Codere Online reports “better than expected” FY and Q4 results

Codere Online reported “better than expected” fourth quarter and 2022 full year results, despite negative cash flow during the year.

Codere Online’s net gaming revenue (NGR) was up by 48% to €122.9m for full-year 2022. However, the company reported negative cash flow of €46.0m (£40.8m/$49.1m).

“We are reporting better than expected Q4 and full year 2022 performance,” said Moshe Edree, outgoing CEO of Codere Online. “This success is a testament to our team’s dedication and focus on delivering an unparalleled online gaming experience for our customers.”

Looking at the NGR, Edree noted the “effectiveness of our growth strategy and our ability to successfully deploy marketing spend” across Codere Online’s operating locations.

Edree will step down from the position of CEO today (1 March), and current COO Aviv Sher will be take on the role. Edree will still be involved in the business as executive vice chairman of the board.  

Oscar Iglesias, CFO of Codere Online added: “We are pleased to have exceeded out 2022 net gaming revenue outlook of €115m to €120m and follow through on our commitment to investors.”  

Several changes to Codere Online’s business structure took place during 2022, including the sale of its Italian subsidiary on December 30, 2022.

Proceeds of the sale were not material.  

Fourth quarter  

Looking at Codere Online’s Q4 results, the company reported a 70% increase in NGR, from €22.2m in 2021 to €37.7m in 2022. The company attributed this to strong performances in Mexico and Spain.

However, net loss for the quarter was reported at €17.4m.

Total revenue for the quarter was €35.6m.

Marketing spend increased to €31.2m. This is a significant difference of 111.2% compared to Q4 2021, when marketing spend was €14.8m.  

Codere Online attributed its adjusted Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022 – which rose by 122.4% year-on-year to €14.5m – to its increased marketing spend.

Full year results

Turning to the full-year results, Codere Online reported net loss of €45.9m. However, this was an improvement of 32.5% from 2021’s €68.0m loss.  

Marketing expenses shot up by 78% in 2022 compared to the previous year, with an expenditure of €96.9m in 2022 compared to €54.4m in 2021.  

The EBITDA for FY22 was a loss of €50.3m, compared to the loss of €23.8m in 2021.

Projections for 2023

Codere Online also provided projections for the year ahead.

NGR for the year is projected to lie between €140m and €150m, while adjusted EBITDA is estimated between negative €20m to €30m.

The company said it aims to launch operations in the Argentinian province of Córdoba, while continuing to pursue licences in Buenos Aires and Mendoza.

Iglesias said that Codere Online was looking forward to establishing a presence in Argentina.

“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,” he said.

“We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”

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