Codere Online posts 20% revenue growth in Q3 2024 amid Nasdaq delisting fight
The Spain and Latin America-focused operator reported strong quarterly growth in Mexico and Spain even as it battles a Nasdaq delisting notice tied to delayed annual filings.
Codere Online has reported preliminary unaudited financial results for the third quarter of 2024, showing total revenue of €49.2 million and net gaming revenue of €51.7 million, up 20% on the same period last year.
The Madrid and Tel Aviv-based operator, listed on Nasdaq under CDRO and CDROW, said growth was driven by its two core markets. Mexico generated €24.2 million in revenue and €26.7 million in net gaming revenue, a 27% year-on-year rise, despite currency headwinds following the devaluation of the Mexican peso after the country’s presidential election in June. Spain contributed €20.9 million in net gaming revenue, up 11%.
Profitability improves
For the first nine months of 2024, Codere Online reported net income of €2.8 million when excluding the non-cash impact of changes in the fair value of public warrants, compared with a net loss of €2.8 million over the same period in 2023. The company posted its third consecutive quarter of positive Adjusted EBITDA, taking the year-to-date figure to €4.5 million, with a cash position of €44.0 million as of 30 September 2024.
Management said it now expects to finish the year towards the upper end of its full-year guidance ranges of €205 to €215 million in net gaming revenue and €2.5 to €7.5 million in Adjusted EBITDA.
Average monthly active players across the group rose 15% year-on-year to 143,400 in the quarter, with growth recorded in both Spain and Mexico.
Nasdaq delisting proceedings
The results were published against the backdrop of ongoing compliance issues with Nasdaq. On 12 November 2024, Codere Online received a letter from the exchange stating its intention to delist the company’s securities due to the delayed filing of its Form 20-F annual report for 2023. The company formally requested a hearing to appeal the decision on 18 November, and Nasdaq confirmed on 25 November that the hearing had been scheduled for 16 January 2025. Codere Online said it continues working to complete and file the outstanding annual report as soon as possible.
The company operates online sports betting and casino products in Spain, Mexico, Colombia, Panama and Argentina, complementing the retail operations of its parent, Codere Group, across Europe and Latin America.