Online gaming operator with a focus on Spain and Latin America Codere Online published its financial results for the third quarter of 2022, posting €28.9 million ($30 million) in total revenue and €11.6 million ($12 million) net loss.
Total Revenue Growth
Nasdaq-listed Codere Online posted for the three months ended September 30, 2022, a 51% increase in total revenue year-over-year and a 5.5% increase to the €27.4 million ($28.5 million) registered in Q2 2022.
Commenting on the results, Codere Online chief executive officer Moshe Edree outlined that growth was mainly due to the “stronger than expected results” in the company’s casino business. He also pointed the market in Mexico performed “particularly strong,” while Spain also exceeded the company’s expectations “despite the marketing restrictions currently in place.”
Revenue in Mexico reached €11.4 million ($11.9 million) and exceeded the Q3 2021 figure by 80%. In Spain, Codere Online achieved a result only 29% above the respective quarter in 2021, €14.9 million ($15.5 million) mainly due to the marketing restrictions. On a sequential basis, revenue in Mexico grew by 7.5% while in Spain, growth was 5.7%.
Operations in Colombia generated €1.8 million ($1.88 million) revenue, while operations in other markets added €0.7 million ($0.73 million). Compared to the previous quarter of 2022, Colombia posted an increase of 80% while other markets decreased by 30%.
Net Loss Increased
Codere Online does not provide any details related to the company’s expense structure during the quarter but the bottom line was a net loss of €11.6 million ($12 million). The figure cannot be compared year-over-year as in its Q3 2021 report the company did not provide a figure for its net income.
Net loss in Q1 2022 was €10.1 million ($10.5 million) with 82,800 average monthly active players, it fell to €6.7 million ($6.97 million) in Q2 when revenue was up 14% quarter-over-quarter and average monthly active players were 104,700 and went up 73% in Q3 when revenue was up 5.5% quarter-over-quarter with average active monthly players slightly decreasing to 104,300.
Codere Online chief financial officer Oscar Iglesias commented on the results, stressing the acceleration in revenue growth, confident that with the upcoming FIFA World Cup 2022, the business will be able to reach the high end of its full-year net gaming revenue outlook.
Iglesias also mentioned the opportunity in Argentina where Codere Online is pursuing an online gaming license in the Province of Buenos Aires and planning to bid for a license in the Province of Mendoza.