- Total
revenue was €51.7 mm in Q2 2024, while net gaming revenue1 was
€54.4 mm in the period, 39% above Q1 2023.
- Mexico
revenue was €25.3 mm in Q2 2024, while net gaming revenue was €28.2
mm in the period, 57% above Q2 2023.
- Spain
revenue (and net gaming revenue) reached €21.8 mm in Q2 2024, 25%
above Q2 2023.
- Net
income excluding the non-cash variation in fair value of public
warrants2 was €5.5 mm in H1 2024 versus a net loss of €0.7 mm in H1
2023.
- Total
cash position of €40.5 mm as of June 30, 2024.
-
Increasing full year 2024 net gaming revenue outlook to €205 - 215
mm and Adj. EBITDA3 outlook to positive €2.5 - 7.5 mm.
Madrid, Spain and Tel Aviv, Israel, July
31, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO /
CDROW, the “Company”), a leading online gaming operator in Spain
and Latin America, has released its preliminary unaudited4
financial results for the quarter ended June 30, 2024.
Below are the main financial and operating
metrics of the period.
|
Quarter ended June 30 |
|
Six months ended June 30 |
|
2023 |
2024 |
Chg. % |
|
2023 |
2024 |
Chg. % |
|
|
|
|
|
|
|
|
Net
Gaming Revenue (EUR mm)1 |
|
|
|
|
|
|
|
Spain |
17.5 |
21.8 |
25% |
|
35.9 |
44.1 |
23% |
Mexico |
18.0 |
28.2 |
57% |
|
35.6 |
54.8 |
54% |
Other |
3.6 |
4.4 |
22% |
|
7.0 |
8.5 |
21% |
Total |
39.1 |
54.4 |
39% |
|
78.6 |
107.4 |
37% |
|
|
|
|
|
|
|
|
Avg.
Monthly Active Players (000s)5 |
|
|
|
|
|
|
|
Spain |
40.7 |
51.5 |
26% |
|
40.5 |
50.8 |
25% |
Mexico |
49.7 |
62.3 |
25% |
|
49.6 |
62.4 |
26% |
Other |
35.4 |
31.8 |
(10%) |
|
34.8 |
31.2 |
(10%) |
Total |
125.8 |
145.6 |
16% |
|
124.8 |
144.4 |
16% |
Aviv Sher, CEO of Codere Online, commented on
the results, “We are very pleased with our performance in the
second quarter of 2024, with net gaming revenue of €54.4 million, a
39% increase over the prior year period. In the quarter we saw
improved customer engagement and customer acquisitions in part due
to targeted additional marketing investments made around certain
major sports betting events (i.e. Eurocup and Copa America). As a
result, performance in our core Mexican and Spanish businesses was
strong (notwithstanding all the Spanish victories in the Eurocup),
with net gaming revenue growing by 57% in the second quarter in
Mexico to over €28 million and 25% in Spain to nearly €22
million.”
Oscar Iglesias, CFO of Codere Online, stated,
"We are pleased to have delivered positive Adjusted EBITDA for the
second consecutive quarter despite the increased marketing spend
around the Eurocup and Copa America. The €1.3 million in Adjusted
EBITDA in the second quarter is nearly €6 million better than the
prior year period and for the year-to-date period we have generated
€3.0 million."
Mr. Iglesias further added, "Thanks to this
solid performance in the first half of the year, we are well on
track to meet the profitability and cash generation expectations we
set out to achieve in the beginning of the year, while still
delivering significant top line growth. As such, we are raising our
outlook for the full year 2024 and now expect to generate between
€205 - 215 million of net gaming revenue, which represents a growth
of 22% year-on-year at the midpoint, and between €2.5 - 7.5 million
of positive Adjusted EBITDA."
Recent Events
Board Changes
- In the
AGM held on June 24, 2024, Mr. Gabriel Saenz de Buruaga, Mr. Taavi
Davies and Mr. Claude Noesen were appointed as directors,
succeeding Mr. Patrick Ramsey, Ms. Michal Elimelech, and Mr.
Laurent Teitgen.
- Mr.
Gonzaga Higuero, CEO of Codere Group, was re-appointed as director
and named Chairman of the Board.
Research Coverage
- On July
11, 2024, Craig-Hallum Capital Group initiated coverage of Codere
Online6.
- For
more information about research firms currently covering Codere
Online please access the Analyst Coverage section of our
website.
Conference Call Information
Codere Online’s management will host a
conference call to discuss the results and provide a business
update at 8:30 am US Eastern Time today, July 31, 2024. Dial-in
details as well as the audio webcast and presentation will be
accessible on Codere Online’s website at
www.codereonline.com. A recording of the webcast
will also be available following the conference call.
Reconciliation of Revenue (IFRS) to Net Gaming Revenue
(non-IFRS)
|
|
|
|
|
|
|
|
|
Quarter ended June 30 |
|
Six months ended June 30 |
Figures in EUR
mm |
2023 |
2024 |
Chg. % |
|
2023 |
2024 |
Chg. % |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
37.0 |
51.7 |
40% |
|
74.6 |
102.1 |
37% |
(+) Accounting
Adjustments7 |
2.0 |
2.7 |
35% |
|
3.9 |
5.3 |
36% |
Net Gaming Revenue |
39.1 |
54.4 |
39% |
|
78.6 |
107.4 |
37% |
|
|
|
|
|
|
|
|
Spain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
17.5 |
21.8 |
25% |
|
35.9 |
44.1 |
23% |
(+) Accounting
Adjustments7 |
- |
- |
n.m. |
|
- |
- |
n.m. |
Net Gaming Revenue |
17.5 |
21.8 |
25% |
|
35.9 |
44.1 |
23% |
|
|
|
|
|
|
|
|
Mexico |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
16.2 |
25.3 |
56% |
|
32.0 |
49.2 |
54% |
(+) Accounting
Adjustments7 |
1.9 |
2.9 |
53% |
|
3.6 |
5.6 |
56% |
Net Gaming Revenue |
18.0 |
28.2 |
57% |
|
35.6 |
54.8 |
54% |
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
3.4 |
4.5 |
32% |
|
6.8 |
8.8 |
29% |
(+) Accounting
Adjustments7 |
0.2 |
(0.1) |
n.m. |
|
0.3 |
(0.3) |
n.m. |
Net Gaming Revenue |
3.5 |
4.4 |
26% |
|
7.1 |
8.5 |
20% |
Reconciliation of Net Income (IFRS) to Adj. EBITDA
(non-IFRS)
|
Quarter ended June 30 |
|
Six months ended June 30 |
Figures in EUR
mm |
2023 |
2024 |
Chg. % |
|
2023 |
2024 |
Chg. % |
|
|
|
|
|
|
|
|
Net Income (Loss) |
0.9 |
(3.7) |
n.m. |
|
(0.3) |
(0.2) |
33% |
(+/-)
Provision for Corporate Income Tax |
(2.6) |
0.4 |
n.m. |
|
(2.4) |
0.9 |
n.m. |
(+/-) Interest
Expense / (Income) |
(2.6) |
(0.0) |
n.m. |
|
(5.0) |
(4.8) |
4% |
(+/-) Var. In
Fair Value of Public Warrants |
0.0 |
3.9 |
n.m. |
|
(0.3) |
5.8 |
n.m. |
(+)
D&A |
0.0 |
0.1 |
n.m. |
|
0.0 |
0.1 |
n.m. |
EBITDA |
(4.1) |
0.7 |
n.m. |
|
(8.0) |
1.7 |
n.m. |
(+) Employee
LTIP Expense |
1.2 |
0.6 |
(50%) |
|
1.7 |
1.1 |
(35%) |
(+/-) Other
Accounting Adjustments |
(1.9) |
0.0 |
n.m. |
|
(1.6) |
0.2 |
n.m. |
Adj.
EBITDA (Pre Non-Recurring Items) |
(4.8) |
1.3 |
n.m. |
|
(7.9) |
3.0 |
n.m. |
(+)
Non-Recurring Items |
0.3 |
0.0 |
n.m. |
|
0.3 |
0.0 |
n.m. |
Adj. EBITDA |
(4.5) |
1.3 |
n.m. |
|
(7.6) |
3.0 |
n.m. |
About Codere Online Codere Online refers,
collectively, to Codere Online Luxembourg, S.A. and its
subsidiaries. Codere Online launched in 2014 as part of the
renowned casino operator Codere Group. Codere Online offers online
sports betting and online casino through its state-of-the art
website and mobile applications. Codere currently operates in its
core markets of Spain, Mexico, Colombia, Panama and Argentina.
Codere Online’s online business is complemented by Codere Group’s
physical presence in Spain and throughout Latin America, forming
the foundation of the leading omnichannel gaming and casino
presence.
About Codere GroupCodere Group
is a multinational group devoted to entertainment and leisure. It
is a leading player in the private gaming industry, with four
decades of experience and with presence in seven countries in
Europe (Spain and Italy) and Latin America (Argentina, Colombia,
Mexico, Panama, and Uruguay).
Note on Rounding. Due to
decimal rounding, numbers presented throughout this report may not
add up precisely to the totals and subtotals provided, and
percentages may not precisely reflect the absolute figures.
Forward-Looking Statements
Certain statements in this document may constitute “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements regarding Codere Online Luxembourg, S.A. and its
subsidiaries (collectively, “Codere Online”) or Codere Online’s or
its management team’s expectations, hopes, beliefs, intentions or
strategies regarding the future. In addition, any statements that
refer to projections, forecasts or other characterizations of
future events or circumstances, including any underlying
assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements in this document may include, for
example, statements about Codere Online’s financial performance
and, in particular, the potential evolution and distribution of its
net gaming revenue; any prospective and illustrative financial
information; and changes in Codere Online’s strategy, future
operations and target addressable market, financial position,
estimated revenues and losses, projected costs, prospects and
plans.
These forward-looking statements are based on
information available as of the date of this document and current
expectations, forecasts and assumptions, and involve a number of
judgments, risks and uncertainties. Accordingly, forward-looking
statements should not be relied upon as representing Codere
Online’s or its management team’s views as of any subsequent date,
and Codere Online does not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
As a result of a number of known and unknown
risks and uncertainties, Codere Online’s actual results or
performance may be materially different from those expressed or
implied by these forward-looking statements. There may be
additional risks that Codere Online does not presently know or that
Codere Online currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. Some factors that could cause actual
results to differ include (i) changes in applicable laws or
regulations, including online gaming, privacy, data use and data
protection rules and regulations as well as consumers’ heightened
expectations regarding proper safeguarding of their personal
information, (ii) the impacts and ongoing uncertainties created by
regulatory restrictions, changes in perceptions of the gaming
industry, changes in policies and increased competition, and
geopolitical events such as war, (iii) the ability to implement
business plans, forecasts, and other expectations and identify and
realize additional opportunities, (iv) the risk of downturns and
the possibility of rapid change in the highly competitive industry
in which Codere Online operates, (v) the risk that Codere Online
and its current and future collaborators are unable to successfully
develop and commercialize Codere Online’s services, or experience
significant delays in doing so, (vi) the risk that Codere Online
may never achieve or sustain profitability, (vii) the risk that
Codere Online will need to raise additional capital to execute its
business plan, which may not be available on acceptable terms or at
all, (viii) the risk that Codere Online experiences difficulties in
managing its growth and expanding operations, (ix) the risk that
third-party providers, including the Codere Group, are not able to
fully and timely meet their obligations, (x) the risk that the
online gaming operations will not provide the expected benefits due
to, among other things, the inability to obtain or maintain online
gaming licenses in the anticipated time frame or at all, (xi) the
risk that Codere Online is unable to secure or protect its
intellectual property, and (xii) the possibility that Codere Online
may be adversely affected by other political, economic, business,
and/or competitive factors. Additional information concerning
certain of these and other risk factors is contained in Codere
Online’s filings with the U.S. Securities and Exchange Commission
(the “SEC”). All subsequent written and oral forward-looking
statements concerning Codere Online or other matters and
attributable to Codere Online or any person acting on their behalf
are expressly qualified in their entirety by the cautionary
statements above.
Financial Information and Non-GAAP
Financial MeasuresCodere Online’s financial statements are
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board
(“IFRS”), which can differ in certain significant respects from
generally accepted accounting principles in the United States of
America (“U.S. GAAP”).
This document includes certain financial
measures not presented in accordance with U.S. GAAP or IFRS
(“non-GAAP”), such as, without limitation, net gaming revenue and
Adjusted EBITDA. These non-GAAP financial measures are not measures
of financial performance in accordance with U.S. GAAP or IFRS and
may exclude items that are significant in understanding and
assessing Codere Online’s financial results. Therefore, these
measures should not be considered in isolation or as an alternative
to revenue, net income, cash flows from operations or other
measures of profitability, liquidity or performance under U.S. GAAP
or IFRS. You should be aware that Codere Online’s presentation of
these measures may not be comparable to similarly-titled measures
used by other companies. In addition, the audit of Codere Online’s
financial statements in accordance with PCAOB standards, may impact
how Codere Online currently calculates its non-GAAP financial
measures, and we cannot assure you that there would not be
differences, and such differences could be material.
Codere Online believes that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and trends
in comparing Codere Online’s financial measures with other similar
companies, many of which present similar non-GAAP financial
measures to investors. These non-GAAP financial measures are
subject to inherent limitations as they reflect the exercise of
judgments by management about which expense and income are excluded
or included in determining these non-GAAP financial measures.
Reconciliations of non-GAAP financial measures to their most
directly comparable measure under IFRS are included herein.
This document may include certain projections of
non-GAAP financial measures. Codere Online is unable to quantify
certain amounts that would be required to be included in the most
directly comparable U.S. GAAP or IFRS financial measures without
unreasonable effort, due to the inherent difficulty and variability
of accurately forecasting the occurrence and financial impact of
the various adjusting items necessary for such comparable measures
or such reconciliation that have not yet occurred, are out of our
control, or cannot be reasonably predicted, ascertained or
assessed, which could have a material impact on its future IFRS
financial results. Consequently, no disclosure of estimated
comparable U.S. GAAP or IFRS measures is included and no
reconciliation of the forward-looking non-GAAP financial measures
is included.
Use of Projections This
document contains financial forecasts with respect to Codere
Online’s business and projected financial results, including net
gaming revenue and adjusted EBITDA. Codere Online’s independent
auditors have not audited, reviewed, compiled or performed any
procedures with respect to the projections for the purpose of their
inclusion in this document, and accordingly, they did not express
an opinion or provide any other form of assurance with respect
thereto for the purpose of this document. These projections should
not be relied upon as being necessarily indicative of future
results. The assumptions and estimates underlying the prospective
financial information are inherently uncertain and are subject to a
wide variety of significant business, economic and competitive
risks and uncertainties that could cause actual results to differ
materially from those contained in the prospective financial
information. See “Forward-Looking Statements” above. Accordingly,
there can be no assurance that the prospective results are
indicative of the future performance of Codere Online or that
actual results will not differ materially from those presented in
the prospective financial information. Inclusion of the prospective
financial information in this document should not be regarded as a
representation by any person that the results contained in the
prospective financial information will be achieved.
For further information on the limitations and
assumptions underlying these projections, please refer to Codere
Online’s filings with the SEC.
Preliminary InformationThis
document contains figures, financial metrics, statistics and other
information that is preliminary and subject to change (the
“Preliminary Information”). The Preliminary Information has not
been audited, reviewed, or compiled by any independent registered
public accounting firm. This Preliminary Information is subject to
ongoing review including, where applicable, by Codere Online’s
independent auditors. Accordingly, no independent registered public
accounting firm has expressed an opinion or any other form of
assurance with respect to the Preliminary Information. During the
course of finalizing such Preliminary Information, adjustments to
such Preliminary Information presented herein may be identified,
which may be material. Codere Online undertakes no obligation to
update or revise the Preliminary Information set forth in this
document as a result of new information, future events or
otherwise, except as otherwise required by law. The Preliminary
Information may differ from actual results. Therefore, you should
not place undue reliance upon this Preliminary Information. The
Preliminary Information is not a comprehensive statement of
financial results, and should not be viewed as a substitute for
full financial statements prepared in accordance with IFRS. In
addition, the Preliminary Information is not necessarily indicative
of the results to be achieved in any future period.
No Offer or Solicitation This
document does not constitute an offer to sell or the solicitation
of an offer to buy any securities, nor will there be any sale of
securities in any states or jurisdictions in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities will be made except by means of a
prospectus meeting the requirements of section 10 of the Securities
Act of 1933, as amended, or an exemption therefrom.
TrademarksThis document may
contain trademarks, service marks, trade names and copyrights of
Codere Online or other companies, which are the property of their
respective owners. Solely for convenience, some of the trademarks,
service marks, trade names and copyrights referred to in this
document may be listed without the TM, SM, © or ® symbols, but
Codere Online will assert, to the fullest extent under applicable
law, the rights of the applicable owners, if any, to these
trademarks, service marks, trade names and copyrights.
Industry and Market Data In
this document, Codere Online relies on and refers to certain
information and statistics obtained from publicly available
information and third-party sources, which it believes to be
reliable. Codere Online has not independently verified the accuracy
or completeness of any such publicly-available and third-party
information, does not make any representation as to the accuracy or
completeness of such data and does not undertake any obligation to
update such data after the date of this document. You are cautioned
not to give undue weight to such industry and market data.
Contacts:
Investors and MediaGuillermo
Lancha Director, Investor Relations and
CommunicationsGuillermo.Lancha@codere.com(+34) 628 928 152
1 Net Gaming Revenue is a non-IFRS measure. Please see
reconciliation of Net Gaming Revenue to Revenue at the end of the
report. 2 Net income excluding the non-cash variation in fair value
of public warrants is a non-IFRS measure. Reconciliation: H1 2024
figure reflects a net loss of €0.2 mm (€0.3 mm in H1 2023)
excluding a €5.8 mm loss (€0.3 gain in H1 2023) from the variation
in fair value of public warrants. Figures presented for
illustrative purposes and do not include any potential impacts on
the provision for corporate income taxes.3 Adjusted EBITDA outlook
is a forward-looking non-IFRS measure. Please see important
disclaimers at the end of the report.4 See “Preliminary
Information”
below. 5 Average
Monthly Active Players include real money (i.e. exclude free bets)
sports betting and casino actives.6 Codere Online does not endorse,
recommend, or have any affiliation with Craig-Hallum Capital Group
LLC or their research. The views, opinions, and recommendations
expressed by Craig-Hallum Capital Group LLC are their own and do
not reflect the views or opinions of Codere Online. Investors
should conduct their own independent research and consult with a
financial advisor before making any investment decisions. Codere
Online is not responsible for any losses or damages arising from
the use of this information.7 Figures primarily reflect differences
in recognition of revenue related to certain partner and affiliate
agreements in place in Colombia, VAT impact from entry fees in
Mexico and the impact from the application of inflation accounting
(IAS 29) in Argentina.