Core Insights - Groupe Partouche reported a solid growth in turnover for the first half of 2025, with a 5.7% increase to €233.3 million compared to €220.6 million in the same period of 2024 [3][9] - The company is making progress towards exiting the Financière Partouche safeguard plan, with recent court approval for modifications to the plan [5] Financial Performance - The first half of 2025 showed a turnover increase of 5.7% to €233.3 million, driven by a 3.1% rise in Net Gaming Revenue (NGR) to €185.3 million [3][10] - The second quarter of 2025 turnover rose by 4.9% to €106.9 million, confirming the positive trend from the first quarter, which saw a 6.5% increase [3][9] - Gross Gaming Revenue (GGR) for the second quarter increased by 2.8% to €178.7 million, with NGR up by 2.0% to €83.1 million [4][10] Revenue Breakdown - Non-gaming activities contributed significantly, generating €24.5 million in revenue, a 15.9% increase compared to €21.1 million in Q2 2024 [4][11] - In France, GGR grew by 3.7% to €160.6 million, supported by a 2.7% increase in attendance [8] - The GGR for slot machines increased by 2.8% to €128.0 million, while electronic table games saw an 8.5% rise to €19.7 million [8] Company Overview - Groupe Partouche, established in 1973, operates 41 casinos and employs nearly 4,050 people, positioning itself as a market leader in Europe [7] - The company is listed on Euronext Paris and is known for its innovative approach to gaming [7]

Financial Data and Key Metrics Changes - The company reported net gaming revenue of €57 million for Q1 2025, an 8% increase compared to Q1 2024 [10][13] - Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA at the consolidated level [13][14] - On a constant currency basis, net gaming revenue would have been €62 million, reflecting a 17% increase year-on-year [11][14] Business Line Data and Key Metrics Changes - The casino segment contributed 61% to total net gaming revenue, driven by a 13% increase in average monthly active users [11] - In Mexico, net gaming revenue grew 15% to €30.5 million, while in Spain, it remained flat at €22 million [13][16] - The average monthly spend per active customer decreased by 5% to €118 [11] Market Data and Key Metrics Changes - The Mexican peso devalued by over 16% in Q1 2025, impacting net gaming revenue by €5 million [16] - The number of average monthly active customers in Mexico increased by 31% year-on-year to 82,000 [17] - In Spain, the number of active customers rose by 4% year-on-year, reaching 52,000 [15] Company Strategy and Development Direction - The company is focusing on optimizing customer acquisition channels, particularly in Mexico, where growth opportunities remain compelling [17] - There is an ongoing effort to adapt promotional strategies in Spain to improve customer quality and retention [15][36] - The company plans to maintain its investment in Mexico while cautiously exploring opportunities in other markets like Panama and Argentina [48][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations but expressed confidence in meeting full-year guidance for net gaming revenue between €220 million and €230 million [19] - The company expects a difficult comparison for Q2 results but anticipates less impact thereafter as they lap significant devaluation from the previous year [17] - Management is optimistic about resuming growth in Spain, supported by positive trends observed in recent months [65][66] Other Important Information - The company has initiated a share buyback plan of up to $5 million, with approximately $5 million already spent on repurchasing shares [12] - The company is currently under a mandatory monitoring period by NASDAQ but expects to resolve compliance issues soon [6][10] Q&A Session Summary Question: What is driving the decrease in customer acquisition cost despite increased user acquisition? - Management indicated that testing new traffic sources led to reduced CPA and higher first-time depositors, although the revenue impact was lower than expected [25][28] Question: What is the impact of competition on Spain's revenue growth? - Management confirmed that the reintroduction of welcome bonuses and increased competition are primary drivers for flat revenue growth in Spain [34][36] Question: How does the company view investment opportunities in other markets? - Management noted improvements in Panama and a cautious approach in Colombia, with plans to increase investment in Mexico [46][48] Question: Will Spain return to revenue growth for the rest of the year? - Management expressed confidence in resuming growth in Spain, supported by positive signals from KPIs [65][66] Question: What are the dynamics of the share repurchase program? - Management clarified that the board approved a $5 million buyback plan within a broader $10 million shareholder authorization [81][82] Question: Is there any progress on the Argentina license acquisition? - Management indicated that there has been no significant progress on the Argentina license acquisition due to pricing issues [84]

Financial Data and Key Metrics Changes - The company reported net gaming revenue of €57 million, an 8% increase compared to Q1 2024 [9][12] - Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA at the consolidated level [12][13] - On a constant currency basis, net gaming revenue would have been €62 million, reflecting a 17% increase year-on-year [10][12] Business Line Data and Key Metrics Changes - The casino segment contributed 61% to total net gaming revenue, driven by a focus on this segment and a lower sports margin in Mexico [10] - In Mexico, net gaming revenue grew 15% to €30.5 million, while in Spain, it remained flat at €22 million [12][15] - The average monthly active users increased by 13%, while the average monthly spend per active customer decreased by 5% to €118 [10][12] Market Data and Key Metrics Changes - The Mexican peso devalued by over 16% in Q1 2025, impacting net gaming revenue by €5 million [15][17] - The number of average monthly active customers in Mexico rose to 82,000, a 31% increase year-on-year [16] - In Spain, the number of active customers increased by 4% year-on-year, reaching 52,000 [14] Company Strategy and Development Direction - The company is focusing on optimizing customer acquisition channels and maintaining its market position in Mexico, which is seen as a core market with significant growth potential [16][62] - The management is adapting promotional strategies in Spain to improve customer quality and retention amid a competitive landscape [14][35] - The company plans to continue investing in Mexico while remaining cautious in other markets like Colombia and Argentina due to regulatory challenges [46][52] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by currency fluctuations but expressed confidence in meeting full-year guidance for net gaming revenue between €220 million and €230 million [19][50] - The company expects a difficult comparison for Q2 results but anticipates less impact thereafter as they lap significant devaluation from the previous year [17] - Management is optimistic about the potential for revenue growth in Spain, despite current competitive pressures [64] Other Important Information - The company has initiated a share buyback plan of up to $5 million, with approximately $5 million already spent on repurchasing shares [11][83] - The company is currently under a mandatory monitoring period by NASDAQ but has regained compliance by filing its 2023 annual report [5][6] Q&A Session Summary Question: What is driving the decrease in customer acquisition cost despite increased user acquisition? - Management indicated that testing new traffic sources led to reduced customer acquisition costs, although the revenue impact from these new customers was lower than expected [24][27] Question: What is the impact of competition on revenue growth in Spain? - Management confirmed that the reintroduction of welcome bonuses and increased competition have affected revenue growth, but they are seeing positive trends from adjusted promotional strategies [32][35] Question: Are there plans to increase investments in other markets? - Management noted improvements in Panama and a cautious approach in Colombia, with potential for increased investment in Mexico due to upcoming events [46][52] Question: Will Spain return to revenue growth for the rest of the year? - Management expressed confidence in resuming revenue growth in Spain, supported by positive KPI signals [64][66] Question: What is the rationale behind the share repurchase program? - Management explained that the board approved a $5 million buyback plan within a broader shareholder authorization, allowing flexibility in execution [82][83] Question: Any updates on the Argentina license acquisition? - Management indicated that progress remains stalled due to pricing issues, but they are still open to opportunities [86]

Financial Performance - Codere Online achieved a Q1 2025 Net Gaming Revenue (NGR) of €57 million, an 8% increase compared to Q1 2024, despite facing foreign exchange headwinds[25] - The company reported a positive Adjusted EBITDA of €18 million in Q1 2025[25] - Mexico's NGR increased by 15% year-over-year in Q1 2025, or 34% in constant currency, driven by a 31% increase in active customers[49] - Spain experienced a 2% decline in NGR in Q1 2025, but saw a 4% increase in active customers[43] Customer Acquisition and Engagement - Codere Online acquired approximately 322,000 new customer registrations with 91,000 First Time Deposits (FTDs) in Q1 2025, resulting in a 28% conversion rate[25] - The Cost per Acquisition (CPA) was €198 in Q1 2025[25] - Average Monthly Actives reached approximately 161,000 in Q1 2025, a 13% increase compared to Q1 2024[25] - Average Monthly Spend per Active was €118, a 5% decrease compared to Q1 2024[25] Financial Position - Codere Online has €42 million in total cash, with €37 million available, and a negative Net Working Capital (NWC) position of €18 million as of March 31, 2025[58] Outlook - The company projects a 2025 Net Gaming Revenue (NGR) between €220 million and €230 million and an Adjusted EBITDA between €10 million and €15 million[67]