Codere Online Luxembourg, S.A. Q2 FY2025 earnings call

• Regained compliance with NASDAQ listing requirements after filing annual reports. - Delivered EUR 55 million in net gaming revenue in Q2 2025, flat vs prior year but up 12% in constant currency. - Casino segment contribution 61% of total net gaming revenue. - 78,000 first-time depositors in the quarter, 7% above prior year, average CPA EUR 218. - Adjusted EBITDA was positive EUR 2.3 million in Q2, with Spanish business contributing EUR 6.3 million, 5% above prior year, and Mexico slightly negative due to marketing investment. - Cash on balance sheet as of June 30 was EUR 45 million, with EUR 41 million available.

In the second quarter of 2025, Codere Online's net gaming revenue was EUR 55 million, roughly flat versus the prior year due to the devaluation of the Mexican peso. In constant currency terms, it would have been nearly EUR 61 million, 12% above the prior year. The Casino segment contributed 61% of total net gaming revenue. Net gaming revenues were driven by a 7% increase in average monthly active customers, partially offset by a 5% decrease in average monthly spend per active customer. The other segments: net gaming revenue in Colombia was EUR 1.6 million lower, while Panama had EUR 0.8 million higher net gaming revenue, doubling vs prior year.

• Expect net gaming revenue between EUR 220 million and EUR 230 million in 2025. - Expect adjusted EBITDA in the range of EUR 10 million to EUR 15 million in 2025. - Marketing spend in the back half of the year is expected to be less than the front half, with higher EBITDA generation anticipated in the back half due to positive outlook for net gaming revenue and better Mexican peso evolution.

• Currency devaluation impact, particularly the Mexican peso devaluation affecting net gaming revenue. - Competitive landscape in Spain with ongoing regulation challenges and aggressive welcome bonuses from competitors. - Impact of value-added tax on player deposits in Colombia affecting net gaming revenue in that market.

Q: Jeff Stantial asks about performance in Spain, competitive environment and sports seasonality impact.

A: Aviv Sher states the competitive landscape in Spain is still hard, with competitors offering generous welcome bonuses, and seasonality impacts were seen but expecting strong start in current quarter. Oscar Iglesias adds the Club World Cup helped bridge slow sports betting period.

Q: Michael Kupinski inquires about Mexico's growth and applying playbook to other Latin American markets.

A: Aviv Sher says the playbook can be applied, noting Mexico had favorable factors like lesser competition and local presence, but more money needed for replication in other markets. Oscar Iglesias mentions exploring omnichannel opportunities and looking to replicate strategy elsewhere.

Q: Ryan Sigdahl asks about Colombia's NGR, GGR impact and repurchases.

A: Oscar Iglesias explains the VAT impact led to top line impact, with strategies deployed to mitigate EBITDA impact. On repurchases, says Board is analyzing capital allocation decisions.

Q: Arthur Roulac asks about share repurchases and NOLs.

A: Oscar Iglesias states different repurchase strategies used, and NOLs exist in Mexico and Spain, relevant in potential future transactions.