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01/11 16:19
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. While there is growth in key metrics like net gaming revenue and active users, challenges such as regulatory compliance issues, currency exchange risks, and competitive pressures in Spain temper optimism. The share buyback plan is a positive, but its limited execution so far reduces impact. The Q&A reveals management's lack of clarity on certain issues, which may raise investor concerns. Overall, the mixed signals and uncertainty result in a neutral stock price prediction.
Net Gaming Revenue €57 million, 8% increase year-over-year; driven by a 15% increase in Mexican revenue and a 21% increase in first-time depositors.
Adjusted EBITDA €1.8 million, in line with Q1 2024; despite a €4 million increase in net gaming revenue, impacted by higher marketing investments.
Cash on Balance Sheet €42 million total cash, €37 million available; reflects a normalized level of working capital despite negative €18 million net working capital position.
Available Cash Flow €2.2 million generated in Q1 2025; partially offset by €0.9 million negative FX impact due to currency devaluation.
Average Monthly Active Users 82,000, 31% increase year-over-year; driven by customer acquisition efforts in Mexico.
Average Monthly Spend per Active Customer €118, 5% decrease year-over-year; reflects lower player values.
First Time Depositors (FTDs) 91,000, 21% increase year-over-year; driven by new customer acquisition channels.
Net Gaming Revenue: €57 million in Q1 2025, 8% above Q1 2024; €62 million in constant currency, 17% above prior-year period.
Customer Acquisition: 91,000 first-time depositors in Q1 2025, 21% above prior-year period.
Active Customers: Average monthly active users increased by 13%.
Spanish Market Performance: Net gaming revenue in Spain was flat at €22 million.
Mexican Market Performance: Net gaming revenue in Mexico was €30.5 million, 15% above prior-year period.
Adjusted EBITDA: Positive €1.8 million in Q1 2025, marking fifth consecutive quarter of positive adjusted EBITDA.
Share Buyback Plan: One-year share buyback plan for up to $5 million; approximately $0.5 million spent on repurchasing 68,000 shares.
Compliance with Nasdaq: Filed 2023 annual report on Form 20-F on May 1, regaining compliance with Nasdaq listing requirements.
Future Outlook: Expect to generate net gaming revenue between €220 million and €230 million and adjusted EBITDA between €10 million and €15 million for 2025.
Regulatory Compliance Risks: The company is currently facing a compliance issue with Nasdaq due to delays in filing their 2024 annual report, which may lead to a new delisting notice. They plan to appeal this notice and request a hearing.
Currency Exchange Risks: The devaluation of the Mexican peso has negatively impacted net gaming revenue, with a reported €5 million headwind in Q1 2025. The company anticipates continued exchange rate challenges, although they expect the impact to lessen after Q2.
Competitive Pressures in Spain: The company is adapting its promotional activities in Spain due to a challenging competitive landscape, which has affected customer acquisition and spending.
Supply Chain Challenges: The company reported a negative working capital position of €18 million, reflecting more restrictive trade terms with suppliers, which may impact operational flexibility.
Economic Factors: The company noted that trade tensions and uncertainties have contributed to currency volatility, which could affect future financial performance.
Share Buyback Plan: A one-year share buyback plan for up to $5 million was approved by shareholders on March 3, with approximately $0.5 million spent to repurchase around 68,000 shares by May 15.
Customer Acquisition Strategy: The company reported a strong quarter with 91,000 first-time depositors, a 21% increase year-on-year, indicating effective customer acquisition strategies.
Focus on Mexican Market: Codere Online continues to explore and optimize customer traffic sources in Mexico, which remains a compelling growth opportunity despite currency headwinds.
Net Gaming Revenue Guidance: The company expects to generate net gaming revenue between €220 million and €230 million for the full year 2025.
Adjusted EBITDA Guidance: Adjusted EBITDA is projected to be in the range of €10 million to €15 million for 2025.
Q2 2025 Outlook: The company anticipates a difficult comparison for Q2 results due to exchange rate headwinds but expects less impact thereafter.
Share Buyback Plan: A one-year share buyback plan for up to $5 million was approved by shareholders on March 3. As of May 15, approximately $0.5 million has been used to repurchase around 68,000 shares under this plan.
The earnings call indicates mixed signals: stable NGR with currency impacts, a challenging Spanish market, and positive EBITDA. The Q&A highlights regulatory challenges and cautious optimism in Mexico. The share buyback and potential profitability improvements are positive, but concerns about Colombia's VAT impact and unclear guidance on its viability add uncertainty. Overall, the sentiment is balanced, leading to a neutral stock price expectation.
The earnings call presents a mixed outlook. While there is growth in key metrics like net gaming revenue and active users, challenges such as regulatory compliance issues, currency exchange risks, and competitive pressures in Spain temper optimism. The share buyback plan is a positive, but its limited execution so far reduces impact. The Q&A reveals management's lack of clarity on certain issues, which may raise investor concerns. Overall, the mixed signals and uncertainty result in a neutral stock price prediction.
The earnings call presents a mixed picture: strong net gaming revenue growth and improved EBITDA are positives, but the negative working capital and currency headwinds pose risks. The lack of a share buyback program and the cautious approach to hedging currency risk add uncertainty. The Q&A section reveals competitive pressures and management's non-specific answers on key issues, tempering optimism. Overall, the stock price is likely to remain stable, with no significant catalysts to drive a major move in either direction.
The earnings call presents a mixed picture with strong revenue growth but concerns over negative cash flow and working capital. The Q&A section highlights management's lack of clarity on margin expansion and regulatory impacts, indicating potential risks. Despite increased revenue guidance and cash position, these concerns, coupled with high CPA and negative working capital, suggest a negative sentiment, likely leading to a stock price decline.
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