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.

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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.