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Codere Posts Record Online Profits Driven by World Cup Surge: A Comprehensive Breakdown

By jili tutorial · September 11, 2026

Codere Posts Record Online Profits Driven by World Cup Surge: A Comprehensive Breakdown

Executive Summary: A Quarter of Records and Strategic Shifts

Grupo Codere has announced its seventh consecutive quarter of improved profitability, fueled by exceptional growth in its online division and a powerful boost from the 2026 FIFA World Cup. This performance marks a significant milestone for the Spanish-headquartered gaming operator, which has undergone substantial financial restructuring in recent years. The results not only showcase the strength of Codere’s digital transformation but also signal growing investor confidence as the group explores potential sale options.

In the second quarter of 2026, Codere’s group gaming revenue reached €352.5 million (£302.8 million), representing a 5.8% increase compared to approximately €333 million in Q2 2025. Adjusted EBITDA surged 14.1% year-on-year, climbing from roughly €50.5 million to €57.6 million. The company attributed this improvement to robust performances in Argentina and Spain, alongside the standout growth of its Nasdaq-listed online arm, Codere Online.

The World Cup Catalyst: How Football Fueled Digital Growth

Tournament Stakes Soar 180% Above 2022 Levels

The 2026 FIFA World Cup emerged as the single biggest driver of customer acquisition and engagement for Codere Online during the quarter. Tournament-related stakes hit €63 million—a staggering 180% increase compared to the 2022 World Cup. This surge was accompanied by a 56% rise in unique users (excluding Colombia), demonstrating the tournament’s ability to attract both new and returning players.

During the World Cup period, Codere Online acquired nearly 40,000 new customers. Net gaming revenue (NGR) from the tournament more than doubled compared to 2022 levels, even though “customer friendly results” produced a low sportsbook margin. This suggests that while payouts were higher, the sheer volume of betting activity more than compensated for the tighter margins.

Broader Growth Beyond the World Cup

Aviv Sher, CEO of Codere Online, emphasized that while the World Cup provided “an additional boost to customer activity and engagement,” the growth was broad-based across all core markets. This distinction is important: the World Cup amplified existing momentum rather than creating it artificially. The operator’s underlying strength in Spain, Mexico, and emerging Latin American markets ensured that growth wasn’t dependent solely on a single sporting event.

Codere Online: A Record-Breaking Quarter in Detail

Net Gaming Revenue Hits All-Time High

Codere Online delivered its strongest quarter ever, with net gaming revenue (NGR) reaching €69.4 million—a 27% increase year-on-year from €54.8 million. Under IFRS accounting standards, revenue rose 25% to €64.4 million. This performance was driven by strong customer acquisition and increased engagement across all key territories.

Spain: Steady Growth in a Mature Market

Spain, a core market for Codere Online, saw NGR climb 25% to €27.6 million. Average monthly active players in the country increased by 11% to 54,400. This growth is particularly noteworthy given Spain’s mature online gambling market, where operators compete fiercely for market share. Codere’s ability to grow in this environment reflects strong brand recognition and effective marketing strategies.

Mexico: The Division’s Largest Market

Mexico remained Codere Online’s biggest revenue generator, with NGR rising 24% to €36.1 million. Revenue in the market grew 21% to €31.8 million. Mexico’s strong performance underscores the country’s importance as a hub for online gaming in Latin America, driven by a young population, increasing smartphone penetration, and favorable regulatory conditions.

Emerging Markets: High-Growth Potential

The combined markets of Colombia, Panama, and Argentina delivered NGR of €5.7 million, representing a 54% year-on-year increase. While these markets are smaller in absolute terms, their growth rates highlight Codere Online’s successful expansion strategy in Latin America. The operator now has a diversified geographic footprint that reduces reliance on any single country.

User Engagement Metrics

Across the entire Codere Online business, average monthly active players increased by 12% to 173,000. This growth in active users, combined with higher spending per user, drove the record NGR figures. The operator’s ability to convert new customers from the World Cup into regular players will be a key metric to watch in coming quarters.

Financial Health: Profitability and Cash Position

Codere Online’s Q2 adjusted EBITDA reached €5.8 million, up €2.3 million year-on-year. Despite this strong operating performance, the division reported a quarterly net loss of €1.4 million. However, importantly, Codere Online returned to first-half net profit after losing €3.1 million in H1 2025. This turnaround—generating €5.6 million in net profit for H1 2026—demonstrates the company’s improving trajectory.

CFO Marcus Arildsson noted that the stronger profitability had been achieved while the company continued to invest in growth. This balance between short-term profitability and long-term investment is critical for online gaming operators, who must constantly spend on technology, marketing, and customer acquisition to remain competitive.

Cash Position and Debt Profile

Codere Online ended June 2026 with €62.6 million in cash and no financial debt. This strong balance sheet provides significant financial flexibility. The company can pursue organic growth initiatives, explore strategic acquisitions, or weather potential market downturns without the burden of debt servicing. For investors, this zero-debt position with substantial cash reserves is a highly attractive characteristic.

Revised Full-Year Guidance

Buoyed by this record quarter, Codere Online’s management raised its full-year NGR guidance to €255 million–€265 million (up from previous guidance). Adjusted EBITDA guidance was also upgraded to €20 million–€25 million. These upward revisions signal management’s confidence in sustained momentum, even as the World Cup tailwind fades.

Grupo Codere: The Bigger Picture

Land-Based Operations Hold Steady

While Codere Online grabbed headlines, Grupo Codere’s land-based operations in Argentina and Spain were described as “strong,” contributing to the overall group performance. These traditional casinos and gaming venues provide steady cash flow and geographic diversification, even as the industry shifts toward online channels.

The Debt Restructuring: A Turning Point

In January 2026, Codere reached a landmark agreement with creditors that slashed its debt load by approximately 95%, from nearly €2 billion to €195 million. This restructuring was essential for the company’s survival and positioned it for renewed growth. The dramatically reduced debt burden freed up cash for investment and improved the group’s financial stability.

Ownership Structure and Strategic Review

Codere is now owned by a broad consortium of investment funds that took control following the previous restructuring. These investors have already separated Codere Online from the land-based business, with the digital arm listing independently on Nasdaq in December 2021. This structure allows the online division to access capital markets directly while the parent company focuses on operational turnaround.

In Q1 2026, Codere’s shareholders hired investment banks Jefferies and Macquarie to evaluate possible transactions, including an outright sale of the group at a reported target valuation of around €2 billion. This valuation has been scrutinized by analysts given Codere’s recent restructuring history. The Q2 results, particularly Codere Online’s strong performance, may bolster the investment case for the wider business.

Market Context: Competitive Landscape and Strategic Implications

The CIRSA-Lottomatica Merger: A Game-Changer

Pressure for Codere to update the market on its strategic review has been building since Lottomatica announced an all-share merger with Codere’s main Spanish rival, CIRSA. The deal values CIRSA at €2.8 billion (€24 per share), with its majority shareholder Blackstone becoming the largest investor in the enlarged group with a 24% holding.

Upon completion—expected in Q2 2027—Lottomatica will become the second-largest listed online betting and gaming company globally, behind only Flutter Entertainment. The enlarged entity will hold leading positions in Spain and Italy across casinos, gaming machines, sports betting, and online gambling. This consolidation creates a formidable competitor and raises the stakes for Codere’s own strategic options.

Codere’s Position in a Consolidating Market

Against this new competitive backdrop, Codere has not yet revealed whether its advisers have found a buyer or received an offer matching its €2 billion valuation. The timing of any deal is complicated by the separate ownership and public listing of Codere Online. Potential buyers must consider how to structure an acquisition that accounts for the digital subsidiary’s independence.

Investors will watch closely when Nasdaq opens at 2:30 PM UK time to see how the market reacts to the broader group’s results announcement. A positive response could strengthen Codere’s negotiating position and potentially justify its valuation expectations.

Key Takeaways for Investors and Industry Observers

  1. World Cup Effect Is Real but Not the Whole Story: While the tournament drove exceptional customer acquisition, Codere’s underlying trends in Spain, Mexico, and Latin America remain strong even outside major sporting events.

  2. Online Division Is Becoming Self-Sustaining: Codere Online’s return to first-half net profit, combined with zero debt and €62.6 million in cash, positions it as a standalone growth story.

  3. Group Restructuring Is Working: Seven consecutive quarters of improved profitability demonstrate that Codere’s financial overhaul is delivering results.

  4. Strategic Options Remain Open: The Jefferies and Macquarie mandate, combined with Codere Online’s strong performance, gives the group flexibility to pursue a sale, seek partnerships, or continue standalone growth.

  5. Competitive Pressures Are Intensifying: The CIRSA-Lottomatica merger creates a powerful rival, making Codere’s next strategic move more urgent.

Looking Ahead

Codere Online’s upgraded guidance suggests management expects continued momentum, though the World Cup boost will naturally fade. The operator will need to maintain customer engagement and acquisition rates in a competitive market. For Grupo Codere, the strategic review remains the central narrative, with investors awaiting clarity on whether a sale will materialize at the desired valuation.

The next quarterly update will be critical: it will reveal whether Codere Online can sustain growth post-World Cup and whether the group’s sale process has attracted serious interest. For now, Codere has delivered a compelling quarter that strengthens its hand in both operational and strategic terms.