Codere Online Luxembourg S.a Stock Earnings Reports

Codere Online delivered a strong start to 2026 with consolidated net gaming revenue (NGR) of EUR 64.4m in Q1, up 13% year‑over‑year and 6% sequentially. Casino accounted for ~63% of revenue while sports betting was ~37%. Average monthly active customers rose to ~183k (+14% YoY) and average monthly spend per active was EUR 117 (≈‑1% YoY). Q1 adjusted EBITDA was EUR 6.0m (vs. EUR 1.8m in Q1 2025), lifting LTM adjusted EBITDA to EUR 18m and improving margins (Q1 adj. EBITDA margin ≈9% vs. 3% a year ago). Key markets: Mexico remains the largest market (Q1 NGR EUR 34.6m, +13% YoY; ≈53% of LTM NGR) and Spain showed continued strength (Q1 NGR ~EUR 25.5m, +16% YoY). Acquisition activity: ~90k FTDs in Q1 at an average CPA of EUR 212, reflecting a shift toward higher‑value cohorts and some competitive pressure on CAC. Cash position: total cash EUR 56m (≈EUR 51m available) and a structural negative working capital of ~EUR 22m supporting cash generation; Q1 operating cash flow was EUR 6.5m. Capital allocation: no buybacks executed in Q1 though the share buyback program remains available through 2026. Management maintained 2026 guidance: NGR EUR 235–245m and adjusted EBITDA EUR 15–20m, with a potential outlook reassessment after H1 if trends persist. Key near‑term considerations for investors: (1) continued top‑line growth driven by active customer expansion, (2) marketing spend and CAC dynamics (CPA elevated to EUR 212) are the main levers for margin expansion, (3) regulatory and promotional changes in Mexico (tighter promo rules) are improving customer quality but have lowered sequential actives into Q2, and (4) potential modest World Cup uplift is expected but not material to full‑year NGR. Risks include regulatory/tax changes across markets, competitive entry impacting CAC, and timing variability in cash flow items.