Online gambling platform Codere attributing Mexico's peso as the cause of its issues
Codere Online Reports Q2 Results and Discusses Delisting Issue
Codere Online, the online gaming company, recently held an investor call on the 31st of July, primarily focusing on their second-quarter financial results. The call served as an opportunity for the company to discuss its recent compliance with NASDAQ listing requirements and the impact of the Mexican peso devaluation on its second-quarter earnings.
During the call, Aviv Sher, the CEO of Codere Online, announced that the company has regained compliance with all NASDAQ listing requirements, putting an end to the uncertainty around Codere Online as a publicly traded company.
In terms of the financial results, Codere Online reported a net gaming revenue of €54.8 million for Q2 2025, representing a 1% increase year-over-year and 12% growth in constant currency terms. However, the devaluation of the Mexican peso significantly affected the reported losses through currency translation effects, contributing to a larger net loss in the period. Specifically, Mexico contributed €29.0 million in net gaming revenue, up 3% year-over-year and 23% in constant currency terms, but the devaluation of the Mexican peso caused the revenue to remain flat year-over-year, as opposed to increasing by 12%.
The company reported 78,000 first-time depositors, primarily from Mexico, during the second quarter. Despite the increase in active users by 7%, the spending by these users decreased by 5% during the same period. The devaluation of the Mexican peso was not mentioned as a factor in the increase in active users or the decrease in spending.
Codere Online executives mentioned the devaluation of the Mexican peso during the call, highlighting it as a significant factor in the company's second-quarter earnings. The lower earnings are attributed to a 19% devaluation in the Mexican peso, which caused a €3.0 million loss from exchange rates in H1 2025, whereas H1 2024 had a €4.8 million exchange rate gain.
The call was an investor call, meaning it was intended for individuals or entities interested in investing in Codere Online. It is important to note that the company did not provide specific financial figures for the revenue or earnings of the second quarter, beyond the statement about the devaluation's impact on revenue.
In summary, while Codere Online's revenues in Mexico and overall increased on a constant currency basis, the devaluation of the Mexican peso negatively impacted reported losses through currency translation effects, contributing to a larger net loss in the period. The compliance with NASDAQ listing requirements puts an end to the uncertainty around Codere Online as a publicly traded company. The company is now focusing on navigating the challenges posed by the Mexican peso devaluation and continuing to grow its user base and revenue.
- The impact of the Mexican peso devaluation was a significant topic during the investor call for Codere Online, a company focusing on online gaming, as the devaluation negatively affected their reported losses through currency translation effects, contributing to a larger net loss in the second quarter.
- In the realm of technology and business, Codere Online executives are currently concentrating on navigating the challenges posed by the Mexican peso devaluation and continuing to grow their user base and revenue, while also ensuring compliance with NASDAQ listing requirements for their publicly traded company.
