Codere Online Luxembourg, S.A. Q3 FY2024 earnings call

• Delisting process: Hearing panel for annual report filing scheduled for Jan 16, delisting stay continues until hearing. - Q3 net gaming revenue: €52M, 20% above Q3 2023; excluding peso impact, 32% growth. - Product mix: Casino segment contribution increasing due to seasonal sports betting decline. - Customer metrics: 15% increase in active customers, average monthly spend per active up 4% to €120, 67,000 first-time depositors with avg CPA €250. - Mexican peso devaluation: €3M headwind, constant currency growth 32% for Mexico. - FTDs: Down 3% Q3, 8% sequentially, driven by Colombia and Argentina declines, but active customers up 15% due to better retention.

Consolidated net gaming revenue grew by 20% to €52 million in Q3 2024. The Mexican business saw net gaming revenue grow 27% to €27 million. The Spanish business had net gaming revenue grow 11% to nearly €21 million. Adjusted EBITDA was €1.5 million in Q3, with contributions from Spain (€6 million) and Mexico (€1 million). Excluding the Mexican peso devaluation impact, Mexico's net gaming revenue would have had a 32% growth. Casino segment contribution is increasing due to seasonal sports betting decline. Active customers increased 15% in Q3, with average monthly spend per active customer up 4% to €120.

• Reiterating current guidance, expect to finish 2024 in upper range for net gaming revenue and adjusted EBITDA. - No 2025 guidance yet, focus on Q4 execution to close the year strongly.

• Mexican peso devaluation impact on revenue. - Potential legislative changes in Spain and Mexico affecting operations. - Competitive landscape changes in Mexico and Spain, including new competitors and possible reintroduction of restrictions in Spain.

Q: What's the flow-through to EBITDA from Mexican peso devaluation?

A: Oscar Iglesias said cost structure is overwhelmingly peso-denominated, but some centralized costs are hard currency denominated. - Q: Any surprises in cross-promotion from Copa America?

A: Aviv Sher said successful cross-promotion between sport and casino, with customers showing more casino engagement. - Q: Status of 20-F filing?

A: Oscar Iglesias said working on audit process, priority is to complete it. - Q: Gross profit payback period for higher CAC users?

A: Oscar Iglesias said paybacks are within a year in Spain, but varies by market. - Q: Impact of sport outcomes on hold in Q3?

A: Oscar Iglesias said some pull forward of activity in tournaments impacted results. - Q: Currency hedging for Mexican peso?

A: Oscar Iglesias said not near term, but may consider medium/long term. - Q: License expiries in Colombia?

A: Aviv Sher said will renew Colombian license if terms allow. - Q: Growth trajectory in 2025?

A: Oscar Iglesias said focused on Q4 execution, 2025 guidance later. - Q: Expansion into Latin American markets?

A: Aviv Sher said considering M&A or new markets, focused on disciplined capital allocation. - Q: Share buybacks?

A: Oscar Iglesias said discussed with Board, will continue discussion.