Financial Data and Key Metrics Changes - The company reported net gaming revenues of €53 million for Q4 2024, a 5% increase compared to Q4 2023. In constant currency terms, net gaming revenue would have been €57 million, reflecting a 15% increase year-on-year [10][14] - Adjusted EBITDA for Q4 2024 was €1.9 million, with a total adjusted EBITDA of €6.4 million for the full year [15][16] - The company ended the year with €40 million in total cash, of which approximately €35 million was available [22] Business Line Data and Key Metrics Changes - The casino segment contributed 62% of total net gaming revenue in Q4 2024, driven by a seasonal decline in sports betting [10] - In Spain, net gaming revenue grew by 10% to €23 million, while in Mexico, it remained flat at €25 million due to currency and sports betting margin headwinds [14][20] - The number of average monthly active customers increased by 6%, with 71,000 first-time depositors in Q4 2024, up from 67,000 in Q3 2024 [11][12] Market Data and Key Metrics Changes - The Mexican peso devalued by 14% in Q4 2024, impacting net gaming revenue by approximately €3.4 million [20][22] - Despite the currency headwinds, the company reported a 16% increase in average monthly active customers in Mexico compared to Q4 2023 [21] Company Strategy and Development Direction - The company plans to implement a one-year share buyback plan for up to $5 million, reflecting confidence in its cash position and expected cash flow generation [12] - The management emphasized the attractiveness of investment opportunities in Spain and Mexico, despite the competitive landscape [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a weaker Mexican peso and new tax regulations in Colombia, which could impact future growth [24][40] - The company expects net gaming revenue for 2025 to be between €220 million and €230 million, reflecting a 6% increase at the midpoint compared to 2024 [24] Other Important Information - The company successfully transitioned to a new auditor, MaloneBailey, after the resignation of its former auditor, Marcum [7][8] - The management highlighted the importance of maintaining a balance between growth and profitability in their future strategies [25] Q&A Session Summary Question: What is the Euro assumption embedded in the 2025 guidance? - The CFO indicated that he would need to check the specific FX forecast included in the 2025 figures and follow up after the call [33] Question: Is the implied flow-through to EBITDA a function of conservatism around user acquisition investment? - The CFO noted that the upcoming Club World Cup in mid-2025 is a factor in their conservative guidance, as marketing investment is crucial for outcomes [36] Question: Have competitors shifted focus to Brazil, affecting competitive intensity in Mexico? - The CEO mentioned that while competitors have not left Mexico, some have taken a short break, providing an opportunity for the company to capitalize on [58] Question: What are the growth investment plans outside of Mexico? - The CEO stated that while they are looking at opportunities in Brazil, the focus remains on core markets where they see good ROI, and they are cautious about entering new markets [80][81] Question: What is the situation in Argentina? - The CEO expressed challenges in entering the province of Argentina, which limits growth potential, and they are actively seeking opportunities to obtain a license [84]
ere Online Luxembourg(CDRO) - 2024 Q4 - Earnings Call Transcript