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 - PENN Entertainment reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of -120.00% [1] - The company's revenues for the quarter ended September 2025 were $1.72 billion, missing the Zacks Consensus Estimate by 0.51%, but showing an increase from $1.64 billion year-over-year [2] - PENN Entertainment shares have declined approximately 17.5% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of PENN Entertainment's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $1.81 billion, and for the current fiscal year, it is $0.65 on revenues of $6.97 billion [7] Industry Context - The Gaming industry, to which PENN Entertainment belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Flutter Entertainment, is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 11.6%, with revenues projected at $3.86 billion, an 18.8% increase from the previous year [9][10]

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]

Core Viewpoint - The UK horse racing industry is facing a severe crisis due to the Treasury's proposal to increase the online betting tax rate from 15% to 21%, which could significantly impact the industry's survival and development [1][3]. Group 1: Economic Impact - The horse racing industry is the second largest sport in the UK, contributing significantly to local economies and employment [3]. - Research indicates that the proposed tax increase could lead to a loss of £66 million in the first year and a total of £330 million over the next five years for the UK horse racing industry [5]. - The tax rate adjustment could threaten thousands of jobs, with specific regions like Yorkshire projected to lose 342 jobs [8]. Group 2: Industry Response - The horse racing community has united to protest against the tax policy change, with the British Horseracing Authority launching a petition to "Abolish the Horse Racing Tax" that has garnered support from industry figures and the public [7]. - The horse racing industry supports a complex ecosystem, affecting various sectors from trainers to feed suppliers, and the tax increase could disrupt this supply chain [8]. Group 3: Cultural and Economic Significance - Horse racing is not only a sporting event but also a cultural and economic symbol, with local courts, pubs, hotels, and restaurants benefiting directly from the industry [10]. - The potential decline of the horse racing industry due to tax adjustments could have a significant negative impact on the economies of many towns and villages [10]. Group 4: Ongoing Debate - The British Horseracing Authority is seeking more support to persuade the government to reconsider the potential losses from the tax policy implementation [10]. - There is ongoing debate among parliament members, with some supporting the tax increase for fiscal reasons, while industry insiders warn of the devastating impact on the horse racing sector and the socio-economic system built over the years [10].