Codere Online Posts Record Revenue but Faces Mexico Tax Hike
Event summary
- Codere Online reported €224.1 million in net gaming revenue for FY 2025, up 6% YoY.
- Q4 2025 saw a 31% YoY increase in Mexico revenue to €32.8 million, driven by a 43% rise in active players.
- Adjusted EBITDA reached €13.8 million for FY 2025, up from €6.4 million in 2024.
- Mexico's gaming tax rate increased from 30% to 50% effective January 2026.
- Company repurchased 391,000 shares for $2.7 million under its share buyback plan.
The big picture
Codere Online's strong financial performance in 2025 was driven by robust growth in Mexico, but the recent tax hike poses a significant challenge. The company's ability to navigate regulatory shifts while maintaining its expansion strategy will be critical for sustaining its market position. With no financial debt and a solid cash position, Codere Online is well-positioned to weather short-term headwinds, but long-term success hinges on operational efficiency and adaptability.
What we're watching
- Regulatory Impact
- How the 50% tax hike in Mexico will affect Codere Online's profitability and growth trajectory.
- Market Expansion
- Whether Codere Online can sustain its momentum in Mexico ahead of the World Cup.
- Financial Strategy
- The pace at which Codere Online will execute its share buyback plan and its impact on shareholder value.
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