Codere Online achieves profitability driven by robust performance in Mexico

(AsiaGameHub) –   Codere Online has reported continued growth across the business for Q1 2026, notably in Mexico ahead of this summer’s 2026 FIFA World Cup.

The Nasdaq-listed company’s Q1 results were released amid speculation about a possible sale of Grupo Codere, the Madrid-based omnichannel gaming group that holds a major stake in Codere Online.

Total revenue for Codere Online—which, like Grupo Codere, is headquartered in Spain but primarily serves Spanish-speaking Latin American markets—amounted to €60.3 million (£54.7 million), up 16% from the €57 million recorded in Q1 2025.

The company also showed strong performance in profitability metrics: adjusted EBITDA increased from €1.8 million to €6 million, while net income turned from a €700,000 loss into a €7 million profit.

Marcus Arildsson, Chief Financial Officer of Codere Online, described the first quarter as “a clear step forward in profitability,” highlighting both the rise in adjusted EBITDA and the return to net profit.

The year has started strongly for Codere, providing leadership with confidence after the company posted a €1.8 million net loss at the end of 2025.

Mexico leads the way for Codere

On a market-by-market basis, Mexico stood out for Codere Online, with net gaming revenue (NGR) rising 13% to €34.6 million (from €30.5 million), driving total revenue of €30.4 million from the country.

This strong result comes ahead of the 2026 World Cup, which will be co-hosted by Mexico alongside the United States and Canada.

Public interest in the tournament could significantly boost customer engagement for the company; however, Mexico presents challenges such as a ‘sin tax’ on gambling introduced last year.

In its home market of Spain, net gaming revenue grew 16% year-over-year, from €21.9 million to €25.5 million, with overall revenue also reaching €25.5 million.

The World Cup may serve as an effective customer acquisition tool in Spain as well, though the market faces regulatory hurdles including marketing restrictions and renewed political debate over reinstating a ban on betting bonuses.

Beyond Spain and Mexico, Codere Online’s other core markets are Argentina, Colombia, and Panama. Combined, revenue from these “other” markets totaled €4.4 million, reflecting a slight 2% decline compared to €4.5 million in the prior year.

Casino operations accounted for the majority of revenue—63%—while sportsbook contributed the remaining 37%.

Revenue growth was driven by a 14% year-over-year increase in the active customer base, which now stands at 183 million and has grown steadily over the past two years.

Codere Online has also provided its full-year outlook, projecting revenue between €235–245 million and EBITDA of €15–20 million. This would represent steady improvement over FY2025 figures of €224.1 million and €13.8 million, respectively.

Shares in the company have risen more than 7% during the first half-hour of trading on the Nasdaq Stock Exchange, reaching $9.72 (£7.13).

This follows a positive trend over the past 12 months, during which the share price has increased by nearly one-fifth.

Founded effectively in 2021 following a spin-off from Grupo Codere, Codere Online went public on the Nasdaq that same year through a merger with SPAC DD3 Acquisition Corp II.

Although Grupo Codere itself is not publicly traded, it will still benefit from Codere Online’s strong financial performance—not only due to revenue contributions but also because of the positive image this creates for the parent group as it reportedly seeks potential buyers.

A rumored valuation of $2 billion initially drew attention when discussed, but positive results from a company in which Grupo Codere holds a majority stake can only enhance its appeal.

Aviv Sher, Chief Executive Officer of Codere Online, stated: “We delivered a very strong start to 2026, achieving record quarterly net gaming revenue of €64.4 million, up 13% year-on-year.

“In Spain, performance accelerated meaningfully, with net gaming revenue growing 16%, reflecting a clear continuation and acceleration of the positive trends we began to see in the second half of 2025, particularly in the fourth quarter.

“Mexico also continued to deliver double-digit growth, supported by a 20% increase in the number of active customers.”