Codere Online Sees Growth Despite Currency Challenges

Codere Online has demonstrated resilience in its financial performance for the second quarter of 2025, reporting a notable €54.8 million in net gaming revenue. This marks a modest 1% increase from the same quarter the previous year. When evaluated using constant currency metrics, the increase is even more pronounced at 12%, highlighting how fluctuations in exchange rates, particularly impacting the Mexican peso, impacted the apparent revenue growth. Despite posting a net loss of €3.1 million in the first half of 2025, primarily due to a €3 million foreign exchange loss, the company remains optimistic about its market position. Comparing this to a €0.2 million loss from the first half of 2024, it is clear that the exchange rates were a significant factor in this financial setback.

Regional Performance: Mexico Leads with Robust Growth

Mexico continues to serve as a strong market for Codere Online, generating €29 million in Q2 net gaming revenue, a 3% increase year-on-year. In local currency terms, ignoring the 19% depreciation of the Mexican peso, the revenue actually surged by an impressive 23%. Furthermore, user engagement in Mexico soared, with monthly active users climbing by 36% compared to Q2 2024. CEO Aviv Sher remarked on the resilience seen in Mexico, stating, “Our net gaming revenue reached €54.8 million in the second quarter of 2025, slightly above the prior year period despite the headwinds we faced across most of our markets. In Mexico, we were successful in growing net gaming revenue despite the 19% devaluation of the Mexican peso and grew our portfolio of active customers in the country by an impressive 36% versus Q2 2024.” In contrast, the Spanish market showed stability, contributing €22.1 million in revenue, which translated to a slight 1% growth. However, a 3% decline in average monthly active users indicates a need for engagement strategies to mitigate potential market exhaustion or retention challenges. Meanwhile, the performance in Colombia, Argentina, and Panama—grouped as "Other"—reported a 16% drop in net gaming revenue coupled with a 35% user activity decline.

Strategy and Outlook: Positioning for Long-term Success

Codere Online's strategic focus remains clear despite the mixed outcomes across different regions. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the first half of 2025 increased to €4.1 million, up from the previous year's €3.0 million for the same period. The company's projections for the full year are to achieve net gaming revenue between €220 million and €230 million, with adjusted EBITDA expected to range from €10 million to €15 million. To bolster investor confidence, Codere Online advanced its share repurchase strategy, buying back shares worth $0.7 million during Q2, averaging a price of $6.89 per share. This move is part of a broader $5 million share repurchase plan designed to stabilize and enhance shareholder value. Lastly, in a reassuring development, Codere Online reaffirmed its adherence to Nasdaq listing standards in June, mitigating concerns of potential delisting and ensuring its continued presence in the Nasdaq Capital Market. Codere Online CFO Oscar Iglesias reiterated optimism by emphasizing successful trends in key markets, saying: “We continue to see strong underlying trends in Mexico, where our net gaming revenue grew by 23% in local currency. With the first half of the year now behind us, and notwithstanding that a number of challenges still remain, we continue to expect to meet our net gaming revenue outlook of €220m–€230m and Adj. EBITDA outlook of €10m–€15m that we shared earlier this year.” Through its strategic focus, Codere Online positions itself to navigate ongoing financial challenges and further reinforce its market standing. Source: Source: “Q2 2025: Codere Online grows revenue despite currency pressures”, codereonline.com Jul 31, 2025. By GamesAndCasino