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    CDRO
    Earnings call· Jun 2026(Q2 FY26)

    Codere Online Luxembourg, S.A. Q2 FY26 earnings call CDRO

    Jul 30, 2026 Source

    Executive summary

    Codere Online Q2 FY26 — Record Revenue and Raised Full-Year Outlook

    Codere Online delivered a strong second quarter, achieving record net gaming revenue and significant profitability improvements, driven by solid execution in Spain and Mexico and favorable conditions in Colombia and Panama. The company raised its full-year guidance for both revenue and adjusted EBITDA, reflecting strong underlying performance and efficient marketing investments, while maintaining a disciplined approach to capital allocation.

    Highlights

    5

    • Consolidated net gaming revenue reached EUR 69.4 million, a 27% increase year-over-year, marking the highest quarterly revenue to date.

    • Adjusted EBITDA improved significantly to EUR 5.8 million, up from EUR 2.3 million in Q2 FY25, with the margin expanding to 8.4%.

    • Full-year 2026 net gaming revenue guidance raised to EUR 255 million - EUR 265 million (from EUR 235 million - EUR 245 million).

    • Full-year 2026 Adjusted EBITDA guidance raised to EUR 20 million - EUR 25 million (from EUR 15 million - EUR 20 million).

    • First-time depositors increased by 40% year-over-year to 108,000, with cost per acquisition improving to EUR 200 from EUR 217.

    Concerns

    2

    • Gaming taxes as a percentage of NGR increased materially, driven primarily by Mexico and Colombia.

    • Mexico saw a 10% sequential decline in active customers versus Q1 FY26 due to efforts to improve customer quality and reduce promotional abuse.

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2026 Net Gaming Revenue
    EUR 255 million to EUR 265 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    EUR 20 million to EUR 25 million
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Spain
    Market performing exceptionally well, benefiting from healthy customer acquisition, strong player engagement, and improved player values. Recovering market share in a mature, tightly regulated market.
    Average monthly active customers: +11% YoY
    		EUR 27.6 million25%8%EUR 7.8 million
    Mexico
    Largest market and key contributor to growth and profitability. Improved customer quality and reduced promotional abuse led to higher spend per active customer. Benefited from a more rational competitive environment than anticipated.
    Average monthly active customers: slightly up YoYAverage monthly active customers: -10% QoQNGR growth driven by higher spend per active customer
    		EUR 36.1 million24%—EUR 3.6 million
    Other markets (Colombia, Panama, City of Buenos Aires)
    Strongest contributor from Colombia following the removal of 19% VAT on customer deposits, re-engaging players and recovering NGR/deposit levels. Panama continued to perform very strongly, ahead of expectations, especially during the World Cup.
    		EUR 5.7 million50%——

    Operational metrics

    21
    Consolidated Net Gaming Revenue
    EUR 69.4 million+27% YoY
    Q2 FY26

    Highest quarterly revenue to date.

    Casino revenue mix
    62%
    Q2 FY26

    Consistent with recent quarters.

    Sports betting revenue mix
    38%
    Q2 FY26

    Contribution increased slightly due to the World Cup.

    Average Monthly Active Customers (MAC)
    173,000+12% YoY
    Q2 FY26

    All operating KPIs improved in the quarter.

    Average Monthly Spend per Customer
    EUR 134+13% YoY
    Q2 FY26

    Reflecting strong engagement and a higher player value base.

    First-Time Depositors (FTD)
    108,000+40% YoY
    Q2 FY26

    Nearly 40% more than in prior year quarter, supported by strong activity around the World Cup.

    Cost per Acquisition (CPA)
    EUR 200vs EUR 217 prior year quarter
    Q2 FY26

    Demonstrating continued efficiency of marketing investments.

    Adjusted EBITDA
    EUR 5.8 millionvs EUR 2.3 million Q2 FY25
    Q2 FY26

    Reflects strong momentum and improved profitability.

    Marketing expense
    EUR 26.2 millionincreased in absolute terms YoY
    Q2 FY26

    Significantly lower as a percentage of revenue.

    Adjusted EBITDA margin
    8.4%vs 4.3% Q2 FY25
    Q2 FY26

    Improved due to operating leverage and revenue scale.

    Total Cash
    EUR 63 million
    Q2 FY26

    Closed the quarter with strong cash position.

    Available Cash
    EUR 58 million
    Q2 FY26

    Increased from cash flow generation.

    Negative Working Capital
    EUR 25 millionin line
    Q2 FY26

    Supporting strong cash generation.

    Cash Flow Generated
    EUR 6.9 million
    Q2 FY26

    Reflects continued improvement in profitability and earnings conversion.

    World Cup unique users increase
    56%above 2022 tournament
    Q2 FY26

    Overall performance was outstanding and materially ahead of the 2022 tournament.

    World Cup new customers acquired
    40,000
    Q2 FY26

    Acquired around the event.

    World Cup stakes
    EUR 63 million+180% above 2022 tournament
    Q2 FY26

    Demonstrating significantly greater scale and strong engagement.

    World Cup Net Gaming Revenue
    more than doubledcompared to 2022 World Cup
    Q2 FY26

    Despite generally favorable outcomes for customers.

    Marketing spend target
    EUR 90 million to EUR 100 million
    FY26

    Management aims to stay in this ballpark for full-year nominal marketing spend, potentially higher than 2025.

    Marketing spend as percentage of NGR target
    progressively coming down
    over time

    Management expects to continue reducing this percentage, aiming for 22%-28% in the long term.

    Share repurchase authorization
    —
    through end of 2026

    No repurchases in Q2 FY26; authorization remains in place.

    Deals & partnerships

    1
    nullEvaluating strategic options for licenses and acquisitions in Latin America.

    Looking at opportunities in markets like Uruguay, Chile, and others that are regulating online gaming. This could involve acquiring licenses or pure acquisitions.

    Risks & headwinds

    4
    Increased gaming taxesQ2 FY26

    Material increase in gaming taxes as a percent of NGR

    Mitigation: null

    Regulatory changes in Spaincoming ahead in the future

    Joint deposit limits and VIP regulation changes

    Mitigation: Management believes they can overcome them and continue growth.

    Competitive environment in Mexicoongoing

    "harsh," "getting crowded," with "heavy spenders" offering significant free money promotions.

    Mitigation: Relying on strong brand, retention schemes, and promotional activity for core/VIP customers; continuing to invest in top-of-mind and promotions.

    Lack of liquidity affecting share priceongoing

    null

    Mitigation: Hopeful that buyback strategy can help; company believes it performs well and should be valued more.

    What to watch in Q3 FY26

    4

    World Cup new customer retention

    next quarter
    Current40,000 new customers acquired; "looks okay," "better than expected" so far.
    TargetConfirmation of long-term retention and player value.

    Why it matters

    To assess the long-term value creation from the significant World Cup customer acquisition.

    It's still super early to say, right? The World Cup just ended a couple of weeks ago... So far, it looks okay. It looks better than expected. Probably next quarter, I can comment more accurate on that and give better details.

    Q&A highlights

    7

    Asked about retention and cross-sell of 40,000 new World Cup customers and why CAC decreased despite increased competition.

    Retention is looking "okay" and "better than expected" but it's too early to give exact figures, with summer and player finances impacting immediate post-tournament activity. CAC decreased because the company invested "around" the World Cup rather than directly in expensive broadcasts, leveraging its brand strength and prior investments.

    “We didn't invest directly into the World Cup broadcast, which was extremely high, extremely expensive. We tried to keep the money around the World Cup. And I think the strategy proved well. So we saw that the CPA went down.”

    asked by Jeffrey Stantial · answered by Aviv Sher

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 Performance and Guidance Raise

    Codere Online reported its highest quarterly net gaming revenue of EUR 69.4 million, a 27% year-over-year increase, driven by robust execution in Spain and Mexico. This strong performance, coupled with improving conditions in Colombia and Panama, led the company to raise its full-year 2026 net gaming revenue guidance to EUR 255 million - EUR 265 million and adjusted EBITDA guidance to EUR 20 million - EUR 25 million.

    02

    World Cup Impact and Marketing Efficiency

    The World Cup significantly boosted performance, with unique users up 56% (ex-Colombia) and stakes reaching EUR 63 million, a 180% increase compared to the 2022 tournament. Despite increased activity, the cost per acquisition (CPA) improved to EUR 200 from EUR 217 in the prior year, demonstrating efficient marketing investments and the strength of the brand.

    03

    Geographic Performance Highlights

    Spain's net gaming revenue grew 25% to EUR 27.6 million, benefiting from strong retention and improved player values. Mexico, the largest market, saw NGR increase 24% to EUR 36.1 million, driven by higher spend per active customer and a favorable competitive environment. Other markets, including Colombia and Panama, grew over 50% to EUR 5.7 million, with Colombia benefiting from the removal of the 19% VAT on customer deposits.

    04

    Profitability and Cash Generation

    Adjusted EBITDA reached EUR 5.8 million, up from EUR 2.3 million in Q2 FY25, with the adjusted EBITDA margin expanding to 8.4%. The company generated EUR 6.9 million in cash flow during the quarter, increasing available cash to EUR 58 million, and maintains a strong balance sheet with no financial debt.

    05

    Marketing Strategy and Operating Leverage

    Marketing expense, while increasing in absolute terms to EUR 26.2 million, decreased as a percentage of NGR to 37.7% from 41.5% in Q2 FY25. Management expects to continue gradually reducing marketing investment as a percentage of NGR, driving further operating leverage and profitability improvements. The company is strategically increasing marketing spend in Spain and Mexico where returns are attractive.

    06

    Capital Allocation and Strategic Flexibility

    Codere Online did not repurchase shares in Q2, but the authorization remains in place. The company is evaluating strategic options, particularly in Latin America for licenses and potential acquisitions, to leverage its strong cash position and drive future growth, while also considering share buybacks.

    AI-generated summary of the company’s earnings call. Not investment advice.