CDROW Q2 2026 Earnings Call Summary

Summary of Codere Online's Q2 2026 Earnings Call

1. Key Financial Results and Metrics:

Consolidated Net Gaming Revenue (NGR): EUR 69.4 million, a 27% increase year-over-year and a significant sequential acceleration from Q1.
Adjusted EBITDA: EUR 5.8 million, up from EUR 2.3 million in Q2 2025, with an adjusted EBITDA margin improving to 8.4% from 4.3%.
Average Monthly Active Customers: Approximately 173,000, up 12% year-over-year.
Average Monthly Spend per Customer: EUR 134, a 13% increase year-over-year.
First-Time Depositors: 108,000 acquired, a 37% increase from the prior year.
Marketing Expenses: EUR 26.2 million, representing 37.7% of NGR, down from 41.5% in Q2 2025.

2. Strategic Updates and Business Highlights:

Strong revenue growth driven by solid performances in Spain and Mexico, with notable improvements in Colombia and Panama.
Successful marketing strategies around the World Cup led to increased customer engagement and acquisition.
The company has raised its full-year 2026 guidance for NGR to EUR 255 million - EUR 265 million and adjusted EBITDA to EUR 20 million - EUR 25 million.
The removal of the 19% VAT on deposits in Colombia has positively impacted customer re-engagement and revenue recovery.
Codere Online is focusing on maintaining a strong balance sheet with no financial debt and approximately EUR 63 million in cash.

3. Forward Guidance and Outlook:

Revised Full-Year Guidance:
- NGR: EUR 255 million - EUR 265 million (up from EUR 235 million - EUR 245 million).
- Adjusted EBITDA: EUR 20 million - EUR 25 million (up from EUR 15 million - EUR 20 million).
Continued focus on disciplined capital allocation and potential investments in growth opportunities, particularly in Latin America.

4. Challenges and Points of Concern:

Competitive Pressures: Increased competition in Mexico with new entrants and aggressive promotional activities from rivals.
Market Conditions: The company is in a "wait-and-see" mode regarding marketing investments in Colombia due to ongoing tax uncertainties.
Customer Retention: While initial engagement from World Cup acquisitions is positive, long-term retention remains uncertain.
Seasonal Effects: A slight decline in active users was noted as the company entered the summer months, which may affect Q3 performance.

5. Notable Q&A Insights:

World Cup Impact: Initial retention of new users from the World Cup is promising, but it is too early to assess long-term behavior.
Cost of Acquisition (CAC): CAC improved despite increased competition, attributed to effective marketing strategies and brand strength.
Marketing Strategy: The company is increasing marketing spend nominally, particularly in Spain, while aiming to reduce marketing as a percentage of NGR over time.
Future Investments: Codere Online is exploring strategic acquisitions and market entries in Latin America, with a focus on optimizing cash usage for growth.
Liquidity Concerns: The company acknowledges that low liquidity affects its share price, which is a challenge in competing with larger operators.

Overall, Codere Online reported strong financial performance in Q2 2026, with significant growth in revenue and profitability. The company is optimistic about its future but faces challenges from competition and market conditions that require careful navigation.

CDROW — Codere Online Luxembourg, S.A.