Friday, April 01, 2022
Codere Online (CDRO)
Sticking to Its Expansion Roadmap
Codere Online Luxembourg SA is an operator in online gaming and online sports betting in Latin America. The company offers online casino through its website and mobile application.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid earnings debut. Codere Online released financial results for Q4 and full-year 2021, its first earnings release as a public company. Net gaming revenue was €22.2 million in the quarter compared with €22.3 million in the prior-year period. The lack of growth was due primarily to soft revenue in Spain, adversely affected by recent regulations on marketing and advertising. Adj. EBITDA was negative in the quarter at a €6.5 million loss.
Encouraging metrics. The company’s average monthly active users in Q4 were 76,365 up 18% from 64,980 in the prior year period. In addition, First Time Deposits (FTDs) increased a significant 48% in the same period to 64,359 from 42,450. We believe these metrics are a positive reflection of management’s strategy to drive engagement in growth markets …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
