere’s online revenue constituted 16.9% of the group’s Q1 total, with retail bringing in €260.8 million ($283.3 million), a 19.4% decline from the €323.6 million ($351.6 million) in Q1 2023.
The company noted improved marketing expenditure in Mexico and Spain within its online division, which helped expand the active customer base in these countries by approximately 25.2%, from 89.8 million to 112.5 million.
Codere Online’s Q1 adjusted EBITDA was €8.8 million ($9.5 million), more than double the €4.3 ($4.6 million) recorded in the same quarter last year. The net income for Q1 was €3.4 million ($3.7 million), up from a net loss of €1.3 million ($1.4 million) in Q1 2023. The company’s cash position remained stable with €38.5 million ($42 million) in liquidity.
Following a strong Q1, Codere Online has raised its expectations for 2024, increasing its net gaming revenue outlook to €195-€210 million ($213-$223 million) from the previous €185-€200 million ($201-217.3 million). The company reiterated its plan to become adjusted EBITDA and cash flow positive for the full year in 2024.
However, in contrast to the positive performance of Codere Online in Q1, the group’s retail business struggled. Argentina’s economic problems led to a 59.1% drop in retail revenue, from €84.7 ($92 million) to €34.6 ($37.5 million). Mexico saw an 11.3% decrease in retail revenue, producing just €54 million ($58.6 million).
Italy remained the company’s largest retail market in Q1, despite a 2.6% revenue decline to €78.3 million ($85 million).
Codere’s adjusted EBITDA across its retail sector was €38.5 million ($42 million), a 35.8% decrease from the €60 million ($65 million) recorded in the same quarter last year.
Original article: https://www.yogonet.com/international/noticias/2024/05/20/72257-coderes-q1-revenue-drops-to-334-million-amid-challenges-in-mexico-and-argentina
