Codere reports an EBITDA increase while continuing to explore a potential sale

(AsiaGameHub) –   Codere Group has released its full-year 2025 financial results, recording growth across both its retail and online business lines as the company evaluates a possible $2 billion (£1.73 billion) sale.

Group gross win – defined as the total sum the company has won (and its customers have lost) over a set period – hit €1.36 billion, marking a 3.2% year-over-year increase (13% when adjusted for constant currency). At the same time, adjusted EBITDA climbed 26% to €225.1 million, underscoring improved profitability following its recent balance sheet restructuring.

Its strong performance was powered by core retail markets, most notably Spain and Argentina. In Spain, operational efficiency gains and “optimisation of its machine fleet” lifted margins, while Argentina delivered robust growth despite currency headwinds, backed by ongoing investment in gaming floors and equipment.

Codere’s online division, which is publicly traded on the Nasdaq Capital Market in New York, also cemented its position as a key growth pillar, posting higher profitability and supporting the group’s wider omnichannel strategy across Spanish-speaking markets.

The company invested €121.2 million in 2025, with most funds allocated to maintaining and upgrading existing operations, and ended the year with €118.6 million in cash following three consecutive quarters of positive cash generation.

After net debt fell sharply following a late 2024 debt-for-equity restructuring, the group’s current leverage ratio stands at around 1.1x EBITDA – giving it a more stable financial foundation as it drafts its new 2026-2030 strategic plan.

The Madrid-headquartered firm cut its total debt from roughly €1.4 billion to under €200 million as a result of the restructuring.

However, market attention is increasingly shifting to the company’s ownership structure. Codere is reportedly weighing a sale valued at around $2 billion, a move that would come just one year after the aforementioned restructuring handed control to a broad group of bondholders and institutional creditors.

Uncertainties continue to surround Codere

Speaking on the iGaming Daily podcast, SBC’s Editor at Large, Ted Menmuir, said of the potential sale: “It seems clear that the narrative being pushed here is that whoever buys this company will acquire the second largest gambling brand in Spain with both a retail and online presence. They will also gain a foothold in the markets of Mexico, Uruguay, Argentina and Colombia.

“However, I believe you have to take Codere’s past track record into account. This is a company that was saddled with €2 billion of debt over the last ten years. It only just recently concluded its capital renegotiation with bondholders, which cut that debt load by 95%, so there is still no clear consensus on what Codere has actually proven it can deliver long term.

“If you look at this from a high level, it is obvious that some form of private equity fund would be the most likely buyer. On the European front, Lottomatica is a company that has talked of leading global expansion, but I don’t think they will have the appetite to take on a company that carries so many existing liabilities.” 

Questions also remain over the business’s long-term sustainability. The firm only recently emerged from an extended period of heavy debt, and potential buyers may weigh that troubled history against its improved current financial profile.

As noted earlier, Codere Online recently reported revenue growth – a 6% annual increase to €224 million in 2025, fueled by rising player numbers. 

However, its future outlook is clouded by rising tax rates in key markets such as Mexico and Colombia, which could squeeze margins going forward.

A 19% VAT penalty has been imposed on online gambling gross gaming revenue (GGR) in Colombia. Meanwhile, the Mexican Senate approved a 2026 fiscal package that raises the Special Tax on Production and Services (IEPS) on online gambling and land-based casinos from 30% to 50% of GGR.

Taxation in Spain has also been a major point of discussion, and it remains to be seen going forward whether Codere can find a buyer willing to pay $2 billion for the firm and potentially compete with Cirsa, the industry’s largest player in Spain.