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

• Regained compliance with NASDAQ listing requirements after filing 2023 and 2024 annual reports. - Delivered EUR 55 million in net gaming revenue in Q2 2025, roughly flat vs prior year but 12% up in constant currency. - Casino segment contribution stabilized at around 60% of total net gaming revenue. - Acquired 78,000 first-time depositors, 7% above prior year. - Repurchased around 106,000 shares under the buyback plan for approx. EUR 700,000. - Adjusted EBITDA was EUR 2.3 million in Q2, with Spanish business contributing EUR 6.3 million (5% above prior year) and Mexico slightly negative due to increased marketing investment. - Expect marketing spend in back half to be less than front half, leading to higher EBITDA in back half.

In Q2 2025, Codere Online's consolidated net gaming revenue was EUR 55 million. The Casino segment contributed 61% of total net gaming revenue. In terms of other segments, net gaming revenue in Colombia was EUR 1.6 million lower, while Panama saw a EUR 0.8 million higher net gaming revenue (doubling compared to the prior year). Mexico's net gaming revenue was EUR 29 million, 3% above the prior year period, with a 36% increase in average monthly active customers but a 5% decrease in average monthly spend per active customer. Spain's net gaming revenue was flat at EUR 22 million.

• Expect net gaming revenue for 2025 to be between EUR 220 million and EUR 230 million. - Expect adjusted EBITDA for 2025 to be in the range of EUR 10 million to EUR 15 million. - Marketing spend in the back half of 2025 is expected to be less than the front half, leading to higher EBITDA generation in the back half. - Positive outlook due to strong returns from existing and new players in Mexico and better than expected evolution of the Mexican peso going into year-end.

• Competitive landscape in Spain remains challenging with competitors offering generous welcome bonuses. - Impact of Mexican peso devaluation on net gaming revenue. - Regulatory changes in Colombia, such as the value-added tax on player deposits, affecting net gaming revenue in that market. - Uncertainties in other Latin American markets and their potential impact on business performance.

Q: How is the competitive environment in Spain since the reintroduction of welcome bonuses?

A: Aviv Sher stated the competitive landscape in Spain is still hard due to competitors spending to bring players onto their platforms with generous welcome bonuses, but the company has found a formula to keep on track with goals and KPIs.

Q: Can the playbook from Mexico be applied to other Latin American countries?

A: Aviv Sher said the playbook can be applied, but more money is needed as media prices are higher and competition is harsher in new territories.

Q: What is the impact of the VAT on deposits in Colombia on net gaming revenue and GGR?

A: Oscar Iglesias mentioned the VAT had a significant impact on top line, with the company taking approaches to mitigate EBITDA and cash impact, but it was a fluid competitive environment throughout the quarter.

Q: Why isn't the company leaning more into share repurchases?

A: Oscar Iglesias said it's a discussion at the Board level, with capital allocation decisions being Board decisions and discussions ongoing.