Financial Data and Key Metrics Changes - The company reported EUR 52 million in net gaming revenue for Q3 2025, which was flat compared to the prior year, impacted by unfavorable foreign exchange effects and a low sports betting margin [5][10] - Adjusted EBITDA was positive EUR 2.9 million, nearly doubling from the prior year, driven by a EUR 4 million reduction in marketing spend [11][12] - On a constant currency basis, net gaming revenue would have grown by 3% [12] Business Line Data and Key Metrics Changes - The casino segment contributed 65% to total net gaming revenue, which was 5 percentage points above normal levels, while sports betting revenue was negatively impacted [6][10] - The average monthly active customers increased by 11%, but average monthly spend per active customer decreased by 10% due to currency devaluation [8][12] - The company acquired 85,000 first-time depositors (FTDs), a 26% increase year-over-year, with the lowest cost per acquisition (CPA) since Q1 2023 at EUR 167 [8][12] Market Data and Key Metrics Changes - In Spain, net gaming revenue was EUR 22 million, a 5% increase from the prior year, driven by higher spend per active customer and a 4% increase in active customers [13] - In Mexico, net gaming revenue remained flat at EUR 27 million, with a nearly 5% devaluation of the peso impacting results; however, on a constant currency basis, revenue would have grown by 5% [14] - The company noted a decline in net gaming revenue from Colombia, impacted by a value-added tax on deposits [10][11] Company Strategy and Development Direction - The company plans to increase its share buyback program from $5 million to $7.5 million, reflecting confidence in the business outlook [9] - The management is focused on optimizing customer acquisition strategies, particularly in Mexico, while also preparing for potential impacts from a proposed increase in gaming tax rates [15][16] - The company is monitoring regulatory changes in Spain and Colombia, with a cautious approach to future investments in Colombia due to unfavorable tax conditions [49][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a re-acceleration of net gaming revenue in Q4 2025, with growth expected to continue into 2026 [6][18] - The management acknowledged challenges posed by the proposed tax increase in Mexico but remains confident in the long-term potential of the market [16][25] - The company is also exploring the use of AI tools to enhance customer experience, although current implementations have not yet met expectations [60][62] Other Important Information - The company ended Q3 2025 with EUR 48 million in total cash, with EUR 43 million available [17] - The management reiterated guidance for 2025, expecting net gaming revenue between EUR 220 million and EUR 230 million, and adjusted EBITDA in the range of EUR 10-15 million [18] Q&A Session Summary Question: Can you share thoughts on mitigating higher taxes in Mexico? - Management is reaching out to partners to explore ways to mitigate the impact of the tax increase, which is expected to be approved soon [24][25] Question: Have you been impacted by recent AML crackdowns in Mexico? - Management stated they have not been directly impacted and continue to operate within regulatory standards [28][30] Question: What is the strategy regarding customer acquisition costs? - Management noted that lower CPA has been associated with lower player value, and they are continuously optimizing acquisition strategies [34] Question: How is the marketing strategy evolving in Spain? - Management reported positive trends in KPIs in Spain and is optimistic about the business outlook following regulatory changes [42][44] Question: What are the expectations regarding VAT in Colombia? - Management is monitoring the situation closely, with the current VAT being a significant challenge for profitability [48][52]

Codere Online Luxembourg (NasdaqCM:CDRO) Q3 2025 Earnings Call November 17, 2025 08:30 AM ET Company ParticipantsMoshe Edree - Executive Vice ChairmanJeff Stantial - Managing Director of Equity ResearchAviv Sher - CEOOscar Iglesias - CFOGuillermo Lancha - Head of Investor RelationsConference Call ParticipantsRyan Sigdahl - Senior Research AnalystOperatorLadies and gentlemen, thank you for joining us and welcome to the Codere Online Third Quarter 2025 financial results. After today's prepared remarks, we wil ...

Core Insights - Flutter Entertainment reported a revenue of $3.79 billion for the quarter ended September 2025, reflecting a year-over-year increase of 16.8% [1] - The company's EPS was $1.64, significantly higher than the $0.43 reported in the same quarter last year, resulting in an EPS surprise of +1161.54% [1] - Revenue fell short of the Zacks Consensus Estimate of $3.86 billion, indicating a surprise of -1.65% [1] Financial Performance Metrics - International revenue was $1.9 billion, below the average estimate of $2.42 billion [4] - U.S. revenue reached $1.37 billion, slightly lower than the estimated $1.44 billion [4] - U.S. iGaming revenue was $530 million, exceeding the estimate of $515.17 million [4] - U.S. Sportsbook revenue was $783 million, compared to the average estimate of $840.37 million [4] - Other U.S. revenue was $55 million, below the estimate of $71.33 million [4] - International revenue from other regions was $229 million, surpassing the estimate of $211.55 million [4] - International Sportsbook revenue was $982 million, lower than the average estimate of $1.05 billion [4] - International iGaming revenue was $1.37 billion, slightly above the estimate of $1.34 billion [4] - International Other revenue was $75 million, exceeding the estimate of $66.86 million [4] - U.S. Sportsbook stakes totaled $10.65 billion, slightly above the estimate of $10.59 billion [4] - Revenue from Brazil was $87 million, below the estimate of $97.07 million [4] - Revenue from Central and Eastern Europe was $151 million, closely matching the estimate of $151.4 million [4] Stock Performance - Flutter's shares have returned -7.2% over the past month, contrasting with the Zacks S&P 500 composite's +4.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Flutter, the world's largest online betting company, has significantly reduced its full-year profit growth forecast due to a prolonged winning streak by gamblers, which has led to increased payouts [1] Company Summary - Flutter's revised profit growth forecast indicates a challenging financial outlook for the company, primarily driven by the impact of higher payouts to gamblers [1] Industry Summary - The online betting industry is experiencing fluctuations in profitability as a result of changing gambler behavior, particularly during winning streaks that can strain company finances [1]

Core Insights - DraftKings reported a significant revenue miss and a larger-than-expected loss for Q3, leading management to cut full-year forecasts for both revenue and EBITDA [1][16] - Despite the challenges, the company is optimistic about future growth, particularly with new partnerships and upcoming sports events [22][34] Financial Performance - DraftKings experienced a 10% handle growth in major sports last quarter, which increased to 13% for NFL and nearly 20% for NBA this year [4][3] - The company faced around $400 million in outcome headwinds this year, primarily affecting Q3 results, but anticipates a potential rebound in Q4 [17][19] Strategic Partnerships - The partnership with ESPN is expected to significantly enhance DraftKings' market presence and customer engagement [2][7] - The company has established agreements with NBC Universal and Amazon, positioning itself strongly in the sports betting landscape [7][8] Market Dynamics - DraftKings is focusing on customer acquisition and expanding its market share, particularly in states like Missouri where it plans to launch soon [19][12] - The company believes that the legal and regulated sports betting market provides a safer environment compared to illegal markets, which can lead to organized crime [26][31] Industry Challenges - DraftKings acknowledges the competitive landscape, particularly from prediction markets, but believes its comprehensive sportsbook offerings will maintain its market share [14][13] - The company is aware of the potential impact of betting scandals on consumer confidence but emphasizes the importance of regulation in maintaining game integrity [24][30]

Core Insights - The new regulation from the Consumer Financial Protection Bureau (CFPB) targets large non-bank digital wallet and payment application providers, significantly impacting the management and regulation of online gambling payments [1][2] - The regulation applies to entities processing over 50 million transactions annually, covering over 13 billion consumer payment transactions each year [1][2] Group 1 - The CFPB has signaled that digital wallet providers must meet consumer protection standards equivalent to those of banks, leading to stricter compliance requirements for licensed gambling operators [1][2] - The intersection of digital wallets and the gambling industry is becoming central, especially for low deposit threshold gambling platforms, necessitating operators to evaluate payment partners based on their ability to meet bank-level regulatory standards [2] - The industry is witnessing a trend towards account-to-account (A2A) payments, which allow direct transfers between player bank accounts and gambling accounts, expected to grow significantly in the next two years [2] Group 2 - The new regulation serves as a policy adjustment and a signal to the industry that payment strategies must be future-proof, with operators prioritizing secure and auditable payment processes likely to gain a competitive advantage [2] - MDC advises licensed gambling operators and digital wallet providers to thoroughly review the CFPB's final rules and assess their potential impacts on payment integration, data security, and player trust [2][3]

Financial Data and Key Metrics Changes - MGM Resorts reported a consolidated net revenue growth this quarter, despite challenges in Las Vegas, indicating the benefits of geographic and channel diversity [5][6] - The Las Vegas segment reported $601 million in EBITDA, down $130 million year over year, attributed to decreased business interruption proceeds and operational impacts [12][13] - Net revenue in Las Vegas declined by 7%, while expenses were managed down accordingly, including a 7% decrease in full-time employees [14] Business Line Data and Key Metrics Changes - Regional operations achieved record total revenue and EBITDA, with Borgata posting all-time high table games drop and slot win [9][15] - MGM China achieved record Q3 EBITDA despite a $12 million impact from a typhoon, ending the quarter with a market share of 15.5% [15] - MGM Digital reported a revenue growth of 23% during the quarter, although segment EBITDA was a loss of $23 million due to increased investment in Brazil [16] Market Data and Key Metrics Changes - Las Vegas is expected to receive over 40 million visitors in 2025, with signs of stabilization in the luxury market segment [7][8] - In Macau, visitation increased by 11% during the Golden Week holiday period, with total win up 20% [15] - The BetMGM North American venture reported outstanding results and is expected to begin distributing cash back to MGM Resorts [15][20] Company Strategy and Development Direction - The company remains focused on premium, market-leading integrated resort operations and optimizing its portfolio for value opportunities [5][4] - MGM is committed to diversifying its business, with significant investments in Japan and digital channels, aiming for a high teens return upon opening [11][12] - The company is also exploring share buybacks as a means to enhance shareholder value, given the current undervaluation of its stock [18][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter and 2026, citing strong group demand and improvements in room rates [14][23] - The company acknowledged challenges in the Las Vegas market but emphasized proactive measures to enhance customer experience and value [6][42] - Management highlighted the importance of maintaining high standards in the gaming industry and the need for continued investment in customer understanding [21][62] Other Important Information - The company announced the sale of Northfield Park for $546 million, reflecting a significant premium to MGM's current share price [5][18] - A $300 million yen-denominated credit facility was entered to support funding commitments for MGM Osaka [12] - The retirement of COO Corey Sanders was acknowledged, marking a significant transition for the company [21][22] Q&A Session Summary Question: Decision to exit New York - Management explained that the decision was influenced by high tax hurdles and competitive pressures, leading to a reassessment of capital allocation [24][25] Question: Return hurdles for investment - Current return thresholds are high due to the share price, with a focus on projects like Japan that have favorable supply-demand dynamics [26] Question: Digital growth and investment balance - Digital investments are currently cash generative, with a focus on growing existing businesses rather than pursuing inorganic growth [31] Question: Las Vegas stabilization outlook - Management indicated sequential improvement in Las Vegas, with expectations for better performance in Q4 driven by group demand [33] Question: Strategy in Macau amidst competition - MGM China focuses on quality products and customer understanding to maintain market share, with ongoing CapEx projects to enhance offerings [36][38] Question: Capital projects in Las Vegas - Management confirmed that the disruption from renovations is expected to ease, leading to improved ADR and occupancy over time [78] Question: Outlook for 2026 group events - The company anticipates a strong convention mix in the first half of 2026, which will support room occupancy and rate increases [70]

Core Insights - Entain Group is experiencing a strong transformation and making significant progress with its strategic priorities [3] - The company is enhancing its operational execution, which allows for greater capacity to operate across more markets [3] - Technology is a fundamental component of Entain's operations, supporting its growth and efficiency [3] Q3 Highlights - The Q3 results indicate a positive trend in the company's performance, with operational improvements being a key focus [2] - The leadership team, including the CEO and CFO, is actively engaged in discussing the trading performance and future outlook [2]

Financial Data and Key Metrics Changes - The company reported a revenue of $700,000 for Q2 2025, down from $1,000,000 in Q2 2024, indicating a decline of 30% [36] - Gross profit for Q2 2025 was $200,000, representing 30% of revenue, compared to $300,000 or 28.5% of revenue in Q2 2024 [36] - The net loss for Q2 2025 was $103,400,000, significantly higher than the $500,000 loss in Q2 2024, primarily due to an $87,800,000 non-cash impairment and $16,400,000 in stock-based compensation [37] - Cash on hand increased to $5,100,000 as of June 30, 2025, compared to $1,400,000 at the end of 2024 [37] Business Line Data and Key Metrics Changes - The company held 24,704 ETH with a net value of $61,500,000 and 164,731 LSEth (liquid stake ETH) valued at $382,400,000 as of June 30, 2025 [33] - The impairment loss on LSE holdings was due to a decrease in market value, with the lowest price during the quarter being approximately $2,300 [35] Market Data and Key Metrics Changes - The company has raised over $2,600,000,000 in investor capital since launching its ETH treasury strategy on June 2, 2025, purchasing more than 700,000 units of ETH [26] - The company closed a $425,000,000 private placement on May 30, 2025, led by Consensus and supported by other prominent crypto venture capital firms [27] Company Strategy and Development Direction - The company's mission is to become the world's largest and most trusted Ethereum treasury company, focusing on unlocking Ethereum's full potential for investors [19] - The strategy includes accumulating ETH for the long term and activating it through yield strategies, including native staking and participation in DeFi [42] - The company aims to increase its ETH concentration metric, which measures the amount of ETH held per 1,000 diluted shares, as a key indicator of value creation [24] Management's Comments on Operating Environment and Future Outlook - Management highlighted a significant shift towards a digitized and decentralized economy, with increasing institutional adoption and legislative support for digital assets [16][17] - The Ethereum ecosystem is expected to grow, with more applications and developers entering the space, supported by major financial institutions [46] - The company anticipates that ETH's market capitalization could grow significantly as the adoption of Ethereum increases [44] Other Important Information - The company is exploring partnerships with crypto-focused gaming platforms to enhance its affiliate marketing business [30] - The management emphasized the importance of risk management in their treasury strategy, leveraging partnerships with leading asset managers and custodians [94] Q&A Session Summary Question: Can you elaborate on the opportunity to activate ETH for yield generation? - Management indicated a focus on accumulating ETH and activating it through various yield strategies, emphasizing a risk-managed approach [42][43] Question: What is the valuation outlook for ETH by 2028? - Management discussed the potential for ETH to reach valuations between $15,000 and $40,000, contingent on increased adoption and application development within the Ethereum ecosystem [44][46] Question: Are there other initiatives beyond the ETH treasury strategy? - Management confirmed that while the primary focus is on the ETH treasury strategy, they are exploring additional revenue-generating opportunities that align with their core business [52][53] Question: How does the company plan to maintain its competitive edge in the evolving market? - Management highlighted the importance of transparency and trust in their operations, aiming to be the most trusted entity in the space [86][87] Question: What are the company's plans regarding debt and capital raising? - Management stated that they are currently focused on equity but are exploring equity-linked securities and other capital-raising structures in the future [75][76]

Financial Data and Key Metrics Changes - Consolidated net gaming revenue was $55 million, roughly flat compared to the prior year period, primarily due to the devaluation of the Mexican peso [6][9] - On a constant currency basis, net gaming revenue would have been nearly $61 million, representing a 12% increase year-over-year [6][9] - Adjusted EBITDA was positive $2.3 million in the second quarter, with a contribution of $6.3 million from the Spanish business, which is 5% above the prior year [10][11] - The company ended the quarter with €45 million in total cash, of which approximately €41 million was available [17] Business Line Data and Key Metrics Changes - The casino segment contributed 61% of total net gaming revenue, indicating a stabilization around this mix [6] - In Colombia, net gaming revenue decreased by $1.6 million, partially offset by an $800,000 increase in Panama, which reflects a doubling of net gaming revenue in that market [9][10] - In Mexico, net gaming revenue was $29 million, a 3% increase from the prior year, despite a 19% devaluation of the peso impacting overall revenue [12][13] Market Data and Key Metrics Changes - The average monthly active customers increased by 7%, while the average monthly spend per active customer decreased by 5% due to the weaker peso [6][12] - The company acquired 78,000 first-time depositors, a 7% increase from the prior year [7][12] - The Mexican peso devaluation had a $5.7 million negative impact on net gaming revenue, but on a constant currency basis, revenue would have grown by 23% [13] Company Strategy and Development Direction - The company has regained compliance with Nasdaq listing requirements, alleviating concerns about its status as a publicly traded entity [5] - Marketing investments are expected to decrease in the second half of the year, which, along with a positive outlook for net gaming revenue, is anticipated to lead to higher EBITDA generation [11][39] - The company is focusing on the Mexican market, especially with the upcoming World Cup in 2026, which is expected to drive business growth [13][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in Spain remains challenging, with no immediate changes expected in regulations [24][25] - The company is optimistic about the back half of the year, citing strong returns from existing and new players in Mexico [39] - The VAT imposed in Colombia has significantly impacted revenue, leading to a focus on maintaining breakeven operations in that market [54][55] Other Important Information - The company has repurchased approximately 106,000 shares under its buyback plan, investing around $7.7 million [7] - The company is exploring opportunities for future investments as cash flow improves, although no specific plans have been announced [58][59] Q&A Session Summary Question: Performance in Spain and Competitive Environment - Management indicated that the competitive landscape in Spain remains tough, with no expected changes in the near future [24][25] - The impact of sports seasonality was noted, with expectations for stronger performance in the upcoming quarter [26][27] Question: Marketing Initiatives in Mexico - The marketing strategy is focused on lower LTV players, with ongoing testing of various channels [30][32] - Management clarified that the strategy is not a direct response to peso devaluation but part of ongoing user acquisition efforts [31] Question: Profitability Improvement in the Back Half - Factors contributing to expected profitability include the rolling off of certain sponsorships and improved unit economics in Mexico [36][39] Question: Growth Opportunities in Other Latin American Markets - Management expressed concerns about Colombia due to the VAT impact but noted success in Panama [54][55] - The company believes its successful strategies in Mexico can be replicated in other markets, albeit with higher costs [44][46] Question: GGR and VAT Impact in Colombia - Management acknowledged significant top-line impacts due to VAT, estimating a 40% reduction in expected revenue [68] - The viability of the Colombian market under current conditions remains uncertain and would require further analysis [70] Question: Share Repurchase Strategy - Discussions regarding share repurchases are ongoing at the board level, with a focus on opportunistic buying [75]