Codere Online Chief Financial Officer Marcus Arildsson says the company is constantly assessing new expansion opportunities, but only in markets with “the right ingredients”.
Speaking to iGB after the operator’s FY25 results on Friday, Arildsson says the company is seeking to further expand within existing markets like Spain and Mexico.
He also confirmed Codere Online was assessing potential expansion into new markets, if the environment is right.
“Looking at other markets, we have had discussions and we’ve looked at things over the last couple of months,” Arildsson tells iGB. “But it needs to be an opportunity that we find has all the right ingredients, meaning we need to have budget, we need to have local partners, there needs to be a regulation that suits us.
“Also, there needs to be a market environment where we think we can have an impact now and get to a meaningful market share. I would say we’re cautious, but we’re looking at options to expanding to other geographies.”
Record NGR in Q4 for Codere Online
Last week the operator reported a record full-year NGR of €224.1 million, marking a 6% year-on-year increase.
The business currently operates in five markets. Mexico and Spain performance powered the period’s growth and offset an 18% decline in its “other” segment, which includes Colombia, Panama and Argentina.
It reported consequential growth in its core Mexico and Spain markets, despite navigating somewhat challenging regulatory environments.
Brazil not ‘an exact fit’ for Codere Online
According to Codere Online Director of Investor Relations and Communications Guillermo Lancha, the company’s core focus for expansion is the potential for a return on investment.
For this reason, the operator has steered away from entering the newly regulated Brazilian market, where it believes a “substantial amount of resources” would be required to launch.
“If at some point we have those resources and we have the structure, we would of course consider [an entry],” Lancha adds.
“But I think for now we have to be realistic. Our core markets are Mexico and Spain, and with the cash that we have right now and also at the point in the cycle where we are starting to generate cash, it’s not the right time to get into a significant market like Brazil. It’s also a new language, so it’s not the exact fit in our model right now.”
Colombia VAT affected Codere Online’s revenue
In February last year, the Colombian government introduced a 19% value-added tax (VAT) on deposits.
But this was suspended on 29 January. Speaking to iGB, Arildsson says the VAT “took a few million” off Codere Online’s FY25 revenue, although he remains hopeful that its suspension could lead to stronger performance this year.
“This year, our contribution from that market in our budget is modest,” Arildsson adds. “So let’s see how things pan out. Maybe Colombia can even help this year in reaching the budget and not subtract from the overall picture.
“When will we be ready to sort of step on the gas, so to speak, now in Colombia? Well, we also have [a general] election, so we have to see a little bit how things evolve. We’re a little bit in a wait-and-see mode. Obviously, we’re excited that volumes are better during 2026, so that’s great. Players are coming back, so that is good news.”
Overall, he appears positive on the market: “We’re seeing some positive trends in the business, but to really make a sort of commitment to invest more in that market, I think we want to see a little bit more certainty and get a little bit more clarity around what the what the future is going to hold for us and for the sector.”
Original article: https://igamingbusiness.com/strategy/codere-online-marcus-arildsson-organic-expansion-latam/
