Nueva Codere Back on Track as Revenue Reaches Pre-Pandemic Levels

Posted on: November 17, 2022, 10:40h. 

Last updated on: November 17, 2022, 11:11h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

Earlier this year, Spanish gaming operator Nueva Codere received praise for being one of the top 100 companies in the country. It’s living up to that hype, reporting revenue in Q3 that puts it back to where it was before COVID-19 hit.

Codere sportsbook
Betting kiosks line the wall of a Codere sportsbook. The gaming operator is achieving significant revenue improvements, now back to where it was before COVID-19. (Image: Games Magazine Brazil)

Nueva Codere reported Q3 revenue of €343.4 million (US$354.63 million), a year-on-year increase of 47.2%. Nearly all markets saw a rebound with revenue returning to pre-pandemic levels.

The closures of its markets in 2020 and 2021 had a severe impact on Codere’s retail offering. However, the lifting of all restrictions has led to a strong recovery in all regions, especially Latin America.

Back in the Saddle

Inflation-plagued Argentina saw the largest revenue increase. There, revenue jumped by 146% over last year’s result to €98.6 million (US$101.82 million). This is also 122% of pre-pandemic revenues from 2019.

Panama saw a 98% increase in revenue compared to 2019, accounting for €19.2 million (US$19.82 million) of the total. The revenue from Uruguay reached 116% of pre-pandemic levels, reaching €21 million (US$21.68 million).

Colombia achieved revenues of €5.3 million (US$5.5 million). This was 26.6% greater than the same period last year and 110% better than Q3 of 2019.

Mexico’s revenue jumped, as well, but only 44.2% to €61.4 million (US$63.4 million) compared to last year. This is still just 81.1% of the 2019 Q3 revenue. Codere attributed the slow recovery in the country to an indoor smoking ban and a mandatory, government-induced cutback on promotional restrictions.

The improvements for the company come as the average player’s spending increased by a significant amount. This despite changes in regulations in several regions on how much consumers can spend and how operators can advertise.

The European markets of Nueva Codere are also recovering, but not as quickly as most of the LatAm region. In its home country, the company saw revenue of €40.7 million (US$42.03 million) or 88% of the Q3 2019 revenue. At €68.2 million (US$70.43 million), revenue from Italy brought in 83% of the 2019 Q3 revenue.

Codere Online Swings Upward

Following a period of difficulty, Codere shareholders took control of the company last year and split off its online operations. Codere Online then went live on NASDAQ following its merger with a SPAC (special purpose acquisition company), DD3 Acquisition Corp., and the results have been beneficial.

Codere online reported “stronger than expected results” in its separate filing. These come even as net losses increased in Q3 to their highest level of the year.

The revenue for the period improved by 51% compared to last year, reaching €28.9 million (US$29.84 million). This figure represents a quarter-over-quarter increase of 5.47% against Q2 revenue of €22.4 million (US$23.13 million).

The group also reported a reduced full-year outlook of €115 million to €120 million (US$118.76 million to $123.92 million). It anticipates a considerable acceleration from the upcoming World Cup, which kicks off this weekend.