Codere Digital, a firm soon to be independent from Codere, experienced a significant surge in online revenue. Their income from digital gaming soared by 33% in the initial six months of the year, reaching a total of €41.7 million. This growth was fueled by a rise in monthly active users.
Spain remains Codere Digital’s primary revenue generator, with earnings in the nation rising by 19% to €25.6 million. They also witnessed substantial expansion in Colombia, where earnings climbed by 69% to €12.8 million. Mexico exhibited the most significant increase, with earnings jumping by 134% to €2.2 million. However, earnings in other global markets declined by 25%, from €1.3 million to €1 million.
The number of individuals engaging with Codere Digital games on a monthly basis also surged by 64%, from 41,100 to 67,400. This growth was observed across all regions, with Spain experiencing a 42% increase, Mexico a 68% increase, Colombia a 131% increase, and other regions a 174% increase.
In the second quarter, Codere Digital continued to deliver positive outcomes, with revenue rising by 43% to €21 million. Spain was the primary contributor, with earnings increasing by 23% to €12.6 million. Mexico also saw a substantial rise, with earnings climbing by 108% to €6.4 million, and Colombia witnessed an 181% surge in earnings to €1 million.
Although there was a 29% decrease in income from other sources, reaching €600,000, earnings went up by €4 million.
Moshe Edree, Codere’s online chief executive, stated that the second-quarter results show robust revenue patterns in Spain, as well as strong growth in Latin America, with the company’s total net gambling income rising by 43% year-over-year. He added: “This performance was driven by a 142% increase in the average number of active players in the second quarter.
“Beginning in the second quarter of 2021, we started to encounter the expected regulatory challenges in the Spanish market, which restricted our capacity, as well as all online gambling operators, to provide player bonuses and other marketing activities (promotion and sponsorships). Despite this, the company has adjusted to this new environment and produced substantial revenue growth.
“In our second largest market, Mexico, our net gambling income more than doubled in the second quarter of 2021, partly due to the influence of Covid on sporting events in the second quarter of 2020, but also due to the diverse omnichannel services we offer our customers.
“Moreover, since we transferred our Mexican online platform in early March, our systems are prepared to handle larger customer volumes and will provide customers with a better and more dependable user experience.”
The total average number of monthly active players in the second quarter was 66,700, a 142% increase from the previous year.
Edree also talked about the wider operations of Codere Online, which was separated from Codere through a deal with a special purpose acquisition company (SPAC) called DD3 Acquisition Corp.
The boards of Codere and DD3 revealed in June that they had accepted the spin-off plan, as well as plans for the new company to be listed on the Nasdaq stock market in the United States.
“We continue to grow our reach in Latin America and are excited to implement our comprehensive marketing plan after the completion of the merger with DD3,” Edree stated.
“As part of this marketing plan, we have enhanced our presence in Latin America through partnerships with major soccer teams in the region, such as Monterrey in Mexico and River Plate in Argentina, with whom we signed sponsorship agreements in July.”
Codere’s reorganization agreement, announced last month, is scheduled to be finalized on November 5, which will see creditors take control of the main business through a debt-for-equity exchange.
The restructuring agreement requires the approval of noteholders as it involves changing the terms of Codere’s notes – noteholders will receive equity in Codere Holding instead of cash.
This will be done through a vote, with noteholders required to give their consent by October 18.
Assuming the agreement – which has already gained the support of a majority of creditors – is approved, it will take effect on November 5.
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