Group 1 - Codere Online Luxembourg, S.A. is a leading online gaming operator in Spain and Latin America, participating in upcoming investor conferences [1] - Key management attendees for the conferences include CEO Aviv Sher, former CFO Oscar Iglesias, CFO Marcus Arildsson, and Head of Investor Relations Guillermo Lancha [1] - Codere Online was launched in 2014 as part of the Codere Group, offering online sports betting and casino services through its website and mobile applications [3] Group 2 - Codere Group is a multinational entertainment and leisure company with over four decades of experience in the private gaming industry, operating in seven countries across Europe and Latin America [4] - The company operates in core markets including Spain, Mexico, Colombia, Panama, and Argentina, with a strong omnichannel presence combining online and physical gaming [3][4] - Upcoming investor conferences include the Annual Craig-Hallum Online Gaming Conference on December 2, 2025, and the BTIG Digital GameDay on December 10, 2025, both held virtually [5]

Financial Data and Key Metrics Changes - The company reported EUR 52 million in net gaming revenue for Q3 2025, which was flat compared to the prior year, impacted by unfavorable foreign exchange effects and a low sports betting margin [5][10] - Adjusted EBITDA was positive EUR 2.9 million, nearly doubling from the prior year, driven by a EUR 4 million reduction in marketing spend [11][12] - On a constant currency basis, net gaming revenue would have grown by 3% [12] Business Line Data and Key Metrics Changes - The casino segment contributed 65% to total net gaming revenue, which was 5 percentage points above normal levels, while sports betting revenue was negatively impacted [6][10] - The average monthly active customers increased by 11%, but average monthly spend per active customer decreased by 10% due to currency devaluation [8][12] - The company acquired 85,000 first-time depositors (FTDs), a 26% increase year-over-year, with the lowest cost per acquisition (CPA) since Q1 2023 at EUR 167 [8][12] Market Data and Key Metrics Changes - In Spain, net gaming revenue was EUR 22 million, a 5% increase from the prior year, driven by higher spend per active customer and a 4% increase in active customers [13] - In Mexico, net gaming revenue remained flat at EUR 27 million, with a nearly 5% devaluation of the peso impacting results; however, on a constant currency basis, revenue would have grown by 5% [14] - The company noted a decline in net gaming revenue from Colombia, impacted by a value-added tax on deposits [10][11] Company Strategy and Development Direction - The company plans to increase its share buyback program from $5 million to $7.5 million, reflecting confidence in the business outlook [9] - The management is focused on optimizing customer acquisition strategies, particularly in Mexico, while also preparing for potential impacts from a proposed increase in gaming tax rates [15][16] - The company is monitoring regulatory changes in Spain and Colombia, with a cautious approach to future investments in Colombia due to unfavorable tax conditions [49][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a re-acceleration of net gaming revenue in Q4 2025, with growth expected to continue into 2026 [6][18] - The management acknowledged challenges posed by the proposed tax increase in Mexico but remains confident in the long-term potential of the market [16][25] - The company is also exploring the use of AI tools to enhance customer experience, although current implementations have not yet met expectations [60][62] Other Important Information - The company ended Q3 2025 with EUR 48 million in total cash, with EUR 43 million available [17] - The management reiterated guidance for 2025, expecting net gaming revenue between EUR 220 million and EUR 230 million, and adjusted EBITDA in the range of EUR 10-15 million [18] Q&A Session Summary Question: Can you share thoughts on mitigating higher taxes in Mexico? - Management is reaching out to partners to explore ways to mitigate the impact of the tax increase, which is expected to be approved soon [24][25] Question: Have you been impacted by recent AML crackdowns in Mexico? - Management stated they have not been directly impacted and continue to operate within regulatory standards [28][30] Question: What is the strategy regarding customer acquisition costs? - Management noted that lower CPA has been associated with lower player value, and they are continuously optimizing acquisition strategies [34] Question: How is the marketing strategy evolving in Spain? - Management reported positive trends in KPIs in Spain and is optimistic about the business outlook following regulatory changes [42][44] Question: What are the expectations regarding VAT in Colombia? - Management is monitoring the situation closely, with the current VAT being a significant challenge for profitability [48][52]

Financial Data and Key Metrics Changes - The company reported EUR 52 million in net gaming revenue for Q3 2025, which was flat compared to the prior year despite facing headwinds [5][10] - Adjusted EBITDA was positive EUR 2.9 million, reflecting a nearly doubling compared to the prior year, driven by a EUR 4 million reduction in marketing spend [11][12] - On a constant currency basis, net gaming revenue would have grown by 3% [12] Business Line Data and Key Metrics Changes - The casino segment contributed 65% to total net gaming revenue in Q3, which is approximately 5 percentage points above normal levels, while sports betting margins declined [6][10] - The average monthly active customers increased by 11%, but the average monthly spend per active customer decreased by 10% due to the weaker Mexican peso [8][12] - The company acquired 85,000 first-time depositors (FTDs), a 26% increase year-over-year, with the lowest customer acquisition cost (CPA) since Q1 2023 at EUR 167 [8][10] Market Data and Key Metrics Changes - Net gaming revenue in Spain was EUR 22 million, a 5% increase from the prior year, while Mexico's revenue was flat at EUR 27 million, impacted by a nearly 5% devaluation of the peso [10][14] - The company noted a significant increase in average monthly active customers in Mexico, reaching 88,000, which is 39% higher than Q3 2024 [14] - The Colombian market saw a decline in net gaming revenue due to the impact of a value-added tax on deposits, with a EUR 1.3 million decrease in revenue [11][50] Company Strategy and Development Direction - The company plans to increase its share buyback program from $5 million to $7.5 million, reflecting confidence in the business outlook [9] - Management is analyzing the impact of a proposed increase in the gaming tax rate in Mexico from 30% to 50%, expected to take effect on January 1, 2026, and is considering strategies to mitigate its impact [15][16] - The company is focused on optimizing customer acquisition strategies and improving player value, particularly in Mexico, while also monitoring regulatory changes in Spain and Colombia [34][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit top-line growth in Q4 2025, with encouraging trends observed in recent months [6] - The company is optimistic about the potential benefits of the World Cup in 2026, which will be co-hosted by Mexico, and is preparing to leverage this opportunity [15] - Management acknowledged the challenges posed by the increased gaming tax in Mexico and the VAT in Colombia, indicating a cautious approach to future investments in these markets [15][50] Other Important Information - The company ended Q3 2025 with EUR 48 million in total cash, of which approximately EUR 43 million was available [17] - The company generated EUR 11.5 million of available cash in the first nine months of 2025, despite a negative FX impact [18] - The company reiterated its guidance for net gaming revenue between EUR 220 million and EUR 230 million for 2025 [18] Q&A Session Summary Question: Impact of higher tax rate in Mexico - Management is assessing strategies to mitigate the impact of the higher tax rate, which is expected to be approved soon [23][24] Question: AML crackdown in Mexico - Management has not experienced any direct impact from the AML crackdown and continues to operate within regulatory standards [27][28] Question: Customer acquisition costs and player value - Management noted a correlation between CPA and player lifetime value, indicating ongoing optimization efforts to improve returns [33][34] Question: Marketing strategy in Spain - Management is optimistic about the marketing strategy in Spain, noting positive trends since the reintroduction of welcome bonuses [44][45] Question: VAT situation in Colombia - Management is monitoring the VAT situation in Colombia, indicating that the current tax structure is challenging for profitability [50][53]

Financial Data and Key Metrics Changes - The company reported EUR 52 million in net gaming revenue for Q3 2025, which was flat compared to the prior year despite facing headwinds [6][11] - Adjusted EBITDA was positive EUR 2.9 million, reflecting a nearly doubling compared to the prior year, driven by a EUR 4 million reduction in marketing spend [12][13] - On a constant currency basis, net gaming revenue would have grown by 3% [13] Business Line Data and Key Metrics Changes - The casino segment contributed 65% to total net gaming revenue, which is approximately 5 percentage points above normal levels, while sports betting margins declined [7] - The average monthly active customers increased by 11%, but the average monthly spend per active customer decreased by 10% due to the weaker Mexican peso [8] Market Data and Key Metrics Changes - Net gaming revenue in Spain was 5% above the prior year at EUR 22 million, while Mexico's revenue remained flat at EUR 27 million, impacted by a nearly 5% devaluation of the peso [11][15] - The company acquired 85,000 first-time depositors (FTDs), a 26% increase from the previous year, with the lowest cost per acquisition (CPA) since Q1 2023 at EUR 167 [8][14] Company Strategy and Development Direction - The company plans to increase its share buyback program from $5 million to $7.5 million, reflecting confidence in the business outlook [10] - The management is analyzing the impact of a proposed increase in the gaming tax rate in Mexico from 30% to 50%, which is expected to take effect on January 1, 2026 [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a re-acceleration of net gaming revenue in Q4 2025, with expectations of double-digit growth continuing into the next year [7] - The company is monitoring regulatory changes in Spain and Colombia, with a cautious approach to future investments in Colombia due to unfavorable tax conditions [44][47] Other Important Information - The company has EUR 48 million in total cash on the balance sheet, with EUR 43 million available, reflecting a normalized level of working capital [18] - The company is exploring the use of AI tools to enhance customer experience, although current implementations have not yet achieved significant success [53][55] Q&A Session Summary Question: Impact of higher tax rate in Mexico - Management acknowledged the potential impact of the tax increase and is exploring ways to mitigate it through partnerships and strategic adjustments [22][24] Question: AML crackdown in Mexico - Management confirmed no direct impact on their operations from recent AML crackdowns affecting competitors, and they are monitoring the situation closely [26][27] Question: Customer acquisition strategy - Management discussed the correlation between CPA and player lifetime value, emphasizing ongoing optimization of acquisition strategies [29][31] Question: Marketing strategy in Spain - Management noted positive trends in Spain following regulatory changes and the reintroduction of welcome bonuses, indicating a constructive outlook for the market [36][40] Question: VAT situation in Colombia - Management is monitoring the VAT situation closely, indicating that current tax conditions make it challenging to invest further in Colombia [41][44]

Codere Online Q3 2025 Earnings November 17, 2025 INFORMACION COLOR: R169 G103 B 171 R121 G192 B 0 R51 G63 B 72 Disclaimer This presentation (this "Presentation"), its contents and any information provided during the meeting to present this document are for discussion purposes only, and must not be relied upon for any purpose. This Presentation is not for release, publication or distribution, in whole or in part, in or into any jurisdiction where such distribution would be unlawful. Certain terms used throug ...

Core Insights - Codere Online reported its preliminary unaudited financial results for Q3 2025, indicating stable net gaming revenue of €51.6 million, unchanged from Q3 2024, with a total revenue of €47.7 million [1][4] - The company anticipates meeting its net gaming revenue outlook of €220-230 million and adjusted EBITDA outlook of €10-15 million for the year [4][8] Financial Performance - Net Gaming Revenue by Region: - Spain: €22.0 million, up 5% from €20.9 million in Q3 2024 - Mexico: €26.8 million, flat compared to €26.7 million in Q3 2024 - Other: €2.8 million, down 32% from €4.1 million in Q3 2024 - Total: €51.6 million, unchanged from Q3 2024 [2][4] - Average Monthly Active Players: - Spain: 50.2 thousand, up 4% from 48.5 thousand in Q3 2024 - Mexico: 88.3 thousand, up 39% from 63.7 thousand in Q3 2024 - Other: 20.7 thousand, down 34% from 31.2 thousand in Q3 2024 - Total: 159.2 thousand, up 11% from 143.4 thousand in Q3 2024 [2][4] Recent Developments - Marcus Arildsson has been appointed as the new Chief Financial Officer, succeeding Oscar Iglesias, who is expected to join the Board [3][8] - The company has repurchased $1.7 million of its shares under an increased share buyback plan, now totaling $7.5 million [8][4]

Core Viewpoint - Codere Online has appointed Marcus Arildsson as the new Chief Financial Officer, succeeding Oscar Iglesias, who will assist in the transition and is expected to join the Board of Directors pending shareholder approval [1][5]. Company Overview - Codere Online is a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services through its website and mobile applications [6]. - The company operates in key markets including Spain, Mexico, Colombia, Panama, and Argentina, and is part of the Codere Group, which has a strong physical presence in these regions [6][7]. Leadership Background - Marcus Arildsson brings over 25 years of international finance experience, having worked in investment banking and corporate finance, including significant roles at Lehman Brothers and Merrill Lynch [2]. - He has executed over €9 billion in cross-border M&A, IPO, and equity-linked transactions and has advised on more than €5 billion in M&A, debt, and equity transactions during his tenure at Arcano Partners [2]. - Arildsson has held CFO and executive roles at various companies, including Millenium Hospitality Real Estate, Sonae Sierra, and Ladorian [3]. Executive Statements - Arildsson expressed enthusiasm about joining Codere Online, highlighting the company's strong execution and vision [4]. - CEO Aviv Sher emphasized the value of Arildsson's leadership and experience in executing the company's plans, while also acknowledging Oscar Iglesias's contributions during the transition [5]. - Chairman Gonzaga Higuero welcomed Arildsson, noting his extensive experience in corporate finance and investment banking as a significant asset to the leadership team [5].

Core Points - Codere Online Luxembourg, S.A. will release its third quarter 2025 results on November 17, 2025, before 8:30 AM US Eastern Time [1] - A conference call will be held at 8:30 AM US Eastern Time on the same day to discuss the results and provide a business update [1] - Earnings press release and related materials will be available on Codere Online's website [2] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services [3] - The company was launched in 2014 as part of the Codere Group, which has a strong physical presence in Latin America [3] - Codere Group is a multinational entertainment and leisure company with over four decades of experience in the private gaming industry, operating in seven countries across Europe and Latin America [4]

Core Viewpoint - Codere Online's Chief Financial Officer, Oscar Iglesias, is stepping down for personal reasons, with his departure effective upon the completion of a transition to his successor or by December 31, 2025 [1][4] Company Transition - The Board of Directors plans to appoint Mr. Iglesias to the Board, where he previously served from 2021 to 2023, ensuring his continued involvement in the company's strategic direction [2] - The company has initiated a search for a new Chief Financial Officer to ensure a seamless transition [4] Contributions and Background - Mr. Iglesias has been with Codere Online since 2021 and has played a significant role in its growth, including leading the company through its successful public listing in 2021 via a merger with DD3 Acquisition Corp. II [3] - Prior to joining Codere Online, Mr. Iglesias spent six years at Codere Group, serving as Global Head of Corporate Development and Deputy CFO [3] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services through its website and mobile applications [5] - The company is part of Codere Group, a multinational group with a strong presence in the private gaming industry across seven countries in Europe and Latin America [6]

Financial Data and Key Metrics Changes - Consolidated net gaming revenue was $55 million, roughly flat compared to the prior year period, primarily due to the devaluation of the Mexican peso [6][9] - On a constant currency basis, net gaming revenue would have been nearly $61 million, representing a 12% increase year-over-year [6][9] - Adjusted EBITDA was positive $2.3 million in the second quarter, with a contribution of $6.3 million from the Spanish business, which is 5% above the prior year [10][11] - The company ended the quarter with €45 million in total cash, of which approximately €41 million was available [17] Business Line Data and Key Metrics Changes - The casino segment contributed 61% of total net gaming revenue, indicating a stabilization around this mix [6] - In Colombia, net gaming revenue decreased by $1.6 million, partially offset by an $800,000 increase in Panama, which reflects a doubling of net gaming revenue in that market [9][10] - In Mexico, net gaming revenue was $29 million, a 3% increase from the prior year, despite a 19% devaluation of the peso impacting overall revenue [12][13] Market Data and Key Metrics Changes - The average monthly active customers increased by 7%, while the average monthly spend per active customer decreased by 5% due to the weaker peso [6][12] - The company acquired 78,000 first-time depositors, a 7% increase from the prior year [7][12] - The Mexican peso devaluation had a $5.7 million negative impact on net gaming revenue, but on a constant currency basis, revenue would have grown by 23% [13] Company Strategy and Development Direction - The company has regained compliance with Nasdaq listing requirements, alleviating concerns about its status as a publicly traded entity [5] - Marketing investments are expected to decrease in the second half of the year, which, along with a positive outlook for net gaming revenue, is anticipated to lead to higher EBITDA generation [11][39] - The company is focusing on the Mexican market, especially with the upcoming World Cup in 2026, which is expected to drive business growth [13][39] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in Spain remains challenging, with no immediate changes expected in regulations [24][25] - The company is optimistic about the back half of the year, citing strong returns from existing and new players in Mexico [39] - The VAT imposed in Colombia has significantly impacted revenue, leading to a focus on maintaining breakeven operations in that market [54][55] Other Important Information - The company has repurchased approximately 106,000 shares under its buyback plan, investing around $7.7 million [7] - The company is exploring opportunities for future investments as cash flow improves, although no specific plans have been announced [58][59] Q&A Session Summary Question: Performance in Spain and Competitive Environment - Management indicated that the competitive landscape in Spain remains tough, with no expected changes in the near future [24][25] - The impact of sports seasonality was noted, with expectations for stronger performance in the upcoming quarter [26][27] Question: Marketing Initiatives in Mexico - The marketing strategy is focused on lower LTV players, with ongoing testing of various channels [30][32] - Management clarified that the strategy is not a direct response to peso devaluation but part of ongoing user acquisition efforts [31] Question: Profitability Improvement in the Back Half - Factors contributing to expected profitability include the rolling off of certain sponsorships and improved unit economics in Mexico [36][39] Question: Growth Opportunities in Other Latin American Markets - Management expressed concerns about Colombia due to the VAT impact but noted success in Panama [54][55] - The company believes its successful strategies in Mexico can be replicated in other markets, albeit with higher costs [44][46] Question: GGR and VAT Impact in Colombia - Management acknowledged significant top-line impacts due to VAT, estimating a 40% reduction in expected revenue [68] - The viability of the Colombian market under current conditions remains uncertain and would require further analysis [70] Question: Share Repurchase Strategy - Discussions regarding share repurchases are ongoing at the board level, with a focus on opportunistic buying [75]