CDROW — Codere Online Luxembourg, S.A.

Codere Online Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Gaming Revenue (NGR): EUR 64.4 million, a 13% increase year-over-year and a 6% sequential increase.
• Adjusted EBITDA: EUR 6 million, up from EUR 1.8 million in Q1 2025, reflecting improved profitability.
• Average Monthly Active Customers: Approximately 183,000, a 14% increase year-over-year.
• Average Monthly Spend per Active Customer: EUR 117, slightly down by 1% from the previous year.
• Marketing Expenses: EUR 25 million, up EUR 1.2 million year-over-year but lower as a percentage of NGR.
• Cash Position: EUR 56 million total cash, with EUR 51 million available.

2. Strategic Updates and Business Highlights

• Continued growth in both casino (63% of revenue) and sports betting (37% of revenue).
• Strong performance in core markets, particularly Spain (NGR of EUR 20.5 million, up 16.4% year-over-year) and Mexico (NGR of EUR 34.6 million, up 13.4% year-over-year).
• Focus on acquiring higher-value customers while maintaining cost discipline in marketing.
• Introduction of a content partnership with a television broadcaster to enhance brand visibility.
• Ongoing efforts to optimize the customer base in Mexico, particularly in response to regulatory changes.

3. Forward Guidance and Outlook

• Full-year 2026 guidance for NGR remains at EUR 235 million to EUR 245 million and adjusted EBITDA between EUR 15 million to EUR 20 million.
• Management is optimistic about maintaining growth and profitability, with potential for revisiting guidance after H1 2026 based on performance trends.

4. Bad News, Challenges, or Points of Concern

• Competitive pressures in Mexico, particularly with the entry of new players like Stake, although no immediate impact on customer acquisition costs (CAC) was noted.
• Declining average spend per active customer, attributed to a broader customer base.
• Active customer levels in Mexico showed a slight decline compared to the previous quarter, influenced by tighter promotional regulations.
• Regulatory and tax environments remain challenging, particularly in Colombia, where investment opportunities are limited due to new tax structures.

5. Notable Q&A Insights

• Management clarified that while the World Cup is expected to boost activity, historical data suggests limited impact on NGR.
• The competitive environment in Mexico is being monitored, but current marketing strategies remain effective.
• AI implementation is still in early stages, with benefits primarily seen in customer service rather than core business operations.
• Future capital allocation will focus on maintaining a balance between growth investments and shareholder returns, with no immediate plans for acquisitions.

Overall, Codere Online reported a solid start to 2026, with strong revenue growth and improved profitability, while navigating competitive and regulatory challenges in its key markets.