Codere Online Luxembourg SA (FRA:J9T)

Q2 2026 Codere Online Luxembourg SA Earnings Call Transcript

Jul 30, 2026 / 12:30 PM GMT

Release Date Price: €8.05 (-1.23%)

Transcript

Key Points

Positve

Codere Online Luxembourg SA (CDRO) delivered its highest quarterly revenue to date at EUR69.4 million, a 27% year-over-year increase, driven by strong execution in Spain and Mexico.
The company raised its full-year 2026 net gaming revenue guidance to between EUR255 million and EUR265 million, up from the previous range of EUR235 million to EUR245 million.
Adjusted EBITDA improved significantly to EUR5.8 million in Q2 2026, compared to EUR2.3 million in Q2 2025, with the company also raising its full-year EBITDA guidance to EUR20 million to EUR25 million.
Customer acquisition efficiency improved, with 108,000 first-time depositors acquired in the quarter (up 37% year-over-year) and cost per acquisition declining to approximately EUR200 from EUR217.
The World Cup performance was outstanding, with stakes reaching approximately EUR63 million (180% above the 2022 tournament) and nearly 40,000 new customers acquired, highlighting the company's increased scale and engagement.
Spain's net gaming revenue grew nearly 25% year-over-year to EUR27.6 million, driven by strong retention, healthy acquisition, and improved player values, with the company recovering market share in a mature market.
Mexico, the company's largest market, saw net gaming revenue increase 24% year-over-year to EUR36.1 million, benefiting from a more rational competitive environment and higher spend per active customer.
Colombia benefited from the removal of the 19% VAT on customer deposits, allowing the company to reengage players and recover activity levels to pre-tax levels.
The company ended the quarter with a strong balance sheet, holding approximately EUR63 million in total cash with no financial debt, providing significant strategic flexibility.
Marketing expense as a percentage of net gaming revenue decreased to 37.7% from 41.5% in the prior year quarter, demonstrating improving operating leverage.

Negative

Average monthly active customers in Mexico declined 10% sequentially from Q1 2026, as the company intentionally cleaned its customer database to improve quality, which may impact short-term growth metrics.
The competitive environment in Mexico is intensifying, with new large competitors entering the market and offering aggressive promotional incentives like large free bets, requiring continued investment to maintain market position.
Colombia still faces tax uncertainty, as an additional layer of tax remains in place, preventing the company from resuming full marketing investment until a more favorable regulatory environment is confirmed.
The company did not repurchase any shares during the second quarter, despite having an active buyback authorization, which may disappoint investors seeking immediate capital return.
The World Cup's impact on customer retention is still uncertain, as it is too early to determine if the 40,000 new customers acquired during the tournament will remain active long-term, with historical patterns suggesting many may be event-specific bettors.
Spain faces upcoming regulatory changes, including new restrictions on VIP players and joint deposit limits, which could pose headwinds to future growth in the market.
The company's share price suffers from a lack of liquidity compared to larger peers like Rush Street and Super Group, which may limit the effectiveness of buyback programs and investor interest.
Gaming taxes as a percentage of net gaming revenue increased materially in the quarter, driven primarily by Mexico and Colombia, putting pressure on margins.
The strong Mexican peso has increased marketing costs in euro terms, as local currency spending translates into higher euro-denominated expenses.
The implied EBITDA flow-through for the second half of 2026 is lower than the first half, suggesting potential for slower margin expansion in the coming quarters.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CDRO.OQ - Codere Online Luxembourg SA
Q2 2026 Codere Online Luxembourg SA Earnings Call
Jul 30, 2026 / 12:30PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Hello, everyone.

Thank you for joining us and welcome to Codere Online second quarter 2026 results.

After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again.

I will now hand the conference over to Guillermo Lancia, Director of Investor Relations and Communications. Guillermo, please go ahead.

--------------------------------------------------------------------------------
Unidentified_2 [2]
--------------------------------------------------------------------------------
Thanks, operator, and welcome everyone to Coderet Online's

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.