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]
ere Online Luxembourg(CDRO) - 2024 Q2 - Quarterly Report