Codere Online Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Gaming Revenue (NGR): EUR 64.4 million, a 13% increase year-over-year and a 6% sequential increase.

Revenue Mix: Casino contributed 63% of total revenue, with sports betting at 37%.

Average Monthly Active Customers: Approximately 183,000, up 14% year-over-year.

Average Monthly Spend per Active Customer: EUR 117, down 1% year-over-year.

First Quarter Adjusted EBITDA: EUR 6 million, compared to EUR 1.8 million in Q1 2025, resulting in an adjusted EBITDA margin of 9%.

Marketing Expense: EUR 25 million, slightly above Q1 2025 but lower as a percentage of NGR.

2Strategic Updates and Business Highlights

Continued expansion in core markets, particularly Spain and Mexico, with both markets showing solid performance.

Spain's NGR increased by 16.4% year-over-year to EUR 20.5 million, while Mexico's NGR grew by 13.4% to EUR 34.6 million.

Focus on acquiring higher-value customer cohorts, with an average cost per acquisition (CPA) of EUR 212.

Implementation of tighter promotional rules in Mexico to improve customer quality and sustainability.

Secured a content partnership with a leading television broadcaster to enhance brand visibility during football games.

3Forward Guidance and Outlook

Full-year guidance for 2026 remains unchanged: NGR expected between EUR 235 million to EUR 245 million and adjusted EBITDA between EUR 15 million to EUR 20 million.

Anticipation of potential positive impacts from the upcoming World Cup, although historical data suggests limited impact on NGR.

Management plans to reassess guidance following Q2 results based on performance trends.

4Bad News, Challenges, or Points of Concern

Competitive pressures in Mexico, notably from new entrants like Stake, though current impacts on customer acquisition costs (CAC) are not significant.

Decline in average monthly spend per active customer, attributed to a broader and more diversified player base.

Slight decrease in active customer levels in Mexico compared to Q4 2025, which may affect future growth.

Regulatory and tax environments in various markets remain challenging and could impact profitability.

5Notable Q&A Insights

Management indicated that while the World Cup may boost activity, it is not expected to significantly impact NGR or financials.

In Mexico, despite the competitive landscape, Codere Online continues to grow its customer base without immediate pressure on CAC.

AI implementation is still in early stages, primarily in customer service, with no significant benefits realized in core operations yet.

Future investments in Colombia are contingent on political changes and a more favorable business environment post-elections.

Management emphasized a balanced approach to capital allocation, focusing on sustainable growth while maintaining cash reserves for potential opportunities. Overall, Codere Online's Q1 2026 results reflect a solid start to the year with growth in key markets and improved profitability, although challenges in customer spending and competition remain areas to monitor.