Codere Online: We’d need ‘a lot of money’ to replicate our business model in Brazil
Summary
Codere Online’s CEO Aviv Sher told analysts on the company’s H1 earnings call that, while the operator has successfully replicated its Spanish playbook in Mexico and parts of Central America, entering Brazil would require “a lot of money” and is not on the short-term agenda. The group reported growth in Mexico, steady activity across markets and portfolio expansion in customers, but faces headwinds in Colombia due to a new VAT that has driven tax burdens near 50% of revenue.
Key commercial points from the H1 results: Mexico saw a 9% rise in NGR to €59.5m helped by stronger-than-usual player activity; group NGR was up year-on-year and Q2 was broadly flat at €54.8m; Codere added roughly 277,000 registrations in Q2 with a 28% conversion rate and €218 cost per acquisition; monthly active users rose to about 155,000 (up 7% YoY). Spain remains competitive with flat NGR and the company has taken a more selective promotional approach there. Cash on hand closed at €40.7m.
Source
Source: https://igamingbusiness.com/finance/codere-online-brazil-business-model-h1/
Key Points
- • CEO Aviv Sher says replicating Codere Online’s model in Brazil would require substantial capital and is not an immediate priority.
- • Mexico remains the company’s strongest LATAM market: NGR +9% in H1 to €59.5m and active customers up significantly versus Q2 2024.
- • Group performance: overall NGR up year-on-year; Q2 NGR broadly flat at €54.8m; monthly actives rose ~7% to ~155,000.
- • Customer acquisition in Q2: ~277,000 registrations, 28% conversion rate, €218 CPA.
- • Spain’s market is competitive again after the reintroduction of welcome bonuses; Codere has tightened promotions to focus on higher-value players.
- • Colombia is a problem area after a new VAT pushed effective tax rates near 50%; operations there have been reduced to break-even levels.
- • Cash position improved to €40.7m at the end of H1, up from €35.3m at the start of the year.
Why should I read this?
Quick and dirty: if you care about LATAM betting markets or operator expansion plans, this piece tells you where Codere Online is focused (Mexico) and where it isn’t (Brazil, for now). We’ve done the slog — you get the headlines on costs, growth and the sticky VAT problem in Colombia without wading through the full results deck.
Context and relevance
The article matters for investors and industry observers tracking consolidation and market-entry strategies in LATAM. It highlights three broader trends: the capital intensity of entering large newly regulated markets (Brazil), currency and macro impacts on reported results (Mexican peso devaluation), and regulatory/tax changes that can quickly upend profitability (Colombia’s VAT). Codere’s cautious stance illustrates how operators are balancing growth in proven markets with the costs and risks of expansion.
Source
Source: https://igamingbusiness.com/finance/codere-online-brazil-business-model-h1/