Codere Online (CDRO, Financial) has reported a promising start to the year 2025, achieving a net gaming revenue of EUR 57.0 million in the first quarter, marking an 8% growth over the same period in the prior year. In Mexico, the company experienced a notable 15% increase in net gaming revenue, reaching EUR 30.5 million, despite a 16% devaluation of the Mexican peso. Conversely, Spain's net gaming revenue saw a slight decline, recording EUR 21.9 million compared to the previous year's figures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Codere Online Luxembourg SA (CDRO, Financial) is $11.23 with a high estimate of $13.88 and a low estimate of $9.91. The average target implies an upside of 40.76% from the current price of $7.98. More detailed estimate data can be found on the Codere Online Luxembourg SA (CDRO) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Codere Online Luxembourg SA's (CDRO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CDRO Key Business Developments
Release Date: February 20, 2025
- Net Gaming Revenue: EUR 53 million in Q4 2024, a 5% increase from Q4 2023.
- Constant Currency Net Gaming Revenue: EUR 57 million, a 15% increase from the prior year period.
- Spanish Business Revenue: EUR 23 million, a 10% increase from the prior year.
- Mexican Business Revenue: EUR 25 million, flat compared to the prior year.
- Adjusted EBITDA: Positive EUR 1.9 million in Q4 2024.
- Full Year Adjusted EBITDA: EUR 6.4 million for 2024.
- Average Monthly Active Customers: 6% increase in Q4 2024.
- Average Monthly Spend per Active Customer: Approximately EUR 120.
- First-Time Depositors (FTDs): 71,000 in Q4 2024, a sequential increase from 67,000 in Q3 2024.
- Average Cost Per Acquisition (CPA): EUR 211, the lowest since Q4 2023.
- Total Cash on Balance Sheet: EUR 40 million as of December 31, 2024.
- Net Working Capital Position: Negative EUR 17.5 million.
- 2025 Net Gaming Revenue Outlook: EUR 220 million to EUR 230 million.
- 2025 Adjusted EBITDA Outlook: EUR 10 million to EUR 15 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Codere Online Luxembourg SA (CDRO, Financial) reported a 5% increase in net gaming revenue for Q4 2024, reaching EUR 53 million.
- The company's Spanish business saw a 10% revenue growth, contributing significantly to the overall performance.
- Adjusted EBITDA was positive at EUR 1.9 million for the fourth quarter, marking consistent profitability throughout 2024.
- The company experienced a 6% increase in average monthly active customers, indicating strong customer retention and engagement.
- A share buyback plan of up to EUR 5 million was approved, reflecting confidence in the company's financial position and future prospects.
Negative Points
- The Mexican Peso's devaluation by 14% negatively impacted net gaming revenue, which would have been 15% higher on a constant currency basis.
- The company faces challenges from a new tax on deposits in Colombia, which could affect future investments in the region.
- Despite a 6% increase in active customers, first-time depositors (FTDs) dropped by 10% compared to the previous year.
- The competitive landscape in Mexico remains challenging, with a lower sports betting margin impacting revenue.
- The company's guidance for 2025 reflects a conservative outlook due to potential headwinds, including currency fluctuations and regulatory changes.
