Codere Online reported a significant rise in net gaming revenue (NGR) for the fiscal year 2025, primarily driven by performance in Mexico. The company disclosed these figures on Thursday, revealing that its NGR reached €224.1 million for the year ending December 31, 2025, marking a 6% increase compared to €212 million in 2024. Despite this growth, the company faced a net loss of €1.8 million, contrasting with a net income of €3.9 million the previous year. The results underscore the importance of the Mexican market amid ongoing regulatory uncertainties and increased taxation, an issue of concern for operators in the jurisdiction.
Mexico emerged as a pivotal market for Codere Online, achieving a 12% year-on-year growth in NGR, accompanied by a 38% rise in average monthly active players, reaching 88,700. The company also reported modest growth in Spain, its second-largest market, with a 3% revenue increase from €87.7 million to €90.5 million. However, these gains were partially offset by an 18% revenue decline in other markets, including Colombia, Panama, and Argentina. Codere Online’s performance aligned with its fiscal year guidance, projecting NGR between €220 million and €230 million and adjusted EBITDA ranging from €10 million to €15 million. For 2026, the company anticipates NGR between €235 million and €245 million, with adjusted EBITDA expected to be between €15 million and €20 million.
Marcus Arildsson, who assumed the role of Chief Financial Officer in November, expressed confidence in meeting these targets, citing strong trends in both Mexico and Spain. The fourth quarter of 2025 proved particularly successful for Codere Online, with the company reporting its highest-ever quarterly NGR of €60.7 million, up 15% from the previous year. The quarter’s growth was largely driven by Mexico, where NGR rose 31% to €32.8 million, with average monthly active players reaching 98,800, marking a 43% increase.
Codere Online CEO Aviv Sher highlighted the achievement of 100,000 active players in Mexico during December, positioning the company advantageously for the upcoming World Cup, which Mexico will co-host. The firm’s adjusted EBITDA for the fourth quarter was €6.7 million, significantly above the prior year’s fourth quarter, enabling Codere Online to reach the top end of its 2025 financial projections.
Despite these positive indicators, the outlook for the Mexican market remains complex due to regulatory uncertainties. The Mexican government has yet to modernize its gambling laws, which are nearly 80 years old. Although a legislative overhaul has been anticipated, progress has been sluggish, and the recent tax increase on gambling activities to 50% has added another layer of complexity for operators.
During a post-earnings investor call, CEO Sher noted the lack of progress on regulatory reform, attributing delays to the government’s focus on addressing other pressing issues, such as cartel-related violence. Sher expressed frustration over stalled conversations with the government, noting the increased taxation as a temporary measure rather than a comprehensive regulatory solution. He indicated that while there is hope for renewed legislative activity in the near future, the completion of a modern regulatory framework remains uncertain.
Looking ahead, Codere Online is actively monitoring the situation in Mexico, particularly as the World Cup approaches, which is expected to boost online gambling activity. The company remains hopeful for regulatory improvements that could facilitate further growth in this key market. However, until a new regulatory framework is established, operators like Codere Online must navigate the existing challenges while capitalizing on market opportunities. The company’s next steps involve preparing for potential regulation changes and adjusting strategies to maintain momentum in its core markets.