Codere Online CEO Aviv Sher is defending the company's disciplined investment in core markets Spain and Mexico after what the operator described as record Q1 2026 results. According to the company's earnings release, Codere Online posted net gaming revenue of €64.4 million and adjusted EBITDA of €6 million, both characterized as quarterly records.
"The returns on disciplined investment in your core markets are often underestimated," Sher told iGB. "We don't need to chase new geographies to generate growth."
The numbers behind the strategy
Mexico NGR rose 13% to €34.6 million. Spain NGR climbed 16% to €25.5 million. Average monthly players in Spain increased 13% year-on-year to 59,000 in Q1, according to the company's earnings release.
Sher attributed Spain's growth to a "redesign of our welcome bonus to target cross-sell players (sports betting and casino), a higher-value and more profitable segment." He also cited improved product and customer experience.
"Spain remains competitive, but it's also a highly regulated environment, which tends to reward operators who can win on experience, trust, and retention," Sher said.
Why not expand?
Codere Online operates in five countries: Spain, Mexico, Argentina, Colombia, and Panama. Sher said the company sees better risk-adjusted returns in deepening those markets rather than entering new ones.
That contrasts with some competitors who spread resources across multiple new geographies. Sher argues that approach often dilutes investment and produces lower returns per market.
What players in Spain and Mexico get
The strategy means players in those two markets should see continued improvements. Sher pointed to the welcome bonus redesign as an example of how focused investment translates to better products.
"Major sporting events are among the most powerful customer acquisition moments in our industry," Sher said. The 2026 World Cup could be a catalyst, with all five of Codere Online's operating nations participating.
Sher stopped short of guaranteeing a revenue spike, framing the World Cup as an acquisition opportunity rather than a certain windfall.
Tax outlook in Spain
Spanish trade body JDigital has said no gambling tax hikes are expected in Spain in the short-to-medium term. That assessment comes from a single source and has not been independently confirmed, so the tax outlook warrants continued monitoring. Any change in policy could affect operator margins and player offers.
What remains unclear
Codere Online did not break out World Cup revenue expectations or historical event impact. The company also did not provide player-level data on retention or lifetime value from the welcome bonus redesign, and current market share figures for Spain and Mexico were not disclosed.
What happens next
Codere Online is scheduled to report Q2 2026 results in August. The 2026 World Cup runs from June to July, meaning Q3 results will provide the first measurable read on tournament impact. Sher's core-market strategy will face its most significant test when those numbers arrive.
