Core Viewpoint - The sports betting industry, particularly companies like Codere Online Luxembourg, is facing challenges but also has potential for growth, especially with upcoming events like the World Cup driving increased betting activity. Group 1: Company Overview - Codere Online Luxembourg is the online sports betting and casino arm of Spanish gambling conglomerate Grupo Codere, publicly listed since 2021 through a SPAC merger [5]. - The company has a market capitalization of $364 million and its stock price has fluctuated between $5.18 and $8.75 over the past year [4][5]. Group 2: Financial Performance - Codere's shares fell significantly in 2022 due to concerns about profitability, but rebounded to $8 per share in 2024, driven by improved fiscal results [6][7]. - The company has experienced a revenue increase and a move towards consistently positive adjusted EBITDA by focusing on its home market of Spain and expanding into Latin America [7]. Group 3: Stock Performance and Market Sentiment - Codere's stock has shown mixed performance, with a notable drop earlier this year due to a Nasdaq compliance issue and the exit of its CFO [8]. - Since hitting a 52-week low in mid-November, the stock has rebounded by approximately 45%, attributed to the latest earnings release [9]. Group 4: Future Outlook - Analysts estimate Codere to earn $0.43 per share in 2026 and $0.68 per share in 2027, with the stock currently trading at around 17.5 times forward earnings [10]. - The upcoming World Cup is expected to boost betting activity, potentially increasing site traffic and user retention [11]. - The company has high fixed compliance and technological costs, but decreasing customer acquisition costs may lead to significant earnings growth with moderate revenue increases [12].

The iGaming market has grown twofold. On one hand, we have an increased number of online players who enjoy the convenience that iGaming provides. And on the other hand, we have an increased number of online casino real money sites that provide the said services to the players. Combine these two developments, and you have a multi-billion-dollar industry. But as you may very well know, in every market, some companies take the lion’s share because of their competitive advantage. We look at the top iGaming comp ...