Codere Online has demonstrated positive momentum in its first quarter financial results for 2025, showcasing resilience amid varying market conditions across its operational regions. The online gambling operator reported total revenue reaching €54.3 million ($61 million), marking an 8% increase compared to the same period in 2024, with significant growth contributions from its Latin American operations despite currency challenges.
Financial Performance Overview
The company’s Q1 2025 financial results reveal a net gaming revenue of €57 million ($63.9 million), representing an 8% year-over-year increase from Q1 2024’s €53 million. When adjusted for currency fluctuations, this growth appears even more substantial at 17% on a constant currency basis. This performance marks Codere Online’s fifth consecutive quarter of positive adjusted EBITDA, which improved slightly to €1.8 million from €1.7 million in the same period last year.
Despite the revenue growth, Codere Online reported a €0.7 million net loss for Q1 2025, a significant shift from the €3.4 million profit recorded in Q1 2024. This reversal primarily stemmed from increased interest expenses, whereas the company had benefited from interest income during the previous year. The company also increased its personnel and marketing spending by more than €2 million during the quarter, reflecting ongoing investments in growth initiatives.
Casino games have emerged as a key revenue driver, contributing 61% of the total net gaming revenue during the quarter. The company maintained a strong cash position of €41.8 million at the end of March 2025, with €37 million available for operations. Additionally, Codere Online generated €2.2 million in cash flow during Q1 while maintaining a negative net working capital position of €18 million.
Customer Growth Metrics
Customer engagement metrics showed positive trends during the quarter, with average monthly active users increasing by 13% to 161,300 across all markets. First-time depositors grew impressively by 21% to 91,000, indicating successful customer acquisition efforts. However, the average monthly spend per active customer dropped 5% to €118, suggesting changes in customer behavior or the acquisition of more casual players.
Mexican Market Leadership
Mexico emerged as the standout performer in Codere Online’s portfolio, with net gaming revenue growing 15% year-over-year to €30.5 million. This growth is particularly impressive considering the significant headwinds from currency devaluation, as the Mexican peso weakened by more than 16% during the quarter. On a constant currency basis, Mexico’s revenue growth would have reached an exceptional 34%.
The company’s customer base in Mexico expanded substantially, with average monthly active users increasing by 31% compared to the previous year. This strong user growth helped offset lower player values than in previous periods, as noted by Chief Financial Officer Oscar Iglesias.
“Going forward, we will continue to explore and optimise all sources of customer traffic and otherwise continue to believe that the opportunity to invest and grow in Mexico is still very compelling,” Iglesias stated during an earnings call.
Challenges in Spanish and Colombian Markets
While Mexico delivered strong results, Codere Online faced challenges in other key markets. Revenue in Spain declined slightly by 2% to €21.9 million despite a 4% increase in average monthly active customers. This suggests decreased average spending per user in what has traditionally been one of the company’s core markets.
The company’s “other” segment, which includes operations in Latin American markets such as Colombia, Panama, and Argentina, recorded a 10% revenue increase to €4.5 million. However, this positive figure masks significant challenges in Colombia, where Codere Online has been forced to reconsider its strategy due to new taxation policies.
Colombian Market Setbacks
In February 2025, Colombia implemented a new value-added tax (VAT) regime for gambling operations, setting a 19% tax rate on player deposits. This regulatory change prompted Codere Online to significantly reduce its activities in the Colombian market just as it was beginning to gain traction.
“We had to stop our efforts over there,” CEO Aviv Sher explained. “We started to see good results in Colombia. But I think everybody knows what happened in Colombia in the past few months with the VAT regime that they introduced.”
The company now describes its Colombian strategy as “TBD” (to be determined) while it evaluates options to mitigate the impact of the new tax structure.
Strategic Pivot to Panama
In response to the challenges in Colombia, Codere Online is redirecting some of its focus toward Panama, where recent performance has shown promising signs. The company has implemented product improvements and new developments to enhance its market position in Panama.
“We do see some improvement in Panama in recent months. So, we have some expectations to mitigate some of the issues that we have in Colombia with Panama,” Sher stated. CFO Iglesias added, “Incrementally, Panama is performing well, and we made some product changes, some – there’s been some new developments there that have helped us make our product more attractive.”
Company Background and Market Position
Founded in 2014 as part of the broader Codere Group, Codere Online operates as a leading online sports betting and casino operator with a strong presence in Spain and several high-growth Latin American markets. The company made history on December 1, 2021, when it became the first publicly traded gaming operator in Latin America, listing on Nasdaq under the ticker symbol CDRO.
Codere Online benefits from its association with the Codere Group, which has been a prominent player in the private gaming industry for over four decades. The parent company’s physical presence across seven countries-Spain and Italy in Europe, plus Argentina, Colombia, Mexico, Panama, and Uruguay in Latin America-provides Codere Online with valuable operational insights and brand recognition.
The company has established strategic partnerships to enhance its market position, serving as an official betting partner of Real Madrid in Latin America and Rayados de Monterrey in Mexico. These partnerships help reinforce Codere Online’s brand credibility and visibility in key markets.
April 2025: Navigating Legal and Regulatory Challenges
As we previously reported, April 2025 proved a critical month for Codere Online as it confronted dual challenges of investor litigation and renewed Nasdaq compliance pressures. The company faced heightened scrutiny from shareholders following allegations of securities fraud tied to delayed financial disclosures and internal control deficiencies first identified in late 2024. A class-action lawsuit, spearheaded by investors, alleged that Codere Online had failed to maintain adequate accounting practices and transparency, particularly regarding its IT systems and cybersecurity protocols. Plaintiffs argued these shortcomings misled investors about the company’s financial health, contributing to stock volatility after the resignation of its previous auditor in December 2024.
To address these legal risks, Codere Online accelerated collaboration with its new auditor to finalize the overdue 2023 annual report. By mid-April, the company disclosed substantial progress in resolving prior audit obstacles, including enhanced documentation of platform revenue reporting and upgraded internal controls for financial oversight. These efforts aimed not only to comply with Nasdaq’s requirements but also to demonstrate operational transparency to stakeholders. Meanwhile, Codere’s legal team emphasized procedural compliance in court filings, arguing that delayed disclosures stemmed from complex audit transitions rather than intentional misconduct.
Resolving the Nasdaq Delisting Threat
Parallel to legal battles, Codere Online worked to avert a second Nasdaq delisting notice in April 2025. Although the company had met the deadline for its 2023 annual report, it risked suspension for missing the cutoff for its 2024 filing. Proactively engaging Nasdaq’s Hearings Panel, Codere secured a temporary stay on trading suspension by outlining a dual-track strategy: leveraging audit progress for 2023 while concurrently preparing the 2024 report. CFO Oscar Iglesias highlighted that much of the 2023 audit groundwork had been completed under the previous auditor, enabling the new auditor to prioritize addressing prior IT governance gaps.
By late April, Codere’s investor communications emphasized “no material changes” to its financials beyond disclosed currency impacts, a stance bolstered by the preliminary Q1 2025 results showing sustained Mexican growth. This transparency, coupled with a stock rebound following the April compliance update, helped stabilize investor sentiment. The company’s pledge to file the 2024 report by the end of May-ahead of any hearing date-positioned it to fully resolve listing concerns by mid-2025.
Future Outlook and Growth Strategy
Despite the mixed results in Q1 2025, Codere Online’s management remains confident in the company’s trajectory for the remainder of the year. The company has maintained its full-year guidance of €220-230 million in net gaming revenue and €10-15 million in adjusted EBITDA.
“Based on these results, we believe that we are on track to meet our net gaming revenue outlook of €220-230 million and Adj. EBITDA outlook of €10-15 million that we provided to investors earlier this year,” stated CFO Oscar Iglesias.
Defensive Approach to Expansion
In the near term, Codere Online plans to adopt a more cautious approach to new market expansion. CEO Sher explained:
In terms of new markets, currently, we are, let’s say, staying defensive with our business plan, maybe just to mitigate a little bit with Colombia to see what’s going on over there, because it’s hurting us a little bit
The company has outlined plans to enter additional Latin American markets in the future, potentially including Chile, Peru, Puerto Rico, and Uruguay. Despite Brazil’s recent regulation of sports betting, Codere Online has indicated it will not immediately enter this market due to cultural and linguistic differences, as well as the substantial investment that would be required.
2026 World Cup Opportunity
Looking ahead to 2026, Codere Online sees the FIFA World Cup as a major growth opportunity, particularly given that Mexico will be one of the host countries. The company plans to implement a more aggressive budget approach next year to capitalize on this significant sporting event. Sher stated:
I think going forward to next year with the World Cup, we will have a more aggressive budget to be able to capitalise on this large event and to continue and maintain our position in Mexico.
Opportunities and Challenges
Codere Online’s Q1 2025 results reflect both the opportunities and challenges facing the company as it pursues growth in the competitive online gambling sector, which includes online crypto gambling. While the strong performance in Mexico demonstrates the potential of its Latin American strategy, difficulties in Spain and Colombia highlight the complex market dynamics and regulatory risks the company must navigate.
With a solid financial foundation, growing customer base, and strategic focus on key markets, Codere Online appears positioned to continue its expansion in the Latin American online gambling industry. The company’s ability to execute its growth strategy while improving profitability will be crucial as it works toward its stated mission of becoming “the leading online gaming and sports betting operator in Latin America”.
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