Codere Online Luxembourg, S.A. (CDRO) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed outlook. While there is growth in key metrics like net gaming revenue and active users, challenges such as regulatory compliance issues, currency exchange risks, and competitive pressures in Spain temper optimism. The share buyback plan is a positive, but its limited execution so far reduces impact. The Q&A reveals management's lack of clarity on certain issues, which may raise investor concerns. Overall, the mixed signals and uncertainty result in a neutral stock price prediction.
Key Financial Performance
Net Gaming Revenue €57 million, 8% increase year-over-year; driven by a 15% increase in Mexican revenue and a 21% increase in first-time depositors.
Adjusted EBITDA €1.8 million, in line with Q1 2024; despite a €4 million increase in net gaming revenue, impacted by higher marketing investments.
Cash on Balance Sheet €42 million total cash, €37 million available; reflects a normalized level of working capital despite negative €18 million net working capital position.
Available Cash Flow €2.2 million generated in Q1 2025; partially offset by €0.9 million negative FX impact due to currency devaluation.
Average Monthly Active Users 82,000, 31% increase year-over-year; driven by customer acquisition efforts in Mexico.
Average Monthly Spend per Active Customer €118, 5% decrease year-over-year; reflects lower player values.
First Time Depositors (FTDs) 91,000, 21% increase year-over-year; driven by new customer acquisition channels.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Net Gaming Revenue: €57 million in Q1 2025, 8% above Q1 2024; €62 million in constant currency, 17% above prior-year period.
Customer Acquisition: 91,000 first-time depositors in Q1 2025, 21% above prior-year period.
Active Customers: Average monthly active users increased by 13%.
Spanish Market Performance: Net gaming revenue in Spain was flat at €22 million.
Mexican Market Performance: Net gaming revenue in Mexico was €30.5 million, 15% above prior-year period.
Adjusted EBITDA: Positive €1.8 million in Q1 2025, marking fifth consecutive quarter of positive adjusted EBITDA.
Share Buyback Plan: One-year share buyback plan for up to $5 million; approximately $0.5 million spent on repurchasing 68,000 shares.
Compliance with Nasdaq: Filed 2023 annual report on Form 20-F on May 1, regaining compliance with Nasdaq listing requirements.
Future Outlook: Expect to generate net gaming revenue between €220 million and €230 million and adjusted EBITDA between €10 million and €15 million for 2025.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Compliance Risks: The company is currently facing a compliance issue with Nasdaq due to delays in filing their 2024 annual report, which may lead to a new delisting notice. They plan to appeal this notice and request a hearing.
Currency Exchange Risks: The devaluation of the Mexican peso has negatively impacted net gaming revenue, with a reported €5 million headwind in Q1 2025. The company anticipates continued exchange rate challenges, although they expect the impact to lessen after Q2.
Competitive Pressures in Spain: The company is adapting its promotional activities in Spain due to a challenging competitive landscape, which has affected customer acquisition and spending.
Supply Chain Challenges: The company reported a negative working capital position of €18 million, reflecting more restrictive trade terms with suppliers, which may impact operational flexibility.
Economic Factors: The company noted that trade tensions and uncertainties have contributed to currency volatility, which could affect future financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Share Buyback Plan: A one-year share buyback plan for up to $5 million was approved by shareholders on March 3, with approximately $0.5 million spent to repurchase around 68,000 shares by May 15.
Customer Acquisition Strategy: The company reported a strong quarter with 91,000 first-time depositors, a 21% increase year-on-year, indicating effective customer acquisition strategies.
Focus on Mexican Market: Codere Online continues to explore and optimize customer traffic sources in Mexico, which remains a compelling growth opportunity despite currency headwinds.
Net Gaming Revenue Guidance: The company expects to generate net gaming revenue between €220 million and €230 million for the full year 2025.
Adjusted EBITDA Guidance: Adjusted EBITDA is projected to be in the range of €10 million to €15 million for 2025.
Q2 2025 Outlook: The company anticipates a difficult comparison for Q2 results due to exchange rate headwinds but expects less impact thereafter.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Buyback Plan: A one-year share buyback plan for up to $5 million was approved by shareholders on March 3. As of May 15, approximately $0.5 million has been used to repurchase around 68,000 shares under this plan.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you talk about the competitive environment and what is allowing you to acquire more users at lower cost?
A:We are testing new traffic sources and had a good experience with one channel that resulted in reduced CPA and higher player acquisition. However, the revenue impact from these players was lower than expected.
Q:Is the flat net revenue growth in Spain mostly due to higher competition or something else?
A:The flat growth is primarily due to the reintroduction of the welcome bonus and a more competitive landscape. We are seeing positive trends and focusing on higher-value customers.
Q:What is driving the average revenue per active being down?
A:In Spain, lower player values due to competition and promotional strategies are impacting revenue. In Mexico, new acquisition channels have lower player values, contributing to the decline.
Q:Are there market dynamics improving in other markets that may lead to increased investment?
A:We see good results in Colombia and improvements in Panama. We plan to increase investment in Mexico to reach our targets.
Q:Do you expect Spain to return to revenue growth for the rest of the year?
A:Yes, we expect to resume growth in Spain.
Q:Will the marketing investments be ongoing or one-time?
A:It's a mix of ongoing investments in personnel and platform improvements, but nothing major.
Q:What is the dynamic with the share repurchase program?
A:The shareholders approved a broader authorization, but the Board decided on a US$5 million buyback plan initially.
Q:Is there any progress on the Argentina license acquisition?
A:No significant progress; we are still open to the opportunity.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer regarding the specific impacts of competition on revenue growth in Spain and the dynamics of the share repurchase program, as well as the lack of clarity on the Argentina license acquisition.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Chairman
Chief
Codere Online
Conference
Executive Vice
Head Investor
Investor Relations
Lancha Head
Nasdaq compliance
Officer
Page cash
Page gaming
Sher
audit
basis gaming
compliance issue
currency basis
deadline
devaluation peso
gaming period
gaming quarter
headwind
hearing
increase gaming
listing requirement
mid
mute
notice
period Nasdaq
plan
player value
regard
source
statement
trade
uncertainty
CDRO Transcript
Codere Online Luxembourg, S.A. (CDRO) Q1 2026 Earnings Call Transcript
Positive5-7
The earnings call presents a strong financial performance with 13% YoY NGR growth, increased active customers, and improved EBITDA margins. While average customer spend slightly decreased, the diversified customer base and marketing efficiency are positives. The Q&A session highlights manageable competitive pressures in Mexico and ongoing AI implementation, though lacking specifics. The guidance for 2026 shows confidence, despite not expecting a substantial World Cup impact. Overall, the company's growth and efficiency improvements suggest a positive stock reaction, especially with potential buybacks and no immediate market cap data.
Codere Online Luxembourg, S.A. (CDRO) Q4 2025 Earnings Call Transcript
Positive2-26
The earnings call highlights strong financial performance with increased FTDs, improved marketing efficiency, and robust revenue growth in key markets like Mexico. Despite regulatory challenges, the company has effective strategies in place, such as leveraging cost efficiencies and focusing on core markets. The Q&A reveals cautious optimism, with management addressing concerns about tax impacts and competitive dynamics. Overall, the positive financial metrics, strategic focus on growth markets, and effective risk management suggest a positive outlook for the stock price.
Codere Online Luxembourg, S.A. (CDRO) Q2 2025 Earnings Call Transcript
Unknown8-1
The earnings call indicates mixed signals: stable NGR with currency impacts, a challenging Spanish market, and positive EBITDA. The Q&A highlights regulatory challenges and cautious optimism in Mexico. The share buyback and potential profitability improvements are positive, but concerns about Colombia's VAT impact and unclear guidance on its viability add uncertainty. Overall, the sentiment is balanced, leading to a neutral stock price expectation.
Codere Online Luxembourg, S.A. (CDRO) Q1 2025 Earnings Call Transcript
Unknown5-16
The earnings call presents a mixed outlook. While there is growth in key metrics like net gaming revenue and active users, challenges such as regulatory compliance issues, currency exchange risks, and competitive pressures in Spain temper optimism. The share buyback plan is a positive, but its limited execution so far reduces impact. The Q&A reveals management's lack of clarity on certain issues, which may raise investor concerns. Overall, the mixed signals and uncertainty result in a neutral stock price prediction.
CDRO Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
