Codere Online Luxembourg Q4 Earnings Call Highlights

Core Insights - The company reported a strong finish to 2025, achieving record annual net gaming revenue (NGR) and improved profitability, particularly in Mexico and Spain [3][5] - For Q4, the company achieved NGR of EUR 60.7 million, a 15% year-over-year increase, marking the highest quarterly level in its history [2][5] - Adjusted EBITDA for Q4 was EUR 6.7 million, reflecting an approximately 11% margin, a significant improvement from less than 4% in the prior year [5][6] Financial Performance - Codere Online posted record annual NGR of EUR 224 million and Adjusted EBITDA of EUR 13.8 million for the full year, more than double the previous year [2][5] - The company ended 2025 with EUR 50 million in cash, with approximately EUR 45 million available, and negative net working capital of EUR 22 million [4][11] - Marketing expenses in Q4 were EUR 21.4 million, slightly lower than the previous year, and other operating expenses were in line with NGR growth [6] Customer Metrics - Average monthly active customers reached about 177,000 in Q4, a 20% increase year-over-year, with average monthly spend per active customer at EUR 114 [7][8] - The company reported 89,000 first-time depositors (FTDs) in Q4 at an average cost per acquisition of EUR 166, the lowest since early 2023 [8] - Active customers in Mexico grew to around 99,000 in Q4, up from 69,000 a year earlier, with the company exceeding 100,000 active customers in December for the first time [8] Market Outlook - For 2026, the company guided NGR to a range of EUR 235 million to EUR 245 million and Adjusted EBITDA to EUR 15 million to EUR 20 million, assuming marketing investment similar to 2025 [4][13] - Management noted potential risks from tax increases in Mexico and regulatory uncertainties but expressed confidence in mitigating impacts through operational efficiencies [4][14] - The company launched a poker app in Mexico and is preparing a "quiet launch" of bingo, aimed at supporting customer retention [15]