Codere Online Luxembourg (CDRO) Q2 2024 earnings summary

Executive summary

• Net gaming revenue reached €54.4 million in Q2 2024, up 39% year-over-year, driven by strong growth in Mexico and Spain, and supported by a busy sports calendar and robust casino growth.

• Adjusted EBITDA was €1.3 million in Q2 2024, marking a €6 million improvement over Q2 2023 and the second consecutive quarter of positive results.

• Average monthly active customers rose 16% to approximately 146,000, with average monthly spend per customer up 20% to €125.

• Board changes included the appointment of three new directors and Gonzaga Higuero as Chairman at the June 2024 AGM.

• Company expects to achieve profitability in its third year post de-SPAC and remains focused on sustainable, profitable growth.

Financial highlights

• Consolidated net gaming revenue for Q2 2024 was €54.4 million, with 59% from casino and 41% from sports betting.

• Adjusted EBITDA improved to €1.3 million in Q2 2024 from -€4.5 million in Q2 2023, with Spain contributing €6 million.

• Net income for H1 2024 was -€0.2 million, including a €1.1 million non-cash provision for employee incentives.

• Cash on balance sheet at quarter-end was €41 million, with €35 million available, marking the first sequential cash increase since listing.

• Negative net working capital position of €19 million as of June 30, 2024, about 9% of LTM NGR.

Outlook and guidance

• Full-year 2024 net gaming revenue outlook raised to €205–215 million, representing 22% growth at the midpoint.

• Adjusted EBITDA guidance set at €2.5–7.5 million for 2024, reflecting flexibility for further investment.

• Guidance reflects strong H1 performance and continued growth in core markets.

• Cautious on H2 due to potential Mexican peso volatility, but cost structure is also peso-denominated, mitigating some risk.