Online gaming company Codere attributes Mexican peso troubles for their issues
In a recent investor call held on 31 July, Codere Online, a Latin American company operating in the iGaming and sports betting industries, shared its second-quarter earnings for 2021. The call, led by David McKee of COMPLETE iGAMING, was held in a context where the Mexican peso's devaluation was a topic of discussion.
The devaluation of the Mexican peso, which stood at 19%, caused Codere Online's revenue to remain flat year-over-year, instead of increasing by the anticipated 12%. This was a significant factor mentioned by Codere Online executives during the call.
However, the company did manage to grow its net gaming revenue and expand its active customer portfolio in Mexico during the quarter. In fact, the number of active users on Codere Online increased by 7%. Despite a decrease in user spending by 5%, the company reported 78,000 first-time depositors, primarily from Mexico.
CEO Aviv Sher announced that Codere Online has regained compliance with all NASDAQ listing requirements, putting an end to the uncertainty surrounding the company as a publicly traded entity.
Despite the challenges posed by the Mexican peso's devaluation, Codere Online showed resilience in its operational growth in the Mexican market. The company's Chief Financial Officer, Oscar Iglesias, acknowledged the negative impact of the currency depreciation on the company's second-quarter earnings.
The investor call provided valuable insights into Codere Online's performance amidst the challenging economic conditions in Mexico. As the company continues to navigate these circumstances, it remains committed to delivering value to its shareholders and customers alike.
Technology played a crucial role in Codere Online's efforts to adapt to the challenging economic conditions in Mexico, as the company leveraged advanced analytics and digital marketing strategies to attract new customers and retain existing ones.
Investing in innovative technology solutions was a strategic decision for Codere Online, as it aimed to maintain a competitive edge in the highly competitive sports betting and iGaming industries, particularly in the Latin American market.
