Codere Online, the Nasdaq-listed Spanish betting group, has reported strong net gaming revenue (NGR) growth for the first quarter of 2025. The company’s performance was primarily fueled by continued momentum in its key Latin American market, Mexico, while it also announced a strategic pullback in Colombia due to the impact of a new gambling VAT. Codere Online expects to pivot its focus towards Panama to help mitigate revenue loss from the Colombian market.

For the three months ending March 31, 2025, Codere Online reported total net gaming revenue (NGR) of €57 million (approximately $63.9 million). This figure represents an 8% increase year-on-year compared to €53 million posted in the first quarter of 2024, as noted in Codere Online’s earnings report on Friday, May 16, 2025. The company stated that its overall growth during the quarter was driven by continued momentum in Latin America, despite facing some FX currency headwinds during the period.

Q1 2025 Performance Driven by Mexico

Mexico continued to be Codere Online’s leading market in Q1 2025. NGR from the country reached €30.5 million during the quarter, reflecting 15% growth year-on-year. On a constant currency basis, growth in Mexico was even stronger, showing a 34% increase. Key performance indicators for Mexico demonstrated continued strength in customer acquisition and engagement, with monthly active players increasing by 31% annually to 82,000, although Chief Financial Officer Oscar Iglesias noted, as reported by iGaming Times from the earnings call, that player values were lower than in previous years. Despite this, the company continues to express optimism about further growth opportunities in the country. Codere Online CEO Aviv Sher stated, as reported by iGaming Times, that the opportunity to invest and grow in Mexico is “still very compelling,” and the company will continue to explore and optimise all sources of customer traffic.

Impact of Colombia VAT and Shift to Panama

Codere Online was impacted by new VAT rules introduced in Colombia, where a tax rate of 19% of player deposits came into force on February 21. Like other operators in the market, this led Codere Online to slow its plans and “stop efforts” in the country. CEO Aviv Sher stated, as reported by iGaming Times, that they “had to stop our efforts over there,” acknowledging that the company had started to see “good results” in Colombia before the VAT regime was introduced. Sher also stated, as reported by iGaming Times, that he expects Panama to potentially pick up some of the revenue lost from Colombia in the future, noting that he sees “some improvement in Panama in recent months” and has “some expectations to mitigate some of the issues that we have in Colombia with Panama.” He also suggested, as reported by iGaming Times, that in the coming months, investment might increase slightly in Panama, and maybe Mexico, to reach their targets. CFO Oscar Iglesias added, as reported by iGaming Times, that Colombia’s situation regarding tax mitigation is “still a TBD,” but incrementally, Panama is performing well, with product changes and new developments there helping to make their product more attractive.

Overall Growth Strategy and Outlook

Discussing the overall growth strategy and outlook, CEO Aviv Sher stated, as reported by iGaming Times, that the operator will be “defensive” with its wider growth plans for now, perhaps just to mitigate the impact from Colombia, as it is “hurting us a little bit.” However, he highlighted the upcoming football World Cup next year (2026), which is partly being hosted in Mexico, as a key opportunity. Sher stated, as reported by iGaming Times, that going forward to next year with the World Cup, they will have a “more aggressive budget to be able to capitalise on this large event and to continue and maintain our position in Mexico.”

Financial Performance and Cash Position

Looking at overall financials, in Spain, NGR was €21.9 million, a 2% decrease year-on-year compared to €22.3 million recorded during Q1 2024, despite average monthly active customers rising by 4% from the previous year, reaching 52,000. Management indicated, as reported by iGaming Times, that the figures reflect a “settled” performance amid a shifting regulatory environment in Spain, with Codere benefiting from its established retail and digital footprint. While operating metrics showed some improvement, Codere Online reported a net loss of €0.7 million in Q1 2025, compared to a net profit of €3.4 million in the first quarter of 2024. The net loss was primarily attributed to interest expenses, whereas in Q1 2024, the group drew interest income. EBITDA increased 44% year-on-year to €1.3 million, and adjusted EBITDA was 6% higher at €1.8 million for the period, reflecting an improvement in operational efficiency. The company held €42 million in cash and equivalents at the end of the quarter, described as enhancing its financial stability. It also completed $0.5 million in share repurchases under its existing $5 million share buyback authorisation.

Reaffirming Full-Year Guidance

Leadership is maintaining its full-year guidance for 2025 following the Q1 results. Codere Online continues to forecast NGR for the full year between €220 million and €230 million, and an adjusted EBITDA of between €10 million and €15 million. Both are in line with previously stated guidance. CFO Oscar Iglesias expressed satisfaction with the Q1 results, as reported by iGaming Times, stating that he was “very pleased with our performance in Mexico and the underlying trends in local currency” and believes the company is on track to meet its targets for the year.

Update on Nasdaq Listing Status

The Q1 update also provided an update on the company’s Nasdaq listing status. Nasdaq had threatened to delist Codere Online in November 2024 for not meeting its rules for filing updates with the SEC. The company was granted an extension by the Nasdaq hearings panel in January 2025 after failing to file its 2023 annual report (Form 20-F) on time. Nasdaq confirmed in February that the operator would keep its listing if it filed its 2023 annual report on or before May 12. Codere Online met this deadline for the 2023 report. However, the company has not filed its 2024 report on time and is expecting to receive another delisting notice as a result. CEO Aviv Sher stated, as reported by iGaming Times, that they will be appealing this new delisting determination and requesting both a new hearing panel and a further stay of any trading suspension. He added, as reported by iGaming Times, that they expect to file the 2024 annual report by the end of May, so they would expect to regain compliance with Nasdaq listing requirements ahead of any hearing actually taking place. Sher conveyed, as reported by iGaming Times, that while they may still have “a couple of noisy weeks ahead of us,” they expect to finally be putting this issue behind them soon and are looking forward to getting back to business as usual.

In conclusion, Codere Online’s first-quarter 2025 results show robust NGR growth driven by Mexico, but the impact of the Colombia VAT has necessitated a strategic shift towards Panama. Despite a net loss in the quarter, operational efficiency improved, and the company remains confident in its 2025 targets and strategic focus, including leveraging the 2026 World Cup opportunity in Mexico, while navigating the ongoing issues with its Nasdaq listing.