After entering into a business combination agreement with DD3 Acquisition Corp., online sports betting and igaming firm Codere Online has reported strong revenue trends in key global markets for the second quarter.
In June, the publicly traded special purpose acquisition company and the online gaming subsidiary of casino operator Codere Group agreed to a deal.
Codere Online will become a public company and trade on the Nasdaq stock exchange in the United States as a result of the $350 million deal.
Oscar Iglesias, the Codere Group’s current global head of corporate development, who will become chief financial officer once the project is completed, said: “We are excited about the continued growth of Codere Online and look forward to building on that momentum as a publicly traded company.
“The consummation of the business combination will happen a few months later than what we were expecting when we announced the deal, and we now expect that this will happen in Q4 2021.”
Total net gaming revenue for the six months ended June 30, 2021, was €41.7 million, up 33 percent from €31.4 million, helped along by a 43 percent increase in Q2 to €21 million (2020: €14.7 million).
NGR climbed 23 percent, 108 percent, and 181 percent quarterly in Spain, Mexico, and Colombia, respectively, to €12.6 million (Q2 2020: €10.3 million), €6.4 million (Q2 2020: €3.1 million), and €1.4 million (Q2 2020: €500,000). The ‘other’ component of the business fell by 29 percent to €600,000 from €800,000.
Revenue rose 19 percent, 69 percent, and 134 percent in the first half of the year in Spain, Mexico, and Colombia, respectively, to €25.6 million (Q2 2020: €21.5 million), €12.8 million (Q2 2020: €7.6 million), and €2.2 million (Q2 2020: €900,000). ‘Other’ dropped 25 percent to €1 million from €1.3 million.
Adaption to new market
Moshe Edree, who presently works as a non-employee independent contractor but will soon join Codere Online as managing director, explained: “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.”