Codere Online’s Q4 2024 Results Show Resilience Amid Challenges
Codere Online Financial Overview
Codere Online has unveiled its financial results for the final quarter of the year. The results showcase significant achievements despite challenges faced across the gaming industry. In the fourth quarter alone, the Company reported total revenue reaching €50.0 million, with net gaming revenue climbing to €52.6 million. This marks a commendable 5% increase compared to the same quarter last year, highlighting the Company's robust growth trajectory.
Key Financial Highlights
The 2024 financial year also presents impressive statistics, especially considering Codere Online's net income, which—excluding non-cash variations of public warrants—stood at €6.8 million. This is a striking recovery from a loss of €4.0 million the previous year, solidifying positive momentum for the Company. Furthermore, as of the end of December 2024, the firm holds a total cash position of €40.5 million, facilitating future investments and financial stability.
Future Outlook for 2025
Looking ahead, Codere Online anticipates a net gaming revenue of between €220-230 million for 2025, alongside an expected Adjusted EBITDA ranging from €10-15 million. This outlook demonstrates the Company’s commitment to sustaining growth while navigating market fluctuations.
Shareholder Confidence Boost
In a move to enhance shareholder value, Codere Online's Board of Directors has proposed a share buyback plan that allows for repurchase up to $5.0 million of its stock, pending shareholder approval. This initiative reflects their confidence in future cash flow generation and aims to provide a safety net for investors.
Recent Company Developments
Compliance and Nasdaq Listing
On January 16, the Company presented its plan to regain compliance at a Nasdaq hearings panel. Subsequently, the panel granted Codere Online an extension to maintain its listing, a critical factor for investor confidence and market stability. Adhering to the compliance requirements, the Company aims to file its 2023 annual report by May 12, 2025.
Impact of New Regulations in Colombia
In response to the recent introduction of a 19% value-added tax on online deposits in Colombia, effective from February 21, 2025, management is actively assessing the operational implications. Despite this challenge, the Company's strategic positioning in key markets will serve as a buffer against potential negative impacts.
Management Insights
CEO Aviv Sher expressed satisfaction over the fourth-quarter outcomes, emphasizing the effective strategies implemented, which led to the notable increase in net gaming revenue. In regions like Spain, where revenue saw a 10% increase, Codere Online demonstrates a solid market presence and consumer engagement. CFO Oscar Iglesias further reinforced the importance of providing a strong outlook for 2025 while acknowledging the hurdles of currency fluctuations that have affected their operations, particularly in Mexico, where currency devaluation remained an issue.
Understanding Codere Online
Founded in 2014, Codere Online operates under the umbrella of Codere Group, a renowned presence in both online and physical gaming industries across several countries including Spain and Latin America. The firm's advancement in digital platforms underscores its commitment to providing a seamless gaming experience through its sophisticated website and mobile applications.
Frequently Asked Questions
What were Codere Online's total revenues in Q4 2024?
Codere Online reported total revenues of €50.0 million in Q4 2024.
How did the net income change from 2023 to 2024?
The net income improved from a loss of €4.0 million in 2023 to a gain of €6.8 million in 2024.
What is the outlook for Codere Online in 2025?
Codere Online anticipates a net gaming revenue of €220-230 million and Adjusted EBITDA between €10-15 million for 2025.
What is the significance of the share buyback plan?
The share buyback plan, allowing up to $5.0 million in repurchases, aims to boost shareholder value and assert confidence in future business performance.
How is Codere Online addressing new tax regulations in Colombia?
Codere Online is assessing the operational impact of a new 19% value-added tax on online deposits and developing strategies to mitigate risks.
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