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sports betting and casino operator Codere Online showcased a double- increase in net gaming revenue in Q2 2023, accompanied by reduced losses.

Total revenue for Q2 2023 recorded a 35% year-on-year increase, reaching $40.23 million (€37.1 million), while net gaming revenue surged by 34% to $42.40 million (€39.1 million). Codere also reported a substantial in active monthly players, totaling 125,800, marking a 20% increase compared to Q2 2022.

The surge in figures was primarily attributed to results from Mexico and , which consequently led to an upward revision of the net gaming revenue outlook for 2023, now ranging from $162 million (€150 million) to $173.5 million (€160 million).

Adjusted EBITDA is projected to fall between a negative $16.27 million (€15 million) and $27.11 million (€25 million), with a strategic goal of achieving EBITDA and cash flow positivity for the full year in 2024.

Mexico emerged as Codere Online’s largest market in the quarter, achieving a 51% in net gaming revenue to $19.52 million (€18.0 million). The number of active players in Mexico also saw significant , surging by 54%. It surpassed ’s performance for the first time since its operations in the country commenced.

In , net gaming revenue climbed by 24% to $18.98 million (€17.5 million), accompanied by an 11% increase in active players, reaching 40,700. Despite a decrease in revenue within the smaller Colombian division, Codere Online’s other markets collectively grew by 40% to $1.52 million (€1.4 million).

In terms of other financials, adjusted EBITDA for Q2 2023 showed a marked improvement, with a negative $4.88 million (€4.5 million) compared to a $10.74 million (€9.9 million) loss during the same period in 2022.

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Expenses saw an increase compared to the previous period but were notably lower in proportion to the generated revenue. Marketing expenses accounted for $20.71 million (€19.1 million), constituting 48.8% of Q2 2023 revenue, compared to 66.2% in Q2 2022.

The net loss for Q2 2023 was $1.84 million (€1.7 million), a significant reduction from the $7.27 million (€6.7 million) net loss reported in Q2 2022. The company’s total cash position was over $48.80 million (€45 million) at the end of the period, compared to $53.14 million (€49 million) at the end of Q1.

Aviv Sher, CEO of Codere Online, expressed satisfaction with the Q2 results, emphasizing the company’s 34% growth in net gaming revenue, despite the usual seasonal decline in sporting events. “Our casino product, which has been a strategic priority for some time, contributed 54% of our revenue in the period,” he noted.

Oscar Iglesias, CFO of Codere Online, highlighted their strong revenue growth despite reduced marketing investment, by strong brand recognition, higher-quality customers, and product enhancements. 

“This has allowed us to reduce our Adjusted EBITDA loss by more than half to negative $4.88 million (€4.5 million) in the second quarter,” Iglesias pointed out. He added that the company’s first-half results exceeded their original expectations.

In addition to the financial results, Codere Online also noted a recent incident of fraudulent withdrawals totaling $0.54 million (€0.5 million) in Spain, originating from a customer’s online account in a third-party retail gaming hall. The company is actively investigating the matter and will pursue the recovery of the misappropriated funds.

Access the full Q2 2023 report here.

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