Codere Online reports 43% revenue uptick ahead of SPAC merger
Spanish operator more than doubles Q2 NGR in Mexico and Colombia and gears up for combination with DD3 Acquisition Corp II
Codere Online has posted a 43% year-on-year rise in Q2 net gaming revenue (NGR) to €21m.
The upturn was driven by a 142% increase in average monthly active players to almost 67,000 during a positive comparative period due to the Covid-19 disruption in Q2 of last year.
The operator’s domestic Spanish market made up the bulk of Q2 revenue at €12.6m amid a 23% annual rise.
But the most impressive growth came across Latam, where Mexico rose by 108% to generate €6.4m of GGR and Colombia increased by 181% to contribute €1.4m.
Average monthly active players also jumped by triple digits in both countries, climbing 163% in Mexico and 253% in Colombia.
Codere Online has been spun out of the wider Codere business and is expected to go public in the US in Q4 2021 via a combination with SPAC DD3 Acquisition Corp II, after which time its shares will trade on Nasdaq under the CDRO ticker symbol.
The operator now expects to generate NGR of between €81m and €86m for full year 2021.
Codere Online MD Moshe Edree said the Q2 revenue growth was achieved despite the introduction of newly enforced marketing and bonus restrictions in the Spanish online gambling market.
“Nonetheless, the company has adapted to this new environment and generated substantial revenue growth,” said Edree.
“In Mexico, our second largest market, we more than doubled our NGR, partially due to the impact from Covid on sporting events in 2020, but also on the back of our differentiated omni-channel offering to customers.
“Additionally, since we migrated our Mexican online platform in early March, our systems are better prepared to manage the higher customer volume and will offer customers a better, more reliable user experience.”
“We continue to expand our footprint across Latin America and are eager to deploy our comprehensive marketing strategy once the business combination with DD3 is completed,” he added.
Overall online gross gambling revenue in the Spanish market increased by 3.4% year-on-year to €216m for Q2 2021 but fell by 10% quarter-on-quarter.