Codere Online announced that due to the newly implemented 19% gambling VAT in Colombia impacting profit margins, the company has decided to exit the market. CEO Avi Shalel stated that the local growth momentum was "completely disrupted by tax policies".
In contrast, the Mexican market has become a pillar. Despite the peso depreciating by more than 16%, Codere achieved a 15% year-on-year revenue growth in this market, and even as high as 34% when calculated at a constant exchange rate. The company stated that Mexico remains "the most attractive investment destination".
In Q1 this year, Codere Online's net gambling revenue grew by 8% year-on-year, reaching 57 million euros, with Mexico contributing the most; the Spanish market slightly declined to 21.9 million euros, while "other markets" (including Panama, Argentina, etc.) saw a revenue increase of 10%.
Panama is seen as a future focus. According to CFO Iglesias, product adjustments have led to a market recovery, which is expected to compensate for the losses caused by the withdrawal from Colombia.
Facing uncertainties, the company said it will adopt a more "defensive" expansion strategy, but is optimistic about the traffic bonus brought by the 2026 World Cup (some events in Mexico).
Another point of focus is Codere's NASDAQ listing status issue. The company has already submitted its 2024 report and expects to complete the supplementary submission by the end of May, thus avoiding the risk of delisting.
