Grupo Codere delivers stronger Q2 as online growth drives profitability

Grupo Codere has reported another quarter of improved profitability, extending a seven-quarter run of stronger performance in its retail operations while its digital business continues to expand. The group recorded gaming revenue of €352.5 million in the second quarter of 2026, representing a 5.8% year-on-year increase. Adjusted EBITDA rose 14.1% to €57.6 million. According to the company, performance at constant exchange rates would have produced even stronger growth.

The latest results point to a broader improvement rather than dependence on a single market or one-off development. Argentina and Spain were among the strongest contributors to the wider group's performance while the online operation added further momentum. The combination of retail resilience and digital expansion has become increasingly important to Grupo Codere as the company works to improve earnings quality across its markets.

The group's retail business has continued to show measurable progress. Company data indicates that adjusted EBITDA on a last-twelve-month basis reached €197.6 million at the end of June, 22.7% above the level recorded a year earlier. This represented the seventh consecutive quarter of improvement for the retail business.

Codere Online reaches a new quarterly high

Codere Online was one of the clearest growth drivers during the period. The Nasdaq-listed business reported record quarterly net gaming revenue of €69.4 million, up 27% compared with the second quarter of 2025. IFRS revenue increased 25% to €64.4 million.

The improvement was visible across the company's principal markets. Mexico remained the largest market by net gaming revenue, generating €36.1 million, an increase of 24%. Revenue in the country reached €31.8 million, up 21% year on year. Spain delivered €27.6 million in revenue and net gaming revenue, also representing 25% growth.

Spain's growth was supported by increased player activity. Average monthly active players in the country rose 11% to 54,400. Across all Codere Online markets, average monthly active players increased 12% to 173,000. Colombia, Panama and the City of Buenos Aires combined generated €5.7 million in net gaming revenue, 54% more than in the comparable period.

These figures suggest that the online business is not simply benefiting from higher spending by an existing customer base. The increase in active players and the expansion across several markets indicate that customer acquisition and engagement are both contributing to the result.

FIFA World Cup provides an additional boost

The 2026 FIFA World Cup also had a visible impact on online activity during the quarter. Codere Online said tournament stakes reached €63 million, approximately 180% above the level recorded during the 2022 tournament. Unique users increased by about 56% excluding Colombia while nearly 40,000 new customers joined during the event.

Net gaming revenue generated around the World Cup more than doubled compared with four years earlier. The company also noted that customer-friendly sporting results created a relatively low sportsbook margin during the tournament. That distinction is important because turnover and revenue can move differently in sportsbook operations depending on event outcomes.

CEO Aviv Sher described the tournament as “an additional boost to customer activity and engagement” while emphasizing that the company's expansion was broad-based across core markets. That assessment places the World Cup in the context of a wider growth strategy rather than presenting the tournament as the sole explanation for the quarter's performance.

Profitability improves alongside investment

Codere Online also strengthened its profitability profile. Adjusted EBITDA reached €5.8 million in the second quarter, €3.5 million higher than a year earlier. The company reported net income of €5.6 million for the first half of 2026 compared with a net loss of €3.1 million in the first half of 2025.

The distinction between the online division at group level and Codere Online as the listed entity is relevant when assessing these numbers. Grupo Codere separately reported €11.8 million of adjusted EBITDA for its wider online business in the second quarter. The €5.8 million figure relates to Codere Online's own reported results.

Management has raised the full-year outlook for Codere Online. Net gaming revenue is now expected to reach between €255 million and €265 million while adjusted EBITDA is forecast at €20 million to €25 million. The revised guidance reflects confidence in the current pace of customer and revenue growth.

Strategic questions remain around ownership

Alongside the operating results, strategic issues surrounding Grupo Codere remain a subject of market attention. Earlier in 2026, media reports said the company had engaged Jefferies and Macquarie Capital in a strategic review that could potentially lead to a sale. Reports suggested an indicative valuation above €2 billion, although such figures were presented as market expectations rather than a completed transaction or confirmed final valuation.

The ownership structure of the group has evolved following previous financial restructuring. Codere's current ownership is associated with an investment consortium that took control as part of the restructuring process. Codere Online, meanwhile, has operated as a separately listed Nasdaq company since its business combination and listing in 2021. These corporate arrangements are relevant to any discussion of future strategic alternatives because the interests and structures of the retail group and listed online operation are not identical.

No definitive sale should be assumed from the reported strategic review. Any potential transaction would remain subject to commercial negotiations, valuation considerations and the required corporate and regulatory processes.

Lottomatica and CIRSA reshape the Spanish market

Competitive dynamics in Spain are also changing. Lottomatica and CIRSA announced in September 2026 that they had agreed an all-share combination under which CIRSA would be absorbed into Lottomatica. The companies said the enlarged group would create the world's second-largest listed gaming and sports betting operator, behind Flutter Entertainment, with completion expected in the second quarter of 2027 subject to shareholder and regulatory approvals.

The transaction is expected to produce a significantly larger operator spanning Italy, Spain and Latin American markets. The combined business is projected to have approximately €2 billion of pro forma adjusted EBITDA and could generate substantial synergies.

For Grupo Codere, the development changes the competitive landscape without necessarily determining its own strategic path. CIRSA has historically been an important rival in Spain and the creation of a larger Lottomatica-led group could increase competitive pressure across retail gaming, betting and digital channels.

At the same time, the transaction may reinforce the importance of scale, technology investment and geographic diversification across the sector. Grupo Codere's progress in its online business therefore becomes particularly significant as operators compete for customers across increasingly digital markets.

What the latest numbers mean for Grupo Codere

The second-quarter results present a picture of a company that is improving both revenue and profitability while continuing to develop its online capabilities. The strongest signals include higher group gaming revenue, faster adjusted EBITDA growth, continued retail improvement and a record quarter for Codere Online.

The figures also show why management is placing increasing emphasis on digital expansion. Mexico and Spain continue to provide substantial scale while smaller markets are growing at a faster percentage rate. The rise in active players indicates that the business is expanding its customer base rather than relying exclusively on increased monetization from established users.

However, the outlook remains influenced by factors including currency movements, customer-friendly sportsbook results, regulatory conditions and competitive intensity. For that reason, quarterly performance should be assessed alongside the company's longer-term strategic development.

Conclusion

Grupo Codere enters the second half of 2026 with stronger operating momentum than it had a year earlier. Its €352.5 million in second-quarter gaming revenue and €57.6 million in adjusted EBITDA underline the progress being made across the broader business while seven consecutive quarters of retail profitability improvement provide evidence of sustained operational momentum.

The online business is arguably the most important part of the group's growth story. Codere Online's record €69.4 million in quarterly net gaming revenue, increasing player activity and improved earnings demonstrate the commercial potential of its digital strategy. The 2026 FIFA World Cup accelerated engagement, but the underlying performance across Spain, Mexico and other markets suggests that growth extends beyond a single sporting event.

At the same time, Grupo Codere faces a changing competitive and corporate environment. Reports concerning a strategic review and possible sale remain matters for market scrutiny rather than evidence of a completed transaction, while the planned Lottomatica and CIRSA combination is set to create a significantly larger rival in Spain and international markets.

Taken together, the latest results position Grupo Codere as a business with improving profitability, expanding digital reach and a more constructive near-term outlook. The next stage will depend on whether the company can sustain this momentum while navigating competitive pressures, strategic decisions and the evolving structure of the European and Latin American gaming markets.

FAQs

What did Grupo Codere report for Q2 2026?
Grupo Codere reported gaming revenue of €352.5 million in the second quarter of 2026, up 5.8% year on year. Adjusted EBITDA increased 14.1% to €57.6 million.

How did Codere Online perform in Q2 2026?
Codere Online reported record net gaming revenue of €69.4 million, representing 27% growth compared with Q2 2025. IFRS revenue increased 25% to €64.4 million.

Which market was largest for Codere Online?
Mexico was the largest market for Codere Online by net gaming revenue in the second quarter. NGR reached €36.1 million, up 24% year on year.

How did Spain perform for Codere Online?
Spain generated €27.6 million in both revenue and net gaming revenue during the quarter, representing a 25% increase. Average monthly active players rose 11% to 54,400.

Did the FIFA World Cup affect Codere Online?
Yes. Codere Online reported stronger customer activity during the tournament, with stakes reaching €63 million and unique users rising by about 56% excluding Colombia.

Has Codere Online become profitable?
Codere Online reported adjusted EBITDA of €5.8 million in Q2 2026. For the first half of 2026, it recorded net income of €5.6 million compared with a net loss of €3.1 million in H1 2025.

What is Codere Online's 2026 guidance?
Management expects full-year net gaming revenue of €255 million to €265 million and adjusted EBITDA of €20 million to €25 million.

Is Grupo Codere being sold?
A strategic review and possible sale have been reported by media outlets, including reports that Jefferies and Macquarie Capital were involved. A potential transaction should not be treated as completed unless formally announced and concluded.

What is happening with Lottomatica and CIRSA?
Lottomatica and CIRSA have agreed an all-share combination in which CIRSA would be absorbed by Lottomatica. Completion is expected in Q2 2027, subject to shareholder and regulatory approvals.

Why is Grupo Codere's online growth important?
Online growth gives Grupo Codere an additional source of revenue and customer engagement while supporting the group's broader diversification. Stronger digital performance may also help the company compete more effectively as the gaming market becomes increasingly technology-driven.