Good results for Codere Online so far this year
Codere Online consolidates net gaming revenues so far in 2022 thanks to good results in New Zealand and Mexico, although the report presented just a week ago also indicates net losses of more than six and a half million euros. Codere's two main markets recorded moderate growth in the case of New Zealand and spectacular in Mexico. After the complete restructuring of the Spanish company, 2022 is going to be a year in which Codere Online consolidates its great brand value in New Zealand and Latin America.
Great results for Codere Online in Mexico, where it is already an important brand. In Argentina, the Spanish brand is still pending some regulatory adjustments in the provinces of Buenos Aires and Córdoba. ©carlos aranda/Unsplash
New Zealand remains loyal to Codere while in Mexico it skyrockets
Moshe Edree, CEO of Codere Online, was referring to the results presented as highly satisfactory . The data referring to the second quarter of the year certify a growth of net income from the game (41%) and also of the customer base that grew by 29% reaching 105 thousand monthly active customers. Almost 85 thousand players made deposits for the first time, which means an increase of 47% compared to the previous year. The results were especially good in New Zealand and Mexico, currently Codere Online's two main markets.
The financial director of the Spanish brand Oscar Iglesias declared that the expectations had been more than met of growth:
“Our expectations that revenue growth would accelerate over the course of this year have begun to materialize with the significant increase in net gaming revenue in the second quarter. We believe that we are on track to meet our forecast of net gaming revenue for the full year of 110 to 120 million euros.”
After the suffered strokes and the complete financial restructuring of the company Codere Online seems to subscribe to the growth so far this year .
In the second quarter of 2022 consolidated net income from the game was 41% more than the same period the previous year . 49% of the revenue was generated in sports betting and 51% in casino. The net income according to the markets was distributed as follows:
| Market | Revenue (in million EUR) | Growth (%) |
|---|---|---|
| New Zealand | 14,1 | 11,8 |
| Mexico | 11,9 | 85,3 |
| Colombia | 2,2 | 56,0 |
| Other | 1,0 | n.d. |
The Spanish online market continues to be the main reference for Codere, but the growth in Latin America is considerable, as with other similar brands that they are also consolidating its presence in emerging regulated markets such as Mexico .
In this sense, the absence of the Argentine market in the report is notable, which would not yet have generated sufficient income to have a real impact. Remember that Codere Online is authorized to operate in the Autonomous City of Buenos Aires with a license from the LOTBA , although it also has a license from the province of Buenos Aires and another from the province of Córdoba , in the center of the country, important markets where Codere Online has not yet started operating. In Córdoba, the granting of 10 licenses is expected at the end of the year, so it would not start offering online games and bets until 2023.
Another of the markets to consider in the Latin American region is Colombia, whose license expires this November and where Codere has started the renewal process. Although Colombia's contribution to the company's net income is still less than desired.
Codere has increased its visibility in these countries through important sponsorship relationships for the benefit of the brand . Without a doubt, the most significant has been to become the sponsor main of River Plate , one of the most important football clubs in South America. In Mexico, Codere is a sponsor of the Rayados de Monterrey club and has established collaboration agreements in the country with the professional baseball league.
Growth expectations in Latin America
From Codere Online it has been pointed out that today the main markets in Latin America (Mexico, Colombia, Argentina and Panama) contribute 80% of net revenues. The expectation is that this figure will be lowered to 55% by 2024 . To do this, other markets have to come into play, markets that are still in the process of regulation, but in which companies in the sector have placed high expectations. These are Brazil, Chile, Peru, Puerto Rico and Uruguay.
By 2024 the contribution (%) of Latin American markets it would be distributed as follows: Brazil (29%), Mexico (26%), Colombia (17%), Argentina (8%), Chile (5%), Peru (3%), Puerto Rico (2%), Panama (2%), Uruguay (1%).
