管理層發言
Hello, everyone. Thank you for joining us, and welcome to Codere Online's Second Quarter 2026 Results. (Operator provided instructions.) I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications. Guillermo, please go ahead.
Thanks, operator, and welcome, everyone, to Codere Online's earnings call for the second quarter of 2026. Today, you will hear from our CEO, Aviv Sher; and CFO, Marcus Arildsson. Please note that figures reflected in today's presentation are preliminary and unaudited and include certain non-IFRS financial metrics, which should be considered in addition to our IFRS results. Reconciliations and further details are available in the appendix. During this call, we will make forward-looking statements, which are subject to risks and uncertainties. While these statements reflect our current expectations, we undertake no obligation to update them after this call. A replay and transcript will be available at codereonline.com where investors can also sign up for e-mail alerts. With that, I will go ahead and pass the call on to Aviv.
Thanks, Guillermo, and thank you all for joining us today. The second quarter was a standout quarter for Codere Online. We delivered our highest quarterly revenue to date alongside strong profitability and cash generation. Revenue growth accelerated meaningfully versus an already strong first quarter, driven by solid execution in Spain and Mexico and improving conditions in Colombia and Panama, providing us with a solid position and confidence to raise our outlook for the full year. Starting with the highlights for the second quarter of 2026 on Page 8. We delivered consolidated net gaming revenue of EUR 69.4 million, representing a 27% increase versus the second quarter of last year and a significant sequential acceleration versus the first quarter. Casino accounted for 62% of revenue during the period, while sports betting represented the remaining 38%. These trends are consistent with recent quarters, although the contribution from sports increased slightly due to the World Cup. All operating KPIs improved in the quarter with average monthly active customers reaching approximately 173,000, up 12% compared to Q2 of last year, and average monthly spend per customer up 13% year-over-year to EUR 134, reflecting both strong engagement and a higher player value base. On the acquisition side, we acquired around 108,000 first-time depositors during the quarter, nearly 40% more than in the prior year quarter. Once again, supported by strong activity around the World Cup, cost per acquisition improved to approximately EUR 200, demonstrating the continued efficiency of our marketing investments. Most importantly, based on strong performance delivered in the quarter and the momentum we continue to see across the business, we are raising our guidance for the full year of 2026. We are now expecting gaming revenue of between EUR 255 million to EUR 265 million compared with our previous guidance of EUR 235 million to EUR 245 million. We are also raising guidance for adjusted EBITDA to between EUR 20 million to EUR 25 million compared with our prior outlook of EUR 15 million to EUR 20 million. Marcus will cover later the different factors behind our decision to raise guidance. With respect to capital allocation, we did not repurchase any shares during the second quarter. As a reminder, our share repurchase authorization remains in place through the end of 2026. We continue to take a disciplined approach to capital allocation and believe maintaining a strong balance sheet provides important strategic flexibility as we execute our growth strategy and evaluate opportunities to create shareholder value. Before moving on, I would like to briefly comment on the World Cup, which impacted both our Q2 and Q3 results. Overall, performance was outstanding and materially ahead of the 2022 tournament. Excluding Colombia, unique users were approximately 56% above the previous World Cup level, and we acquired nearly 40,000 new customers around the event. The stakes reached around EUR 63 million, approximately 180% above the previous tournament, demonstrating the significantly greater scale of the business and the strong engagement of our customers. Net gaming revenue more than doubled compared to the 2022 World Cup despite generally favorable outcomes for the customers. We believe these results highlight the significant progress Codere Online has made over the last four years in terms of scale, customer engagement and monetization. With that, I will now hand the call over to Marcus to review the financial performance in more detail.
Hello, everyone. Turning to Slide 10. You can see our consolidated net gaming revenue and adjusted EBITDA performance by country for the second quarter of 2026. Starting with net gaming revenue. We generated EUR 69.4 million during the quarter, representing growth of 27% compared to the second quarter of 2025. Both Spain and Mexico delivered excellent performances and were the primary drivers of growth. In Spain, net gaming revenue increased by EUR 5.5 million year-over-year to EUR 27.6 million, representing growth of nearly 25%. The market continues to perform exceptionally well and reflects both healthy customer acquisition and strong player engagement. In Mexico, net gaming revenue increased by EUR 7.1 million to EUR 36.1 million, representing growth of approximately 24% versus the second quarter of last year. Mexico remains our largest market and continues to be a key contributor to both growth and profitability. Our other markets, which include Colombia, Panama and the City of Buenos Aires, generated EUR 5.7 million of net gaming revenue during the quarter, up more than 50% year-over-year. The strongest contributor came from Colombia following the removal of the 19% VAT on customer deposits which was in effect during most of 2025. We have been able to reengage customers who had previously reduced activity due to the tax and have now recovered NGR and deposit levels broadly in line with those achieved before the tax was introduced. The attractive market in Panama continued to perform very strongly during the quarter, ahead of our expectations and especially during the World Cup. Turning to profitability. Adjusted EBITDA reached EUR 5.8 million in the quarter compared to EUR 2.3 million in the second quarter of last year. Within that, Spain contributed EUR 7.8 million, while Mexico delivered EUR 3.6 million, reflecting the operating leverage inherent in the business as revenue continues to scale. Overall, the second quarter reflects strong momentum across the business, continued revenue growth in our core markets and a further improvement in profitability. Turning to our consolidated P&L on Page 11. We can observe that marketing expense was EUR 26.2 million during the quarter, an increase in absolute terms versus last year, but significantly lower as a percentage of revenue. Marketing represented 37.7% of NGR compared to 41.5% in the second quarter of 2025. We continue to see attractive growth opportunities across our markets and are therefore comfortable investing behind them while improving profitability. Additionally, given the good performance we have been seeing this year, we decided to make some incremental investment in marketing, both in Spain and Mexico, and the acceleration of our top-line growth reflects just that. Going forward, and as has been the case since 2022, we expect to continue to gradually reduce marketing investment as a percentage of NGR with a direct positive impact on adjusted EBITDA. Gaming taxes as a percent of NGR increased materially in the quarter, driven primarily by Mexico and Colombia. In Colombia, the 19% VAT tax on deposits I mentioned earlier is now levied on gross gaming revenue. Beyond marketing, platform and content costs continue to benefit from scale, while adjusted EBITDA margin improved to 8.4% compared with 4.3% in the second quarter of last year. Now turning to Page 12. Net gaming revenue increased by 27% year-over-year, driven by a combination of customer growth and higher spend per active customer. Average monthly active customers increased by 12% to approximately 173,000 during the quarter. At the same time, average monthly spend per active customer increased by 13% versus last year, reaching EUR 134. We acquired approximately 108,000 first-time depositors during the quarter, representing growth of 37% versus Q2 of last year, while cost per acquisition improved to EUR 200 versus EUR 217 in the prior year quarter. This reflects strong execution across both acquisition and retention as well as a favorable market environment in our Codere jurisdictions. Turning to Spain on Page 13. Net gaming revenue reached EUR 27.6 million during the second quarter, up 25% versus the same period last year and 8% sequentially. Average monthly active customers increased by approximately 11% year-over-year. Spain continues to perform ahead of our expectations. The market is benefiting from strong retention, healthy acquisition and improved player values. Importantly, since the third quarter of 2025, we are seeing higher player values that have allowed us to increase marketing investment while still generating attractive returns. Spain remains a mature and tightly regulated market. And while we're benefiting from structural growth in that market, we're also recovering market share, which makes the level of growth we're currently achieving particularly encouraging. Moving now on to Mexico on Page 14. Net gaming revenue increased 24% year-over-year in the second quarter, reaching EUR 36.1 million. As we mentioned in our last call, we continue to improve the quality of our customer database, hence, the 10% sequential decline in active customers versus Q1 earlier this year. We still managed to grow it slightly versus the prior year period, thanks to strong acquisition around the World Cup, particularly with Mexico making it past the group stage. As such, the increase in net gaming revenue was driven almost entirely by higher spend per active customer, reflecting the actions we have taken to improve customer quality and reduce promotional abuse within the database. Mexico has also benefited from a more rational competitive environment than we anticipated at the beginning of the year. Combined with our strong brand, product offering and disciplined marketing approach, this has supported continued growth and improved profitability. Overall, Mexico remains our largest market and still one of our biggest growth opportunities to drive future value creation for Codere Online. On Page 15, turning to the balance sheet. We closed the quarter with approximately EUR 63 million of total cash, of which EUR 58 million was available. Our structural negative working capital position remained in line at approximately EUR 25 million or 10% of LTM net gaming revenue, supporting the strong cash generation of the business. The strength of our balance sheet with no financial debt and higher cash continues to provide significant flexibility as we evaluate capital allocation opportunities to support and drive future growth. Turning to Page 16. We generated EUR 6.9 million of cash flow during the second quarter, increasing available cash to EUR 58 million at quarter end. This result reflects the continued improvement in profitability as well as our ability to convert earnings into cash. As we have discussed in previous quarters, the timing of certain working capital and tax items can impact cash flow in any given quarter, and Q2 was positively impacted by some of them. As a rule of thumb, when looking at the full year, we would expect to convert a high proportion of our adjusted EBITDA into cash, with corporate income tax being the key relevant difference between the two. Turning to Page 18. As Aviv mentioned, we are raising guidance for full year 2026 net gaming revenue to between EUR 255 million and EUR 265 million and adjusted EBITDA of between EUR 20 million to EUR 25 million. The bridge between our original outlook and our revised guidance can be explained primarily by four primary factors. First, Colombia has benefited from the removal of the 19% VAT on deposits, allowing us to reengage players who had reduced or stopped playing due to the tax and bringing activity levels back to broadly in line with those seen before the measure was introduced last year. Second, Spain has continued to outperform our expectations, supported by stronger player values, which have encouraged us to add to our investment in marketing while maintaining attractive returns and profitability, on top of industry growth we are benefiting from. Third, Mexico has benefited from a more favorable competitive environment than originally anticipated with two relevant operators not currently active in the market. And fourth, the Mexican peso has remained stronger than assumed when we established our original outlook, having already contributed to more than EUR 4 million in the first half of the year. That said, the outlook revision is not explained by these factors alone. We have seen strong execution and strong underlying performance across virtually all areas of the business. Sports betting has performed exceptionally well, supported by a World Cup that exceeded our expectations, while our casino business has also continued to grow strongly. We have also seen meaningful improvements in markets such as Panama, which delivered its strongest quarter to date. Overall, we believe the second quarter demonstrates that Codere Online is firing on all cylinders with growth, player engagement, monetization and profitability all trending in the right direction. That's all from my end. I will now hand it back to Aviv for closing remarks.
Thank you, Marcus. Before we move to the Q&A session, I would like to thank all Codere Online employees for their hard work and dedication, especially around the World Cup. The strong results we reported today are a direct reflection of the efforts of our team across all our markets. I would also like to thank our shareholders and analysts for their continued support and interest in Codere Online. With that, operator, please open the line for questions.
分析師問答
(Operator provided instructions.) Your first question comes from the line of Jeff Stantial with Stifel.
Maybe why don't we start off on the World Cup, two-parter here. First, can you just talk about what you've seen in terms of retention and cross-sell of the 40,000 new bettors that you called out as the tournament has ended? And then second, it looks like CAC actually came down quarter-on-quarter and the conversion rate went up despite more competition around the tournament. So if you could just help us sort of think about that trend as well because it's a bit surprising.
Okay. Thanks, Jeff. Regarding the World Cup, we already see players that continue to play with us. It's still early to say definitively because the World Cup only ended a couple of weeks ago. The outcomes were favorable in some countries and less favorable in others, so people may be a little short on funds, plus it's summer, so we need more time to fully understand the long-term behavior of these players. So far, it looks okay and better than expected. Probably next quarter I can comment more accurately and give better details. Regarding the CAC, what was the exact question about the CAC?
Yes. I was asking because CAC was down quarter-on-quarter in Q2, and that's despite what I would have thought would be more competition and more folks investing around the World Cup. So just an explanation of what drove that.
Yes. I think we benefited because we did not invest as much in extremely expensive World Cup broadcast inventory as some competitors did. Our prior investments in brand and performance marketing likely led to stronger organic search and conversion during the tournament. In other words, our brand strength attracted people who were searching for betting and arrived at us because of prior investments. We also deliberately avoided some very high-cost broadcast channels. That strategy proved effective, and we saw lower CAC as a result.
That's great. And then maybe just shifting gears over to the cost side. It looks like just running some quick back-of-the-envelope that the updated guidance implies about 5% flow-through to EBITDA in the back half versus about mid-30% that you realized in the front half. Marcus, can you just help us think about some of the puts and takes here in bridging those two and then taking a step back more thematically, how you think about operating leverage in the model at this point in time and what the right go-forward EBITDA flow-through looks like, assuming that CAC and user acquisition remain somewhat stable?
Thanks, Jeff. First point, broadly speaking, we're not expecting any material differences in terms of flow-through to EBITDA between the first and second half. Over time, there are several P&L items that are more variable, notably gaming taxes and platform costs, and then payment method fees and similar items are also largely variable. There is leverage in the business, primarily through marketing and some overhead items. So over time, we expect to keep reducing marketing as a percentage of NGR, which will help EBITDA, and there is also some additional operating leverage in other expenses. But broadly speaking, we are not foreseeing anything new that will materially change the second half versus the first half. There are multiple factors at play, but that's the outlook we have for the second half.
No, I think you hit it for that question. I was just going to squeeze in, if possible, one more, which is Colombia. So some good news there with the VAT tax being removed. I'm curious how you're thinking about investment in that market, how much of a priority it is and whether there's a wait-and-see on marketing investment given there still seems to be some uncertainty on ultimate taxation.
Aviv, do you want to go ahead?
No. The fact is that taxes remain higher than we anticipated, but the current tax level does allow us to do good CRM and retention and to reinvest with our existing players. It's not yet attractive enough to justify broad new customer acquisition marketing with a strong ROI. We hope that with political changes later this year we may see a more business-oriented approach and potential removal of the extra tax layer. If that change happens and taxes return to prior levels, we will consider stepping up marketing investment. For now, we're happy with the ROI from our current customer base, and we'll be somewhat in a wait-and-see mode. I hope by the end of the year we'll know more and can decide on further marketing investment.
(Operator provided instructions.) The next question comes from the line of Ryan Sigdahl with Craig-Hallum Capital Group.
On the World Cup, what percent of new activations, new users, are also playing iCasino? And then if you have any context from the previous World Cup or previous soccer tournaments, I'm curious how that compares relative to your expectations?
I won't give exact figures, but a rough estimate is around 30% to 40% cross-activation with iGaming. So far, the new users fit into this profile. As I said earlier, let's keep this question for the next quarter, and I can report exactly if they behaved as expected and whether they continue with us without significant churn. So far, we are happy with the results. Of those who cross-activate, they tend to favor table games more than slots.
Great. Then just on monthly actives, in both Spain and Mexico sequentially they took a step down despite the World Cup. I know you mentioned a change in customer acquisition strategy, but can you elaborate what specifically you're focused on there, and whether that's concerning given the step down despite the World Cup?
No, I don't think it's concerning. Keep in mind we are entering the summer period. Also, these results capture roughly half of the World Cup effect in terms of timing. Spain reached the final, which influences activity patterns differently across months. The reduction in active users is, in part, intentional: we have been cleaning the database and focusing on higher-quality customers. That is why you see spend per customer increase and revenue grow even as actives decline sequentially. So looking at actives alone doesn't give the full picture, and overall we are very happy with the results.
Excellent. Then maybe just last one: with Spain winning, I might have expected a bigger sports betting impact. I know many unders hit. Can you talk through player behavior and activity from a betting standpoint in Spain specifically relative to them winning and other dynamics?
Players bet more than in the previous tournament. Early ties, such as the draw against Costa Rica, took a lot of money from players and suppressed activity in certain stages, but as Spain progressed betting on Spain increased. We also had more games overall compared to the prior tournament—about 25% more matches—so stakes were higher overall. In short, we saw more bets and higher stakes year-on-year, and the tournament structure and outcomes influenced when customers bet. Overall the results were strong from a bookie's standpoint.
(Operator provided instructions.) The next question comes from the line of Michael Kupinski with NOBLE Capital Markets.
Congratulations on your quarter. I have a couple of questions on nuances from the previous questions. Excluding the World Cup, how have betting volumes and customer activity trended during July? And are you seeing that momentum continue in the third quarter?
I can't give very specific figures for July, but it's important to note that during the World Cup we saw strong iGaming activity as well. In general, activity beyond sports was elevated: casino activity beat expectations across new players, core players and VIPs. Entering summer presents its own patterns, but the trajectory continues in a positive vector, and I'm optimistic for Q3. We have about three weeks until LaLiga returns, so August will be a period to navigate, but overall I'm optimistic.
Maybe just to add and reiterate what Aviv mentioned: both the casino side and sports performed well. The World Cup's effect on NGR fell roughly 50% in June and 50% in July versus the peak impact in the middle of the tournament, just to give some context.
You added approximately 40,000 new customers during the World Cup. Historically, what percentage of tournament-acquired customers remain active six to twelve months after a major sporting event? You can compare to 2022.
I don't have the exact numbers by heart, but generally the rule of thumb is these players don't last as long as organically acquired customers; many return for the next major tournament or event. They are not strictly one-timers, but their longevity is lower on average. If you send an email, I will check and reply with more precise figures compared to 2022. In general, lower CPA cohorts tend to have lower lifetime value, so if we buy them cheaply, they return less on average. That's how we think about the cohort dynamics.
Great. And then Mexico is one of your largest growth opportunities. You characterized the competitive environment as favorable and mentioned two major competitors not active. Could you add color about why promotional intensity didn't seem as high during the World Cup and changes in promotional intensity across the market following the World Cup?
The competitive environment in Mexico is mixed. Some large operators stepped back while others entered, so it's not a closed arena. New entrants increase overall market attention, and because we've invested heavily in TV and brand over time, that often benefits us. Promotional activity can be intense—some give large free-money offers of $100 to $150 to let customers test their product. We have strong retention programs and promotional schemes for core and VIP customers, so we're confident in our approach. That said, the market is crowded and heavy spenders are active, so we must continue investing both in top-of-mind brand activity and targeted promotions to maintain and grow share.
Final question: you have about EUR 63 million in cash and no financial debt. How are you thinking about capital allocation and options to improve shareholder value?
Things have changed significantly over the last two years where we moved from low cash to significant cash flow generation. This gives us strategic flexibility. We're evaluating strategic options, particularly in Latin America, including opportunities to obtain specific licenses as various markets regulate online gaming. We're staying close to those situations. The share repurchase program remains authorized but we haven't repurchased shares this year; we did a small amount late last year. That remains an option, but we are prioritizing strategic M&A and market entry opportunities. Broadly speaking, over the next year we expect to allocate more capital to M&A and market-entry opportunities than to buybacks, but we'll continue to manage these in parallel.
I would add that while the cash balance provides strategic ability to take bigger moves, the amount is not enormous relative to certain opportunities. We are constantly looking and have items in the pipeline. It will likely take another quarter or two to decide exactly how to allocate the cash, but the Board and management are actively evaluating options.
(Operator provided instructions.) The next question comes from the line of Arthur Roulac with Three Court, LP.
My first question is on full-year marketing spend. I believe on the first quarter call, you said marketing for the full year would be roughly in line with 2025. Is that still the case?
I think it will be a few percentage points up versus 2025. We see good returns in Spain and are allocating more budget there, so the marketing budget in nominal euros will be a bit higher, but as a percentage of NGR it should remain in the same ballpark and likely trend lower if NGR continues to grow. In nominal euro terms, we are looking at a similar amount to last year, impacted by FX—particularly the strong peso translating into more euros of local currency marketing spend.
Maybe to add: given the good NGR performance, in euro amounts marketing may come up slightly for the full year, but as a percentage of NGR we expect to remain around the same ballpark or slightly lower, and FX effects, such as the strong Mexican peso, also increase euro-denominated marketing spend.
Just to clarify: last year you spent about EUR 86.4 million. Does that mean for the full year you'll be EUR 2 million to EUR 4 million higher? Is that the ballpark?
Yes, perhaps a little bit higher in euro terms depending on opportunities that arise during the year and FX. The strength of the peso adds to the overall euro amount, so that could be a reasonable starting assumption, but day-to-day decisions will determine the final number.
Strategically, if we have excess EBITDA, we are willing to reinvest it into marketing where returns are attractive. Most of this goes into digital and performance marketing. So while we may nominally spend more than last year in euros, these are not large increases and are targeted to generate growth.
In 2024 you spent about EUR 90 million. Are we looking at a similar 2024-level spend this year—something in that range?
Probably yes. In a ballpark figure, we're aiming to stay between EUR 90 million and slightly under EUR 100 million, but I don't want to commit to an exact number right now.
Yes, roughly speaking. FX and operational decisions will affect the final amount, but that's a reasonable range.
So you're saying the second half will look very similar to the first half?
Yes, more or less.
From an owner perspective, many peers are at 15% to 25% marketing as a percentage of revenue. You're growing faster, but where should we think the normal, more stable state of marketing would be for your business in the next few years, assuming healthy but not 27% growth?
It's a very relevant question. We won't communicate a specific target number, but the clear trajectory is to progressively decrease marketing as a percentage of NGR over time. That process depends on market activity and opportunities we see. We will continue to reduce relative marketing while maintaining growth, and we also expect some additional operating leverage in other expenses. The pace will depend on market dynamics.
Is there any reason to think the business wouldn't migrate to the 15% to 25% range in the next few years?
You are correct that migrating toward that range is reasonable. I don't believe the business will be at the very low end of that range in regulated markets, but we should get toward levels around the mid-20s. Certain markets are already at those levels—Spain, for example—whereas Mexico is still a growth market where we expect to spend more to hold and grow position. Overall, a healthy long-term level we see is around 22% to 28%, plus or minus five percentage points, depending on the strategic balance between EBITDA generation and growth that shareholders prefer.
To add, the company operates with two sides: in some markets like Spain and Panama we are nearer what might be considered 'stable' marketing levels, while Mexico is the primary pressure point where more marketing is warranted for growth. So the overall company percentage depends largely on how we manage marketing in Mexico going forward.
That's helpful. On Spain specifically, in a mature regulated market you generated almost 25% growth. How have you been so successful there?
A few factors. First, the market itself is growing double digits, which benefits us. Second, we've improved platform stability and applied technology and AI enhancements, which allowed us to execute more effectively and retain players. This is the result of long-term investment in the brand and platform. We're also selectively reinvesting excess EBITDA into marketing in Spain, which has delivered attractive returns. There are regulatory developments ahead concerning VIP and deposit limits that could have some impact, but we believe we can manage them and continue growing.
Regarding the balance sheet: you have a buyback program but haven't repurchased shares this year. Given your cash position and valuation, is there thought to increase buybacks or are you more focused on licenses and M&A in markets like Argentina or Uruguay?
We are evaluating a range of alternatives. In Latin America, several countries are creating regulatory frameworks, and we see attractive opportunities to enter markets through licenses or acquisitions. Some routes require limited upfront cash but need investment to establish the business, while other opportunities are outright acquisitions. The buyback program remains in effect but we have not been active so far this year. Broadly speaking, over the next year we expect to allocate more to M&A and market entry than to buybacks, but we will manage both in parallel.
All those options are on the table and discussed at board level. We hope some opportunities will materialize and allow us to deploy cash. On the share price, liquidity is a challenge versus bigger peers, and that affects valuation. The buyback program can help, but liquidity improvements are key. We believe the company is performing well and hope that will be reflected in the share price over time.
(Operator provided instructions.) We have reached the end of the Q&A session. I will now turn the call back to Guillermo for closing remarks.
Thank you. Thanks, everyone, for joining. If you have any follow-ups, feel free to reach out. Otherwise, we will be speaking again in mid-November with our Q3 results. Thank you.
Thank you.
Thank you.
This concludes today's call. Thank you for attending. You may now disconnect.