Codere Online Luxembourg (CDRO) Q1 2025 earnings summary

Executive summary

• Net gaming revenue for Q1 2025 reached €57 million, up 8% year-over-year (17% in constant currency), driven primarily by Mexico, while Spain was flat or slightly declined.

• Casino segment contributed 61% of total net gaming revenue, with sports betting at 39%.

• Customer acquisition was strong, with 91,000 first-time depositors and a 28% conversion rate; average CPA was approximately €198.

• Average monthly actives rose 13% to about 161,000, but average spend per active dropped 5% to €118.

• Regained NASDAQ compliance after filing the 2023 annual report; expects to resolve remaining compliance issues by end of May with the 2024 annual report filing.

Financial highlights

• Consolidated net gaming revenue grew 8% to €57 million, led by 15% growth in Mexico (€30.5 million); Spain was flat or slightly down at €21.9 million.

• Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive results and a margin of 3.2%.

• Net income for Q1 2025 was negative €0.7 million.

• Net working capital ended at negative €18 million, about 8% of LTM net gaming revenue.

• Available cash as of March 31 was €42 million, with €37 million available for operations.

Outlook and guidance

• Reiterated 2025 guidance: net gaming revenue of €220–230 million and adjusted EBITDA of €10–15 million.

• Confident in meeting full-year guidance, supported by upcoming sporting events and operational plans.

• Management expects to resolve Nasdaq compliance upon filing the 2024 annual report.

• Expect difficult Q2 comparison due to currency headwinds, but anticipate less impact in subsequent quarters.