Codere Online reported its financial results for the second quarter ended June 30, 2021, with total net gaming revenue of €21.0 million, an increase of 43% compared to Q2 2020. Mexico and Spain net gaming revenue was €6.4m and €12.6m, respectively, an increase of 108% and 23% versus €3.1m and €10.3m in Q2 2020.
In June 2021, Codere Online entered into a definitive business combination agreement with DD3 Acquisition Corp. II, a publicly-traded special purpose acquisition company, that upon consummation will result in Codere Online becoming a public company.
The online gaming subsidiary of casino operator Codere Group entered into the deal with the publicly traded special purpose acquisition company in June. The transaction, valued at approximately US$350m, will result in Codere Online becoming a public company and trading on the US Nasdaq stock market.
Moshe Edree, Managing Director of Codere Online, stated: “Our second quarter results reflect the strong revenue trends in Spain and substantial growth achieved across Latin America, with a 43% year-on-year increase in our total net gaming revenue. This performance was driven by a 142% increase in average active players in the second quarter.”
“Beginning in the second quarter of 2021, we started to face the expected regulatory headwinds in the Spanish market that have limited our (and all online gaming operators) ability to offer player bonuses and other marketing activities (advertising and sponsorships). Nonetheless, the Company has adapted to this new environment and generated substantial revenue growth. In Mexico, our second largest market, we more than doubled our net gaming revenues in Q2 2021, partially due to the impact from Covid on sporting events in Q2 2020, but also on the back of our differentiated omnichannel offering to our customers. Additionally, since we migrated our Mexican online platform in early March, our systems are better prepared to manage the higher customer volume and will offer customers a better, more reliable, user experience,” Edree continued.
Edree concluded: “We continue to expand our footprint across Latin America and are eager to deploy our comprehensive marketing strategy once the business combination with DD3 is completed. As part of this marketing strategy, we have already strengthened our presence in Latin America through alliances with key football teams in the region, like Rayados in Mexico and River Plate in Argentina, with whom we signed sponsorship agreements in July.”
Codere Online currently operates in the markets of Spain, Italy, Mexico, Colombia, and Panama and expects to start operating in Buenos Aires, Argentina, in late 2021.
Source: GMB
