Financial Data and Key Metrics Changes - The company reported net gaming revenues of €53 million for Q4 2024, a 5% increase compared to Q4 2023. In constant currency terms, net gaming revenue would have been €57 million, reflecting a 15% increase year-on-year [10][14] - Adjusted EBITDA for Q4 2024 was €1.9 million, with a total adjusted EBITDA of €6.4 million for the full year [15][16] - The company ended the year with €40 million in total cash, of which approximately €35 million was available [22] Business Line Data and Key Metrics Changes - The casino segment contributed 62% of total net gaming revenue in Q4 2024, driven by a seasonal decline in sports betting [10] - In Spain, net gaming revenue grew by 10% to €23 million, while in Mexico, it remained flat at €25 million due to currency and sports betting margin headwinds [14][20] - The number of average monthly active customers increased by 6%, with 71,000 first-time depositors in Q4 2024, up from 67,000 in Q3 2024 [11][12] Market Data and Key Metrics Changes - The Mexican peso devalued by 14% in Q4 2024, impacting net gaming revenue by approximately €3.4 million [20][22] - Despite the currency headwinds, the company reported a 16% increase in average monthly active customers in Mexico compared to Q4 2023 [21] Company Strategy and Development Direction - The company plans to implement a one-year share buyback plan for up to $5 million, reflecting confidence in its cash position and expected cash flow generation [12] - The management emphasized the attractiveness of investment opportunities in Spain and Mexico, despite the competitive landscape [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a weaker Mexican peso and new tax regulations in Colombia, which could impact future growth [24][40] - The company expects net gaming revenue for 2025 to be between €220 million and €230 million, reflecting a 6% increase at the midpoint compared to 2024 [24] Other Important Information - The company successfully transitioned to a new auditor, MaloneBailey, after the resignation of its former auditor, Marcum [7][8] - The management highlighted the importance of maintaining a balance between growth and profitability in their future strategies [25] Q&A Session Summary Question: What is the Euro assumption embedded in the 2025 guidance? - The CFO indicated that he would need to check the specific FX forecast included in the 2025 figures and follow up after the call [33] Question: Is the implied flow-through to EBITDA a function of conservatism around user acquisition investment? - The CFO noted that the upcoming Club World Cup in mid-2025 is a factor in their conservative guidance, as marketing investment is crucial for outcomes [36] Question: Have competitors shifted focus to Brazil, affecting competitive intensity in Mexico? - The CEO mentioned that while competitors have not left Mexico, some have taken a short break, providing an opportunity for the company to capitalize on [58] Question: What are the growth investment plans outside of Mexico? - The CEO stated that while they are looking at opportunities in Brazil, the focus remains on core markets where they see good ROI, and they are cautious about entering new markets [80][81] Question: What is the situation in Argentina? - The CEO expressed challenges in entering the province of Argentina, which limits growth potential, and they are actively seeking opportunities to obtain a license [84]

Codere Online Q4 2024 Earnings 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 throughout this Presentation are defined in the Defined Terms section included at the ...

Financial Data and Key Metrics Changes - The company reported net gaming revenues of €53 million for Q4 2024, a 5% increase compared to Q4 2023. In constant currency terms, this would have been €57 million, reflecting a 15% increase year-on-year [10][14][20] - Adjusted EBITDA for Q4 2024 was €1.9 million, with a total of €6.4 million for the full year, marking positive adjusted EBITDA in each quarter throughout 2024 [15][16] - The average cost per acquisition (CPA) decreased to €211, the lowest since Q4 2023, indicating improved efficiency in customer acquisition [12][48] Business Line Data and Key Metrics Changes - The casino segment contributed 62% of total net gaming revenue in Q4 2024, driven by a seasonal decline in sports betting [10] - In Spain, net gaming revenue grew by 10% to €23 million, while in Mexico, it remained flat at €25 million due to currency and sports betting margin headwinds [14][20] - The number of average monthly active customers increased by 6%, reaching nearly 70,000, which is 16% higher than Q4 2023 [21] Market Data and Key Metrics Changes - The Mexican peso devalued by 14% in Q4 2024, impacting net gaming revenue by approximately €3.4 million [20][22] - Despite the challenges in Mexico, the company remains optimistic about growth opportunities in the market, citing a strong customer base and retention strategies [21] Company Strategy and Development Direction - The company has approved a one-year share buyback plan for up to $5 million, reflecting confidence in its cash position and future cash flow generation [12] - The focus remains on core markets like Spain and Mexico, with cautious exploration of new markets such as Brazil, Peru, and Chile, where significant investments are not yet justified [80][81] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations and new taxes in Colombia, which could impact future investments [24][40] - The outlook for 2025 anticipates net gaming revenue between €220 million and €230 million, representing a 6% increase at the midpoint compared to 2024 [23][24] Other Important Information - The company successfully transitioned to a new auditor, MaloneBailey, after the unexpected resignation of its former auditor, which allowed it to meet compliance deadlines with NASDAQ [7][9] - The company ended Q4 2024 with €40 million in total cash, of which approximately €35 million was available [22] Q&A Session Summary Question: Can you share the Euro assumption embedded in the 2025 guidance? - The CFO indicated that specific FX forecasts for 2025 would be provided post-call [33] Question: Is the implied flow-through to EBITDA a function of conservatism around user acquisition investment? - The CFO noted that upcoming events like the Club World Cup could influence marketing strategies and investments [36] Question: Have competitors shifted focus to Brazil, impacting competitive intensity in Mexico? - Management suggested that some competitors may have temporarily reduced their focus on Mexico, providing an opportunity for the company [58] Question: What are the growth investment plans outside of Mexico? - The company is currently prioritizing investments in core markets where ROI is well understood, while exploring partnerships in Brazil [80][81] Question: Can you provide an update on Argentina? - Management expressed challenges in entering key provinces in Argentina, limiting growth potential in that market [83][84]

Core Insights - Codere Online reported a solid financial performance for Q4 2024, with net gaming revenue reaching €52.6 million, a 5% increase compared to Q4 2023 [2][4] - The company achieved a full-year net gaming revenue of nearly €212 million, exceeding its initial outlook of €185-200 million [4][10] - For 2025, Codere Online anticipates net gaming revenue of €220-230 million and Adjusted EBITDA of €10-15 million [4][10] Financial Performance - Q4 2024 net gaming revenue by region: - Spain: €22.8 million, up 10% from Q4 2023 - Mexico: €25.1 million, flat compared to Q4 2023 - Other regions: €4.6 million, up 10% from Q4 2023 - Total: €52.6 million, up 5% from Q4 2023 [2][4] - Full-year 2024 net gaming revenue by region: - Spain: €87.7 million, up 16% from 2023 - Mexico: €106.6 million, up 30% from 2023 - Other regions: €17.3 million, up 19% from 2023 - Total: €211.6 million, up 23% from 2023 [2][4] Operational Metrics - Average Monthly Active Players (000s) for Q4 2024: - Spain: 48.7, up 3% from Q4 2023 - Mexico: 68.9, up 17% from Q4 2023 - Other regions: 29.8, down 9% from Q4 2023 - Total: 147.5, up 6% from Q4 2023 [2][4] - Full-year 2024 average monthly active players: - Spain: 49.7, up 17% from 2023 - Mexico: 64.4, up 23% from 2023 - Other regions: 30.8, down 8% from 2023 - Total: 144.9, up 13% from 2023 [2][4] Future Outlook - The company plans to implement a share buyback program of up to $5.0 million, subject to shareholder approval, reflecting confidence in future cash flow generation [4][10] - Codere Online is assessing the impact of a new 19% value-added tax on online deposits in Colombia, effective February 21, 2025 [10]

Core Points - Codere Online has received approval from the Nasdaq Hearings Panel to continue its listing on Nasdaq, contingent upon the filing of its 2023 Annual Report by May 12, 2025 [1][2] - The Panel's decision follows a hearing on January 16, 2025, where the Company presented its plan to regain compliance with Nasdaq Listing Rule 5250(c)(1) [2] - The Company is working with a new auditor to complete the 2023 Annual Report and expects to meet the deadline set by the Panel [2] - Codere Online will release its fourth quarter 2024 results on February 20, 2025, followed by a conference call to discuss the results and provide a business update [3][4] Company Overview - Codere Online, launched in 2014, is a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services [5] - The Company operates in key markets including Spain, Mexico, Colombia, Panama, and Argentina, supported by Codere Group's physical presence in these regions [5]

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of Codere Online Luxembourg, S.A. regarding potential securities fraud or unlawful business practices by the company and its officers [1] - On December 27, 2024, Codere disclosed that Marcum LLP resigned as its independent registered public accounting firm due to their inability to complete certain audit procedures, which led to a 3.84% drop in Codere's share price, closing at $6.77 [2] - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having recovered numerous multimillion-dollar damages awards for victims of securities fraud and corporate misconduct [3]

Financial Performance - Revenue for the six months ended June 30, 2024, increased to €102,108 thousand, up 36.8% from €74,635 thousand in the same period of 2023[4] - Operating income for the period was €1,629 thousand, a significant improvement compared to an operating loss of €11,307 thousand in the prior year[4] - Net income for the period was a loss of €251 thousand, an improvement from a loss of €325 thousand in the same period last year[5] - Total revenue for the six months ended June 30, 2024, was €102,108 thousand, an increase of 36.9% compared to €74,635 thousand for the same period in 2023[67] - Operating income for the group was €1,629 thousand for the first half of 2024, compared to a loss of €11,307 thousand in the same period of 2023[67] - Net income for the period was a loss of €251 thousand, a significant improvement from a loss of €325 thousand in the first half of 2023[67] Assets and Liabilities - Total assets decreased to €71,776 thousand as of June 30, 2024, down from €74,152 thousand at the end of 2023, primarily due to a reduction in current assets[2] - Current liabilities decreased to €46,684 thousand from €52,105 thousand at the end of 2023, indicating improved liquidity management[2] - Total liabilities decreased from €47,000 thousand as of December 31, 2023, to €41,517 thousand as of June 30, 2024, primarily due to a reduction in trade payables[12] - Current assets as of June 30, 2024, totaled €62,033 thousand, compared to €65,280 thousand as of December 31, 2023, reflecting a decrease of 4.3%[69] - Total assets increased to €71,776 thousand as of June 30, 2024, from €74,152 thousand as of December 31, 2023, indicating a decrease of 5.0%[69] - Equity attributable to equity holders of the parent was €18,930 thousand as of June 30, 2024, down from €21,639 thousand at the end of 2023, a decline of 12.5%[69] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were €40,433 thousand, down from €41,278 thousand at the beginning of the period[7] - The company reported a net cash used in operating activities of €237 thousand, an improvement from €5,528 thousand used in the same period last year[7] - Cash and cash equivalents were €40,433 thousand as of June 30, 2024, compared to €41,278 thousand as of December 31, 2023[74] - Current borrowings at amortized cost decreased to €4,680 thousand as of June 30, 2024, from €5,105 thousand as of December 31, 2023[88] Operational Highlights - The company is focused on expanding its online gambling operations in Spain, Mexico, Colombia, Panama, and Argentina[9] - Codere Online is exploring new product developments and technological advancements to enhance its service offerings in the online gambling sector[9] - Online sports betting revenue reached €44,359 thousand, up 22% from €36,296 thousand year-over-year, while online casino wagering increased by 50% to €57,709 thousand from €38,339 thousand[105] - The geographical breakdown of revenues showed significant growth in Mexico, with revenues rising to €49,187 thousand from €31,959 thousand year-over-year, representing a 54% increase[106] Risks and Compliance - Codere Online is exposed to liquidity risk due to potential mismatches between financing needs and sources, including cash on balance sheet and future cash flows[128] - The company has a credit risk exposure primarily related to trade receivables and current financial assets, with no significant exposure to any single counterparty[131] - Codere Online's financial systems currently rely significantly on human intervention, and efforts are being made to reduce this reliance[124] - The company is subject to various market risks, including exchange rate risk, as its functional currency is the euro, affecting its financial assets and liabilities denominated in other currencies[125][129] - Codere Online's expected credit loss is estimated based on external risk parameters, with a loss given default of 100%[132] - The company has faced certain contingencies involving litigation and compliance, which could impact its financial condition[133] Corporate Governance - Codere Online's Board of Directors underwent changes, with new appointments made in April and June 2024, including the appointment of Daniel Valdez and Gonzaga Higuero[138][140] - The company is in advanced discussions to appoint a new independent registered public accounting firm following the resignation of Marcum due to IT control deficiencies[170] Recapitalization and Future Outlook - The company completed a recapitalization on October 15, 2024, converting over €1.2 billion of debt into equity and receiving a €60 million cash injection, reducing its debt to €190 million, approximately 0.5 times its EBITDA for 2023[167] - Codere Online's management believes the company has adequate resources to continue operations for the next twelve months, supported by a recapitalization completed on October 15, 2024[18]

Group 1 - The core viewpoint is that Codere Online (NASDAQ: CDRO) shares were upgraded from Hold to Buy due to impressive growth and profitability that the market has not fully recognized [1] - The analyst focuses on undercovered companies, maintaining a watchlist of over 50 companies across sectors such as technology, software, electronics, and energy transition [1] - The analyst has over 7 years of personal investment experience and aims to identify asymmetric investment opportunities for achieving market-beating returns [1]

Ryan Sigdahl - Craig-Hallum Capital Group Jeff Stantial - Stifel Pat McCann - NOBLE Capital Markets Operator Codere Online Luxembourg, S.A. (NASDAQ:CDRO) Q3 2024 Earnings Conference Call November 27, 2024 8:30 AM ET Company Participants Guillermo Lancha - Head, IR Aviv Sher - CEO Oscar Iglesias - CFO Conference Call Participants Thank you for standing by, and welcome to the Codere Online Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] Thank you. I'd now like to turn the call ov ...

Madrid, Spain and Tel Aviv, Israel, November 22, 2024 (GLOBE NEWSWIRE) – Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) (the “Company” or “Codere Online”) a leading online gaming operator in Spain and Latin America, today announced that it will release its third quarter 2024 results prior to 8:30AM US Eastern Time on November 27, 2024. At 8:30AM US Eastern Time on the same day, Codere Online’s management will host a conference call to discuss the results and provide a business update. The Company’s ...