Codere Online Revenue Jumps 33% to € 41.7m in H1 | Finance
Codere Online, the business that will be a spin-off from Codere, saw a 33% year-over-year increase in revenue in the first half of its 2021 fiscal year, driven by an increase in the average number of monthly active players.
Net gaming revenue for the six months to June 30 was € 41.7m (£ 35.6m / $ 41.7m), compared to € 31.4m for the corresponding period of last year.
Spain remained Codere Online’s main source of revenue, with revenue up 19% year-on-year to € 25.6 million.
Codere Online also saw strong growth in Colombia, where revenue rose 69% to € 12.8 million, although Mexico saw the largest increase as revenue jumped 134% to 2.2. millions of euros. However, revenues in other regions decreased by 25% from € 1.3m to € 1.0m.
The operator also noted a 64% increase in the average number of monthly active players, from 41,100 to 67,400 in total.
Average monthly active gamers in Spain increased by 42% to 34,200, as well as 68% in Mexico to 17,100, 131% to 15,600 in Colombia and 174% to 6,000 in other regions.
In the second quarter, Codere Online saw similar trends, with revenue up 43% to € 21.0m.
Spain leads the way with revenue of 12.6 million euros, up 23%, while Mexican revenue increased 108% to 6.4 million euros and the Colombia revenue rose 181% to € 1.4 million, while revenue in other areas declined 29% to € 600,000.
In terms of average monthly active players, the total figure for the quarter was 66,700, up 142% from a year ago.
“Our second quarter results reflect strong revenue trends in Spain and the substantial growth achieved across Latin America, with a 43% year-over-year increase in our total net gaming revenue,” said CEO of Codere Online, Moshe Edree. “This performance is due to a 142% increase in the average number of active players in the second quarter.
“From the second quarter of 2021, we started to face the expected regulatory hurdles in the Spanish market which limited our ability, as well as that of all online gaming operators, to offer bonuses to players and others. marketing activities (advertising and sponsorship). Nevertheless, the company has adapted to this new environment and generated substantial growth in its turnover.
“In Mexico, our second market, we more than doubled our net gaming revenue in the second quarter of 2021, partly due to the impact of Covid on sporting events in the second quarter of 2020, but also thanks to our differentiated omnichannel offering. to our customers.
“Additionally, since we migrated our Mexican online platform in early March, our systems are better prepared to handle the higher volume of customers and will provide customers with a better and more reliable user experience. “
Edree also refers to broader activities within Codere Online, the business being spun off from Codere through an agreement with Special Purpose Acquisition Company (SPAC) DD3 Acquisition Corp.
In June, it was announced that the Boards of Directors of Codere and DD3 had approved plans to split and trade the new company on the US Nasdaq stock market.
“We continue to expand our presence in Latin America and look forward to deploying our full marketing strategy once the business combination with DD3 is complete,” said Edree.
“As part of this marketing strategy, we have already strengthened our presence in Latin America through alliances with key football teams in the region, such as Rayados in Mexico and River Plate in Argentina, with whom we have signed sponsorship in July. “
Last month, it was announced that Codere’s restructuring deal – which will see creditors take control of the core business in a debt-for-equity deal – is expected to be reached on November 5.
Since the restructuring agreement involves changing the terms of the Codere notes – so that noteholders receive shares of the Codere holding company rather than cash – it requires the consent of those noteholders.
This will be done through a vote, with holders having until October 18 to give their consent.
If the deal – which has already received the backing of the majority of creditors – is approved, it is expected to go into effect on November 5.