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 ...

Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou's quarterly revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [12] Market Performance - The online game business saw strong performance driven by the successful launch of TLBB Return, which exceeded revenue expectations [17] - The performance of TLBB Vintage also achieved historic highs, contributing to the overall success of the gaming segment [17] Company Strategy and Industry Competition - The company is focused on leveraging cutting-edge technologies to optimize products and enhance user experiences across its platforms [5] - Sohu is committed to generating and distributing diversified premium content while exploring greater monetization opportunities through unique IPs [7] - The company is diversifying its game offerings to include card-based RPGs, sports games, and casual games, while expanding into global markets [10] Management Commentary on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, particularly in sectors like automotive and IT services, which are experiencing pressure [19] - Despite the overall advertising market being under pressure, Sohu has managed to stabilize advertising revenue through innovative marketing campaigns [20][34] - For Q4 2025, marketing service revenues are expected to be between $15 million and $16 million, indicating a year-over-year decrease of 15%-20% [13] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million share repurchase program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management indicated that the strong Q3 results were driven by TLBB Return and that Q4 performance will depend on the new game and content activities planned [17][29] Question: AI integration within Sohu - AI is being used to improve user experience in gaming and media platforms, enhancing productivity and service offerings [22][23] Question: Insights from TLBB Return and user trends - The biggest surprise from TLBB Return was higher-than-expected user spending and stable retention rates [29] - Both TLBB Return and TLBB Vintage are experiencing steady user bases, but revenues are trending down due to fewer promotional activities planned for Q4 [31] Question: Advertising market sentiment and industry verticals - The advertising market is under pressure, particularly in the automotive sector, but Sohu is finding opportunities in consumer electronics through innovative advertising strategies [34][35]

Financial Performance Overview - Total revenues for Q3 2025 were $180 million, representing a 19% year-over-year increase and a 43% quarter-over-quarter increase [4] - Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter [4] - Online game revenues reached $162 million, up 27% year-over-year and 53% quarter-over-quarter [4] - GAAP net income attributable to Sohu.com Limited was $9 million, compared to a net loss of $16 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] - Non-GAAP net income attributable to Sohu.com Limited was also $9 million, compared to a net loss of $12 million in Q3 2024 and a net loss of $20 million in Q2 2025 [4] Business Line Performance - Sohu Media platform revenues were $17 million, down from $73 million in the same quarter last year, with an operating loss of $71 million [11] - Changyou revenues were $163 million, up from $129 million in the same quarter last year, with an operating profit of $88 million compared to $62 million in the same quarter last year [11] Market Performance - The advertising revenue showed a sequential rebound, although the overall macroeconomic situation remains challenging, particularly in sectors like auto and IT services [19][35] - The company is leveraging unique marketing campaigns to stabilize advertising revenue despite a deteriorating market [19][35] Company Strategy and Industry Competition - The company is focused on optimizing products and enhancing user experiences through technology integration and premium content generation [5][6] - Sohu is committed to diversifying its gaming portfolio, including new types of games and expanding into global markets [10] - The company is utilizing AI to improve user experience and operational efficiency, particularly in gaming and media services [22][23] Management Comments on Operating Environment and Future Outlook - Management indicated that the strong performance in Q3 was driven by the successful launch of new games, but expressed caution regarding Q4 performance due to natural declines following initial launches [17][32] - The advertising market is under pressure, but the company is finding ways to attract advertisers through innovative offerings [35] Other Important Information - As of November 13, 2025, Sohu has repurchased 7.6 million ADS for approximately $97 million, representing two-thirds of the $150 million program [10] Q&A Session Summary Question: Online game business performance and Q4 guidance - Management confirmed that Q4 performance is in line with expectations, driven by the success of TLBB Return and new servers for TLBB Vintage [17] Question: AI integration and its impact - AI is being used to enhance user experience in gaming and media services, improving productivity without focusing on large language models [22][23] Question: Surprises from TLBB Return and user trends - User spending on TLBB Return exceeded expectations, with stable user retention, but revenues are trending down as promotional activities decrease [30][32] Question: Advertising market sentiment - The overall advertising market is under pressure, particularly in the auto industry, but innovative marketing strategies are helping to stabilize revenue [35]

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]

Core Insights - Financial giants have shown a bullish sentiment towards Sea, with 47% of traders being bullish and 23% bearish, indicating a positive outlook on the stock [1] - The predicted price range for Sea over the last three months has been targeted between $120.0 and $200.0 by large investors [2] - Analysts have set an average price target of $188.0 for Sea, with various firms providing differing ratings and targets [10][11] Options Analysis - A total of 17 unusual trades were identified for Sea, with 11 puts valued at $550,337 and 6 calls valued at $334,090 [1] - The analysis of volume and open interest reveals significant liquidity and interest in Sea's options, particularly within the strike price range of $120.0 to $200.0 [3] - The snapshot of options trading indicates a mix of bullish and bearish sentiments, with notable trades including a bearish call and several puts with varying sentiments [8] Company Overview - Sea operates Southeast Asia's largest e-commerce platform, Shopee, and has expanded from its origins in gaming with Garena [9] - The company also provides financial services through SeaMoney, which includes lending, payment, digital banking, and insurance [9] - As of March 31, 2024, the founder, Forrest Xiaodong Li, holds 59.8% of voting power, while Tencent owns 18.2% of issued shares without voting power [9] Current Market Position - Sea's current trading volume stands at 3,519,593, with the stock price at $139.69, reflecting a slight decrease of -0.25% [13] - The stock is approaching oversold conditions according to RSI indicators, suggesting potential for price movement [13] - An earnings announcement is expected in 109 days, which could impact future trading and investor sentiment [13]

Core Insights - Flutter Entertainment plc reported Q3 results on November 12, highlighting strong performance in iGaming, which was offset by weakness in the sportsbook segment [1] Financial Performance - The company's EBITDA growth was noted, indicating overall financial strength despite challenges in certain areas [1] Investment Perspective - The investment philosophy focuses on identifying mispriced securities through understanding financial drivers, often revealed by DCF model valuation, allowing for a comprehensive assessment of risk-to-reward [1]

Flutter Entertainment plc ( FLUT ) reported the company’s Q3 results on the 12 th of November. The online gaming giant showed strength in iGaming, ultimately more than offset by sportsbook weakness as EBITDA growth came inI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind ...

Financial Performance - Bragg achieved a 2% year-over-year increase in Adjusted EBITDA in Q3 2025[15] - The company experienced a 5% year-over-year increase in Gross Profit in Q3 2025[15] - Bragg's revenue increased by 9% year-over-year in Q3 2025[15] - Gross Profit Margin % increased by 115 basis points year-over-year in Q3 2025[15] - Q3 2025 Adjusted EBITDA was EUR 4449 thousand, compared to EUR 4083 thousand in Q3 2024[44] Revenue Growth and Diversification - U S and Brazil focus markets saw revenue growth of 86% and 80% respectively[12, 41] - Proprietary content revenue increased by 35% year-over-year, driven by U S growth[12, 30, 41] - Non-Netherlands revenue is projected to increase to 68% of all revenue in FY 2025, up from 51% in 2022[34, 36] Product Mix and Strategy - Proprietary content accounted for 15 7% of total revenue in Q3 2025, up from 11 9% in Q3 2024[24] - PAM & Turnkey revenue was EUR 4 7 million and represented 17 7% of total revenue in 3Q25[24] - Aggregated content revenue was 52 2% of 3Q25 revenue[24]

Financial Data and Key Metrics Changes - Group revenue increased by 17% year-over-year, while adjusted EBITDA grew by 6% in Q3 2025 [5][19] - The company reported a net loss of $789 million for the quarter, compared to a loss of $114 million in the prior year, primarily due to a non-cash impairment charge of $556 million related to regulatory changes in India [18][19] - Adjusted earnings per share grew by 29%, while loss per share increased to $3.91 from $0.58 in Q3 2024 [18] Business Line Data and Key Metrics Changes - In the US, revenue was up 9%, driven by exceptional iGaming growth of 44%, while sportsbook revenue declined by 5% [18] - International revenue increased by 21% year-over-year, with acquisitions contributing 18 percentage points to this growth [19] - iGaming performance showed strong organic growth of 10%, particularly in Turkey and Italy [12][19] Market Data and Key Metrics Changes - Average monthly players engaging with products exceeded 14 million, contributing to revenue growth [5] - The company maintained a 47% market share in net gaming revenue (NGR) in September, despite competitive pressures [11][30] - The international division's revenue reached $2.4 billion, reflecting a 21% increase, with strong performance in Turkey and Italy [19] Company Strategy and Development Direction - The company is strategically positioning FanDuel to capture emerging prediction markets with the launch of FanDuel Predicts in December [6][17] - The focus remains on state-regulated sports betting and iGaming as the most valuable long-term opportunities in the US [8] - The company plans to invest significantly in FanDuel Predicts, anticipating an incremental EBITDA cost of $40-$50 million in Q4 2025 and $200-$300 million in 2026 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying business performance despite a reduction in full-year guidance due to customer-friendly sports results [5][21] - The competitive landscape has seen heightened generosity from competitors, impacting initial NFL season performance, but management remains optimistic about long-term growth [11][30] - The company is closely monitoring the regulatory environment in India and remains engaged with policymakers regarding potential gaming tax increases in the UK [15][16][60] Other Important Information - The company completed share repurchases totaling $225 million in Q3 and plans to continue the program into 2026, with a commitment to return $5 billion over the coming years [20][21] - The integration of recent acquisitions is progressing well, with a focus on delivering synergies and enhancing the iGaming proposition [13][14] Q&A Session Summary Question: Can you elaborate on the planned investment for FanDuel Predicts? - Management expressed excitement about the product and emphasized a disciplined approach to customer acquisition, monitoring CAC to LTV dynamics closely [25][26] Question: How widespread was the competitive generosity seen at the start of the NFL season? - Management noted that while there was heightened generosity, they maintained a disciplined investment posture and were pleased with their market share performance [30][31] Question: What is the outlook for trading in September and into Q4 in the US? - Management reported strong momentum into Q4, with double-digit handle growth and a positive start to the NBA season [30][31] Question: Can you provide insights on the prediction markets and regulatory engagement? - Management highlighted extensive engagement with stakeholders and optimism about accelerating state legalization of sports betting [34][35] Question: How do you view the competitive landscape with new partnerships like ESPN and DraftKings? - Management acknowledged the competitive dynamics but emphasized their strong product offering and successful partnerships, particularly with Amazon [56]

Core Insights - Roblox's stock has surged nearly 92% over the past year, driven by a 33% increase in revenue and a 55% enhancement in the price-to-sales (P/S) multiple, reflecting strong user growth and innovative strategies [2][5] - Despite a recent pullback due to a softer-than-expected earnings report, the underlying fundamentals remain strong, with expanding user base and improving monetization initiatives indicating long-term growth potential [3][11] User & Engagement Growth - Daily Active Users (DAUs) increased by 70% year-over-year to 151.5 million, with hours engaged rising by 91%, showcasing consistent user growth [11] Financial Performance - Bookings for Q3 2025 jumped 70% year-over-year to $1.9 billion, while revenue climbed 48% year-over-year, indicating robust financial growth [11] Creator Economy Enhancements - Developer Exchange (DevEx) payouts to creators increased by 85% in Q3 2025, elevating creator earnings to over $1 billion in a 12-month period, highlighting the platform's commitment to its creator economy [11] Strategic Partnerships and Innovations - New strategic partnerships include Shopify integration for physical goods and an IP licensing platform launched in early 2025 [11] - Product innovations revealed at the Roblox Developer Conference (RDC) 2024/2025 include new AI tools, 100,000 player servers, and advancements in avatar technology [11]