Codere Online Luxembourg (NasdaqCM:CDRO) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Company ParticipantsMoshe Edree - Executive Vice ChairmanJeff Stantial - Managing Director of Equity ResearchAviv Sher - CEOOscar Iglesias - CFOGuillermo Lancha - Head of Investor RelationsConference Call ParticipantsRyan Sigdahl - Senior Research AnalystOperatorLadies and gentlemen, thank you for joining us and welcome to the Codere Online third quarter 2025 financial results. After today's prepared remarks, we wil ...

Codere Online Luxembourg (NasdaqCM:CDRO) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Company ParticipantsMoshe Edree - Executive Vice ChairmanJeff Stantial - Managing Director of Equity ResearchAviv Sher - CEOOscar Iglesias - CFOGuillermo Lancha - Head of Investor RelationsConference Call ParticipantsRyan Sigdahl - Senior Research AnalystOperatorLadies and gentlemen, thank you for joining us and welcome to the Codere Online Third Quarter 2025 financial results. After today's prepared remarks, we wil ...

Codere Online Luxembourg (NasdaqCM:CDRO) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Speaker3Ladies and gentlemen, thank you for joining us and welcome to the Codere Online third quarter 2025 financial results. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the conference over to Guillermo Lan ...

Codere Online Q3 2025 Earnings November 17, 2025 INFORMACION COLOR: R169 G103 B 171 R121 G192 B 0 R51 G63 B 72 Disclaimer This presentation (this "Presentation"), its contents and any information provided during the meeting to present this document are for discussion purposes only, and must not be relied upon for any purpose. This Presentation is not for release, publication or distribution, in whole or in part, in or into any jurisdiction where such distribution would be unlawful. Certain terms used throug ...

Core Insights - Codere Online reported its preliminary unaudited financial results for Q3 2025, indicating stable net gaming revenue of €51.6 million, unchanged from Q3 2024, with a total revenue of €47.7 million [1][4] - The company anticipates meeting its net gaming revenue outlook of €220-230 million and adjusted EBITDA outlook of €10-15 million for the year [4][8] Financial Performance - Net Gaming Revenue by Region: - Spain: €22.0 million, up 5% from €20.9 million in Q3 2024 - Mexico: €26.8 million, flat compared to €26.7 million in Q3 2024 - Other: €2.8 million, down 32% from €4.1 million in Q3 2024 - Total: €51.6 million, unchanged from Q3 2024 [2][4] - Average Monthly Active Players: - Spain: 50.2 thousand, up 4% from 48.5 thousand in Q3 2024 - Mexico: 88.3 thousand, up 39% from 63.7 thousand in Q3 2024 - Other: 20.7 thousand, down 34% from 31.2 thousand in Q3 2024 - Total: 159.2 thousand, up 11% from 143.4 thousand in Q3 2024 [2][4] Recent Developments - Marcus Arildsson has been appointed as the new Chief Financial Officer, succeeding Oscar Iglesias, who is expected to join the Board [3][8] - The company has repurchased $1.7 million of its shares under an increased share buyback plan, now totaling $7.5 million [8][4]

Marcus Arildsson Marcus Arildsson Luxembourg, Grand Duchy of Luxembourg, November 17, 2025 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, today announced that Marcus Arildsson has been appointed Chief Financial Officer, effective today. Mr. Arildsson will succeed Oscar Iglesias, who, as part of the previously announced transition, will assist with an orderly handover and is expected to join the Company’s Board of Direc ...

Core Points - Codere Online Luxembourg, S.A. will release its third quarter 2025 results on November 17, 2025, before 8:30 AM US Eastern Time [1] - A conference call will be held at 8:30 AM US Eastern Time on the same day to discuss the results and provide a business update [1] - Earnings press release and related materials will be available on Codere Online's website [2] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services [3] - The company was launched in 2014 as part of the Codere Group, which has a strong physical presence in Latin America [3] - Codere Group is a multinational entertainment and leisure company with over four decades of experience in the private gaming industry, operating in seven countries across Europe and Latin America [4]

Core Viewpoint - Codere Online's Chief Financial Officer, Oscar Iglesias, is stepping down for personal reasons, with his departure effective upon the completion of a transition to his successor or by December 31, 2025 [1][4] Company Transition - The Board of Directors plans to appoint Mr. Iglesias to the Board, where he previously served from 2021 to 2023, ensuring his continued involvement in the company's strategic direction [2] - The company has initiated a search for a new Chief Financial Officer to ensure a seamless transition [4] Contributions and Background - Mr. Iglesias has been with Codere Online since 2021 and has played a significant role in its growth, including leading the company through its successful public listing in 2021 via a merger with DD3 Acquisition Corp. II [3] - Prior to joining Codere Online, Mr. Iglesias spent six years at Codere Group, serving as Global Head of Corporate Development and Deputy CFO [3] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services through its website and mobile applications [5] - The company is part of Codere Group, a multinational group with a strong presence in the private gaming industry across seven countries in Europe and Latin America [6]

Financial Data and Key Metrics Changes - Consolidated net gaming revenue was $55 million, roughly flat compared to the prior year period, primarily due to the devaluation of the Mexican peso [6][9] - On a constant currency basis, net gaming revenue would have been nearly $61 million, representing a 12% increase year-over-year [6][9] - Adjusted EBITDA was positive $2.3 million in the second quarter, with a contribution of $6.3 million from the Spanish business, which is 5% above the prior year [10][11] - The company ended the quarter with €45 million in total cash, of which approximately €41 million was available [17] Business Line Data and Key Metrics Changes - The casino segment contributed 61% of total net gaming revenue, indicating a stabilization around this mix [6] - In Colombia, net gaming revenue decreased by $1.6 million, partially offset by an $800,000 increase in Panama, which reflects a doubling of net gaming revenue in that market [9][10] - In Mexico, net gaming revenue was $29 million, a 3% increase from the prior year, despite a 19% devaluation of the peso impacting overall revenue [12][13] Market Data and Key Metrics Changes - The average monthly active customers increased by 7%, while the average monthly spend per active customer decreased by 5% due to the weaker peso [6][12] - The company acquired 78,000 first-time depositors, a 7% increase from the prior year [7][12] - The Mexican peso devaluation had a $5.7 million negative impact on net gaming revenue, but on a constant currency basis, revenue would have grown by 23% [13] Company Strategy and Development Direction - The company has regained compliance with Nasdaq listing requirements, alleviating concerns about its status as a publicly traded entity [5] - Marketing investments are expected to decrease in the second half of the year, which, along with a positive outlook for net gaming revenue, is anticipated to lead to higher EBITDA generation [11][39] - The company is focusing on the Mexican market, especially with the upcoming World Cup in 2026, which is expected to drive business growth [13][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in Spain remains challenging, with no immediate changes expected in regulations [24][25] - The company is optimistic about the back half of the year, citing strong returns from existing and new players in Mexico [39] - The VAT imposed in Colombia has significantly impacted revenue, leading to a focus on maintaining breakeven operations in that market [54][55] Other Important Information - The company has repurchased approximately 106,000 shares under its buyback plan, investing around $7.7 million [7] - The company is exploring opportunities for future investments as cash flow improves, although no specific plans have been announced [58][59] Q&A Session Summary Question: Performance in Spain and Competitive Environment - Management indicated that the competitive landscape in Spain remains tough, with no expected changes in the near future [24][25] - The impact of sports seasonality was noted, with expectations for stronger performance in the upcoming quarter [26][27] Question: Marketing Initiatives in Mexico - The marketing strategy is focused on lower LTV players, with ongoing testing of various channels [30][32] - Management clarified that the strategy is not a direct response to peso devaluation but part of ongoing user acquisition efforts [31] Question: Profitability Improvement in the Back Half - Factors contributing to expected profitability include the rolling off of certain sponsorships and improved unit economics in Mexico [36][39] Question: Growth Opportunities in Other Latin American Markets - Management expressed concerns about Colombia due to the VAT impact but noted success in Panama [54][55] - The company believes its successful strategies in Mexico can be replicated in other markets, albeit with higher costs [44][46] Question: GGR and VAT Impact in Colombia - Management acknowledged significant top-line impacts due to VAT, estimating a 40% reduction in expected revenue [68] - The viability of the Colombian market under current conditions remains uncertain and would require further analysis [70] Question: Share Repurchase Strategy - Discussions regarding share repurchases are ongoing at the board level, with a focus on opportunistic buying [75]

Financial Performance - Codere Online's Q2 2025 Net Gaming Revenue (NGR) reached €54.8 million, a 1% increase compared to Q2 2024, but a 12% increase at constant FX [28] - The company achieved a positive Adjusted EBITDA of €2.3 million in Q2 2025 [28] - Spain's NGR increased by 1% in Q2 2025, reaching €22.1 million [33, 48] - Mexico's NGR increased by 3% in Q2 2025 to €29 million, but increased 23% at constant currency [33, 55] Key Performance Indicators - Average Monthly Actives were approximately 155,000 in Q2 2025, a 7% increase compared to Q2 2024 [28] - The Average Monthly Spend per Active was €118, a 5% decrease compared to Q2 2024 [28] - Codere Online had approximately 277,000 new customer registrations with 78,000 First Time Deposits (FTDs) in Q2 2025, resulting in a 28% Conversion Rate [28] - The Cost per Acquisition (CPA) was €218 in Q2 2025 [28] Outlook - Codere Online projects a 2025 Net Gaming Revenue (NGR) between €220 million and €230 million [78] - The company anticipates an Adjusted EBITDA between €10 million and €15 million for 2025 [78]