Summary of Codere Online's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Consolidated Net Gaming Revenue (NGR): EUR 69.4 million, a 27% increase year-over-year and a sequential acceleration from Q1.

Adjusted EBITDA: EUR 5.8 million, up from EUR 2.3 million in Q2 2025.

Revenue Breakdown: Casino contributed 62% and sports betting 38% of total revenue.

Average Monthly Active Customers: Approximately 173,000, a 12% increase year-over-year.

Average Monthly Spend per Customer: EUR 134, reflecting a 13% year-over-year increase.

First-Time Depositors: 108,000 acquired, a 40% increase compared to the prior year.

Cost per Acquisition (CAC): Improved to EUR 200 from EUR 217 in the previous year.

2Strategic Updates and Business Highlights

Strong performance in Spain and Mexico, with Spain's NGR up 25% and Mexico's up 24% year-over-year.

Positive impact from the World Cup, with stakes reaching EUR 63 million, 180% above the previous tournament.

The removal of the 19% VAT on deposits in Colombia has allowed for customer re-engagement and revenue recovery.

Continued investment in marketing, particularly in Spain and Mexico, while managing to reduce marketing as a percentage of NGR.

Cash position at the end of the quarter was approximately EUR 63 million, with no financial debt.

3Forward Guidance and Outlook

Revised Full-Year 2026 Guidance:

NGR expected between EUR 255 million to EUR 265 million, up from EUR 235 million to EUR 245 million.

Adjusted EBITDA guidance raised to EUR 20 million to EUR 25 million from EUR 15 million to EUR 20 million.

The guidance revision is supported by strong performances in Colombia, Spain, and Mexico, alongside favorable market conditions.

4Bad News, Challenges, or Points of Concern

Despite strong overall performance, there are concerns regarding the competitive landscape, particularly in Mexico where promotional activity remains high.

The company is in a "wait-and-see" mode regarding marketing investments in Colombia due to ongoing tax uncertainties.

Sequential decline in average monthly active customers in Spain and Mexico, attributed to seasonal factors and a strategic focus on customer quality over quantity.

5Notable Q&A Insights

World Cup Impact: Retention of new users post-World Cup is still uncertain, with early signs of continued engagement but needing more time for a clearer picture.

Cost per Acquisition: The decrease in CAC was attributed to strategic marketing investments that did not heavily rely on high-cost World Cup advertising.

Marketing Strategy: The company plans to maintain a flexible marketing budget, adjusting based on performance and market conditions, with a target of around EUR 90 million to EUR 100 million for the full year.

Competitive Environment: The competitive landscape in Mexico is described as harsh, with new entrants increasing promotional spending, but Codere remains confident in its brand strength and customer retention strategies.

Capital Allocation: The company is exploring various strategic options for cash deployment, including potential market entries in Latin America and share buybacks, while acknowledging liquidity issues affecting share price. This summary encapsulates the key aspects of Codere Online's Q2 2026 earnings call, highlighting both positive developments and areas of concern.