Codere Online has announced significant growth for the first quarter of 2025, reporting €54.3 million (approximately $61 million) in revenue, an 8% increase compared to the same period in 2024. The company remains on track to meet its previously stated net gaming revenue outlook of $238 million–$248 million and adjusted EBITDA guidance of $10.8 million–$16.2 million for the year.
Revenue Performance & Market Trends
CEO Aviv Sher praised Codere Online’s strong start to 2025, highlighting a 15% growth in net gaming revenue in Mexico to €30.5 million ($33 million) despite a 16% depreciation of the Mexican peso. In contrast, revenue in Spain declined slightly from the previous year, totaling €21.9 million ($23.7 million).
CFO Oscar Iglesias echoed this optimism, emphasizing the critical role of the Mexican market in driving growth. He noted a 31% increase in active clients compared to Q1 2024, a promising sign for the company’s expansion.
Iglesias reaffirmed that Codere Online remains on track to achieve its 2025 financial targets, maintaining its projected net gaming revenue of €220 million–€230 million ($238 million–$248 million) and adjusted EBITDA of €10 million–€15 million ($10.8 million–$16.2 million).
Challenges & Compliance Issues
While Codere Online’s revenue growth is impressive, it follows a series of setbacks in late 2024, including its separation from auditor Marcum and involvement in a lawsuit related to potential securities fraud and illicit practices. These issues contributed to a decline in Codere Online’s stock value at the start of 2025.
Additionally, the company reported a net loss of €0.7 million ($0.76 million) in Q1 2025, marking a reversal from the €3.4 million ($3.67 million) in net income posted in Q1 2024. This reflects a significant year-over-year drop in profitability.
Codere Online also anticipates a delisting notice from Nasdaq due to its failure to file its 2024 annual report by the May 15 deadline, underscoring ongoing compliance hurdles. Meanwhile, revenue in Spain declined by 2%, signaling potential challenges in maintaining market share.
Looking Ahead
Despite these difficulties, Codere Online remains committed to growth, particularly within the Latin American market. Its performance in Mexico continues to drive expansion, reinforcing the company’s vision of long-term success in the region.
Codere Online’s ability to navigate regulatory and financial challenges will be crucial as it moves forward in 2025.
