Codere Online, the Spanish online gambling operator, continues to exhibit robust financial performance despite looming challenges of delisting from the Nasdaq Global Exchange. Publishing its Q3 trading update, the company anticipates ending 2024 at the upper end of its guidance for net gaming revenue and adjusted EBITDA. Codere's strong revenue growth in core markets like Spain and Mexico, coupled with improved cost controls, underscores its resilience. As the company appeals Nasdaq's delisting decision, Codere remains focused on delivering consistent financial results and maintaining investor confidence.

Solid Revenue Growth Across Core Markets

1. Strong Q3 Revenue Performance:

Codere Online reported net gaming revenues of €52 million, marking a 20% increase compared to €43 million in Q3 2023.
The year-to-date revenue reached €159 million, reflecting a 31% growth over 2023's €122 million.
2. Spain Maintains Stability:

The home market of Spain generated €20.9 million in net gaming revenue for Q3, up 11% year-over-year.
3. Mexico Overcomes Currency Challenges:

Revenues in Mexico surged 27% to €26.7 million, despite the Mexican peso's devaluation following the June presidential election.
Adjusted for constant currency, Mexico’s revenue growth would have been an impressive 43%.

Cost Control and Profitability Improvements

1. Reversal of EBITDA Losses:

Codere Online posted a positive EBITDA of €1.4 million in Q3 2024, a significant turnaround from a loss of €7.5 million in the same period last year.
Year-to-date EBITDA stands at €3 million, reversing €15 million in losses from 2023.
2. Focused Cost Management:

Improved cost controls and reduced interest expenses contributed to better financial performance, enabling sustained profitability.

Optimistic 2024 Outlook

1. Positive Guidance for Full-Year Results:

Codere Online expects to conclude 2024 at the upper end of its guidance range, with net gaming revenue between €205–215 million and adjusted EBITDA of €2.5–7.5 million.
2. Consistent Earnings Growth:

The company has recorded its third consecutive quarter of positive adjusted EBITDA, showcasing its ability to maintain financial discipline.

Challenges on the Nasdaq Front

1. Delisting Threat Looms:

Codere Online has requested a hearing with Nasdaq to appeal the exchange's decision to delist its securities.
The appeal is scheduled for 16 January 2025, with leadership working to finalize and submit its Form 20-F for 2023.
2. Strategic Focus on Compliance:

The company remains committed to addressing regulatory requirements and maintaining its Nasdaq listing to secure investor confidence.

Executive Insights on Performance

1. CEO’s Perspective:

Aviv Sher, CEO, highlighted the company's success in navigating market challenges: “Our net gaming revenue of €51.7 million represents a 20% increase over the third quarter of 2023. Growth in Mexico and strong performance in Spain have been critical to our results.”
2. CFO’s Financial Highlights:

Oscar Iglesias, CFO, emphasized cost control and cash generation: “Beyond top-line growth, we achieved €1.5 million in adjusted EBITDA and €3.5 million in cash during Q3. This consistency brings our year-to-date adjusted EBITDA to €4.5 million.”

Resilience Amid Market Challenges

1. Strategic Resilience:

Codere Online continues to execute its growth strategy while tackling external pressures, including the threat of delisting.
Leadership remains focused on expanding its presence in key markets while optimizing operational efficiencies.
2. Commitment to Stakeholders:

Codere’s ongoing appeal with Nasdaq reflects its determination to safeguard its market position and investor interests.