Codere Online Luxembourg (CDRO) Q1 2025 earnings summary

Executive summary

• Net gaming revenue for Q1 2025 reached €57 million, up 8% year-over-year (17% in constant currency), with growth driven primarily by Mexico and casino contributing 61% of total NGR.

• Average monthly active users increased 13% to 161,300, while average spend per active dropped 5% to €118.

• 91,000 first-time depositors were acquired, up 21% year-over-year and 25% sequentially, with a 28% conversion rate and average CPA at €198.

• Net loss was €0.7 million in Q1 2025, compared to net income of €3.4 million in Q1 2024.

• Share buyback plan of up to $5 million initiated, with $500,000 spent repurchasing 68,384 shares at $6.63 average price by May 15.

Financial highlights

• Adjusted EBITDA was €1.8 million, marking the fifth consecutive quarter of positive adjusted EBITDA and up 5.9% from Q1 2024.

• Mexican revenue grew 15% to €30.5 million; Spain declined 2% to €21.9 million.

• Net gaming revenue growth driven by a 13% increase in active customers, mainly in Mexico.

• Total cash at March 31, 2025 was €42 million, with €37 million available for operations.

• Negative net working capital position of €18 million, about 8% of LTM net gaming revenue.

Outlook and guidance

• 2025 guidance reiterated: net gaming revenue of €220–230 million and adjusted EBITDA of €10–15 million.

• Management believes current trends and planned investments support achieving full-year guidance, with confidence bolstered by major sporting events.

• Management expects to resolve Nasdaq compliance upon filing the 2024 annual report.