Codere Online Luxembourg, S.A. Q4 FY2024 earnings call

• Former auditor Marcum resigned in December, but MaloneBailey was onboarded as new auditor. NASDAQ granted extension until May 12, 2024 to file 2023 Annual Report. - Fourth quarter net gaming revenue was 53 million, 5% above Q4 2023; constant currency net gaming revenue was 57 million, 15% above prior year. - Casino segment contributed 62% of total net gaming revenue due to seasonal sport betting decline. - Average monthly active customers increased 6%, average monthly spend per active customer EUR120. - 71,000 first time depositors in Q4, with average CPA EUR211 (lowest since Q4 2023). - Board approved $5 million share buyback plan; shareholder meeting on March 3 to approve.

Consolidated net gaming revenue grew 5% to nearly 53 million. Spanish business revenue grew 10% to 23 million, while Mexico's net gaming revenue was flat at 25 million due to currency and sports betting margin headwinds. The casino segment contributed 62% of total net gaming revenue in Q4. Average monthly active customers increased 6%, with an average monthly spend per active customer of around EUR120. The fourth quarter had 71,000 first time depositors, and the average CPA was EUR211, the lowest since Q4 2023.

• Expect net gaming revenue of between 220 million and 230 million in 2025, a 6% increase versus 2024 at the midpoint. - Adjusted EBITDA expected in the range of 10 million to 15 million in 2025. - 2025 faces headwinds including weaker Mexican peso throughout the first half, new tax on deposits in Colombia, and less restrictive promotional environment in Spain.

• Currency fluctuations, particularly the devaluation of the Mexican peso impacting revenue. - Sports betting margin headwinds in Mexico. - New tax in Colombia potentially affecting business operations. - Competitive dynamics in markets leading to potential CPA pressure.

Q: Jeffery Stantial asked about guidance, Euro assumption, and CPA.

A: Oscar Iglesias and Aviv Sher discussed FX forecast, Colombia tax, and CPA drivers.

Q: Ryan Sigdahl asked about competitive dynamics in Mexico and Brazil.

A: Aviv Sher talked about Mexico's competitive landscape, technical issues, and Brazil partnerships.

Q: Michael Kupinski asked about Mexico's results, growth in other markets, and Argentina.

A: Aviv Sher discussed Mexico's nominal performance, growth in other markets, and Argentina's license issues