Codere Online Luxembourg, S.A. Q1 FY2024 earnings call

• Delivered €536 million in net gaming revenue, up nearly €14 million or 34% y-o-y. Casino segment contributed 56% of net gaming revenue. • Average monthly spend per customer increased 16% to €123, and average monthly active customers also increased. • Close to launching operation in Mendoza, Argentina; renewed front-of-shirt shared sponsorship with Rayados in Mexico for next four seasons. • Adjusted EBITDA was positive €1.7 million in Q1 2024, nearly €5 million better than Q1 2023. Mexico posted positive adjusted EBITDA for the first time. • In Spain, net gaming revenue increased 21% with a 25% increase in active customers to 50,000. In Mexico, net gaming revenue was €27 million, up 51% y-o-y and 6% sequentially, driven by a 26% increase in active customers and 20% higher spend per active customer.

Consolidated net gaming revenue grew by 34% to €536 million in the first quarter of 2024. The casino segment accounted for 56% of net gaming revenue. The Mexican business saw net gaming revenue growth of 51% to €27 million, while the Spanish business had a 21% growth to over €22 million. Other markets (Colombia, Panama, Argentina) reduced losses by half and contributed nearly €1 million to the overall improvement.

• Increased net gaming revenue outlook from €185-€200 million to €195-€210 million. • Maintain target to be adjusted EBITDA and cash flow positive for the year. • Expect better visibility on adjusted EBITDA performance after high profile tournaments in summer (Euro Cup, Copa America, Olympics).

• Regulatory changes in Spain could impact user acquisition returns and strategy. • Competitive landscape in Mexico with new competitors entering and incumbents adjusting strategies. • Lower ROI in other markets (Colombia, Panama, Argentina) posing challenges for investment.

Q: Thoughts on how the Spanish Supreme Court's overturn of restrictions might impact the business?

A: Monitoring closely; restrictions likely to be lifted short-term. Adjusting to market with different offers and evaluating self-regulation. It will take a couple of quarters to see full impact.

Q: How is the strategy targeting iCasino led players?

A: Launching campaigns focused on casino, buying media in different areas, targeting casino sites/keywords and Facebook casino play players. Shifting investment where ROI is better. Developing casino technology and gamification.

Q: Competitive landscape in Mexico?

A: New competitors like Betano entering with strong marketing investment. Main competitors keep growing, market is growing but more competitors are coming in.

Q: Argentina application process and comparison to Buenos Aires?

A: Argentina has regional licenses. Mendoza launch is upcoming, but getting license in Buenos Aires is through partnership or M&A. Argentina's environment with elections and reforms makes it challenging but still focused on the market.

Q: Crossover between casino and sports betting customers?

A: Crossing players from sports to casino is a secondary effort, rates are improving but stable. Main effort is bringing casino first players.

Q: Development of additional markets?

A: Continue to invest where ROI is best. Other markets (Colombia, Panama) have improving ROI but still subscale. Focus on core markets Mexico and Spain for now.

Q: Seasonal impact of Easter holiday?

A: Marginal impact, no significant seasonal effect seen. Cash impact due to Easter holiday affecting cash in transit but not meaningful year-on-year.

Q: Impact of retail parent company's issues on Codere?

A: No impact on Codere at this point.

Q: Split of new revenue guidance by Spain and Mexico?

A: Don't provide segment level or country level guidance, but seeing strong growth in core markets and continuing the path.