Codere Online reported “better-than-expected” fourth-quarter and full-year 2022 results despite negative cash flow during the year. The company’s net gaming income (NGR) increased by 48% to €122.9 million for the full year 2022. However, Codere reported a negative cash flow of €46 million ($49.1 million) .
“We are reporting better than expected Q4 and full year 2022 performance,” said Moshe Edree, former CEO of Codere Online. “This success is a testament to our team’s dedication and focus on delivering an unrivaled online gaming experience for our customers.”
Looking at NGR, Edree noted the “effectiveness of our growth strategy and our ability to successfully roll out marketing spend” across Codere Online’s operating locations.
Edree stepped down as CEO on Wednesday, March 1, and current COO Aviv Sher will assume the role. Edree will still serve as executive vice chairman of the board.
Oscar Iglesias, CFO of Codere Online, added: “We are pleased to have exceeded our 2022 net gaming revenue outlook of €115m to €120m and deliver on our commitment to investors.”
Several changes to Codere Online’s business structure took place during 2022, including the sale of its Italian subsidiary on December 30 last year.
Codere Online’s fourth quarter results
Looking at Codere Online’s Q4 results, the company reported a 70% increase in NGR, from €22.2 million in 2021 to €37.7 million in 2022. The company attributed this to strong performances in Mexico and Spain.
However, the net loss for the quarter was reported at €17.4 million. Total revenue for the quarter was €35.6 million. Marketing expenses increased to €31.2 million. This is a significant difference of 111.2% compared to Q4 2021, when marketing spend was €14.8 million.
Codere Online attributed its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 4th quarter of 2022 – which increased 122.4% year-on-year to €14.5 million – to the increase in its expenses with marketing.
Full year results
Going back to full year results, Codere Online reported a net loss of €45.9 million. However, this was a 32.5% improvement over the €68m loss in 2021.
Marketing expenses increased by 78% in 2022 compared to the previous year, with an expense of 96.9 million euros in 2022, compared to 54.4 million euros in 2021. EBITDA for FY22 was a loss of €50.3 million, compared to a loss of €23.8 million in 2021.
Codere Online’s projections for 2023
Codere Online also provided estimates for this year. NGR for the year is projected to be between €140m and €150m, while adjusted EBITDA is estimated at between -€20m to -€30m.
The company said it intends to launch operations in the Argentine province of Córdoba, while continuing to seek licenses in Buenos Aires and Mendoza. Iglesias said Codere Online was looking forward to establishing a presence in Argentina.
“We remain very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress to launch operations in several new regions this year,” he said.
“We are confident in our ability to execute our plans and continue to deliver sustainable growth for our shareholders,” added Iglesias.
