Sports betting and iGaming operator Codere Online has reported its financial results for the third quarter of the year. For the period ended September 30, total revenue was €28.9 million ($29.9 million), 51% above Q3 2021, while net gaming revenue was €30.6 million ($31.7 million), 54% above the same period last year. However, losses increased 73% quarter-on-quarter from €6.7 million ($6.9 million) to €11.6 million ($12 million) despite the revenue growth.
The increased losses can be partly explained by a hike in marketing spend, with Codere spending €5 million ($5.2 million) more on marketing in Q3 than it did in Q2. Meanwhile, other costs remained largely static on a quarterly basis. Codere Online was spun out from the wider Codere business at the end of last year through a SPAC merger.
Moshe Edree, CEO of Codere Online, said the company was reporting a “strong” set of results on the back of stronger-than-expected results in the casino business. Spain exceeded the company’s expectations with a 29% year-over-year growth despite marketing restrictions currently in place, reaching €14.9 million ($15.4 million).
Additionally, performance in Mexico was “particularly strong” with net gaming revenue up by 82% Y-o-Y in the quarter, reaching €11.4 million ($11.8 million). “Given our strong results in Mexico and its significant growth potential, we will continue prioritizing investment in this market going forward,” Edree added.
Oscar Iglesias, CFO of Codere Online, added: “We are very encouraged by the acceleration in revenue growth as we approach the end of the year. With the World Cup still ahead of us, we are now confident that we will reach the high end of our full year net gaming revenue outlook and have narrowed the range to between €115 – 120 million ($119 – $124.3 million).”
“We are also excited about the opportunity in Argentina where we are putting the pieces in place to become one of the leading operators in the country,” added Iglesias. In September, the company was pre-awarded an online license in the Province of Cordoba. Of the initial 10 parties that submitted applications, eight were pre-awarded, with Codere ranking first among them.
“We expect the final granting of the licenses to take place before year-end and to be operating in the Province of Cordoba in 2023,” the company said in a statement. As for other licenses, the company has recently renewed for three years its online gaming license in Colombia, extending its term until 2025; and is also pursuing a license in the Province of Buenos Aires, Argentina, while also expecting to participate in the tender process in the Province of Mendoza.
