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01/11 16:17
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Net Gaming Revenue (NGR) EUR 55 million, roughly flat year-over-year due to the devaluation of the Mexican peso. On a constant currency basis, NGR would have been EUR 61 million, reflecting a 12% increase year-over-year.
Casino Segment Contribution 61% of total NGR, showing stabilization at around 60% casino mix.
Average Monthly Active Customers Increased by 7% year-over-year, contributing to NGR growth.
Average Monthly Spend per Active Customer Decreased by 5% year-over-year, primarily due to the weaker Mexican peso.
First-Time Depositors (FTDs) 78,000, a 7% increase year-over-year, with an average CPA of EUR 218.
Adjusted EBITDA Positive EUR 2.3 million, including a EUR 6.3 million contribution from Spain (5% increase year-over-year). Mexico's contribution was slightly negative due to increased marketing investments.
Net Gaming Revenue in Colombia EUR 1.6 million lower year-over-year due to the introduction of a value-added tax on player deposits.
Net Gaming Revenue in Panama EUR 0.8 million higher year-over-year, doubling from the prior year due to product improvements.
Net Gaming Revenue in Mexico EUR 29 million, a 3% increase year-over-year. On a constant currency basis, NGR would have grown 23%.
Net Gaming Revenue in Spain EUR 22 million, flat year-over-year, with slightly higher spend per active customer offset by a 3% decline in active customers.
Total Cash on Balance Sheet EUR 45 million as of June 30, 2025, with EUR 41 million available.
Cash Flow Generation EUR 7.5 million of available cash generated in H1 2025, offset by a EUR 2.1 million negative FX impact, resulting in EUR 5 million total cash flow generation.
Casino segment contribution: Casino segment contributed 61% of total net gaming revenue in Q2 2025, reflecting stabilization at around 60%.
Mexico market growth: Net gaming revenue in Mexico grew 3% to EUR 29 million despite a 19% devaluation of the Mexican peso. On a constant currency basis, growth would have been 23%. Average monthly active customers increased by 36% to 85,000.
Panama market growth: Net gaming revenue in Panama doubled compared to the prior year period, reflecting product improvements.
Net gaming revenue: Net gaming revenue was EUR 55 million, flat versus prior year due to currency devaluation. On a constant currency basis, it would have been EUR 61 million, a 12% increase.
Adjusted EBITDA: Adjusted EBITDA was EUR 2.3 million, including a EUR 6.3 million contribution from Spain, 5% above prior year.
Marketing investment: Marketing spend in the second half of 2025 is expected to be lower than the first half, with a focus on Mexico.
Share buyback plan: Repurchased 106,000 shares for EUR 700,000 under the share buyback plan.
Devaluation of the Mexican Peso: The Mexican peso devalued significantly, leading to a EUR 5.7 million negative impact on net gaming revenue in Q2 2025. This currency fluctuation has been a major headwind since the federal elections in June 2024 and continues to affect financial performance.
Introduction of Value-Added Tax in Colombia: A new value-added tax on player deposits in Colombia has negatively impacted net gaming revenue in the region, reducing it by EUR 1.6 million in Q2 2025.
Competitive Landscape in Spain: The reintroduction of welcome bonuses in Spain has intensified competition, leading to lower spending levels from both new and existing customers. This has created a more challenging market environment.
Marketing Investments in Mexico: Increased marketing investments in Mexico, particularly around the Club World Cup sponsorship, have led to slightly negative EBITDA in the region, despite strong customer acquisition.
Currency Exchange Rate Risks: The devaluation of both the Mexican peso and the U.S. dollar has resulted in a EUR 2.1 million negative FX impact on cash balances, affecting overall cash flow generation.
Selective Promotional Activity in Spain: A 3% decline in active customers in Spain was noted due to more selective promotional activities, reflecting challenges in maintaining customer engagement in a competitive market.
Net Gaming Revenue Outlook: The company expects net gaming revenue for 2025 to be between EUR 220 million and EUR 230 million.
Adjusted EBITDA Outlook: Adjusted EBITDA is projected to range between EUR 10 million and EUR 15 million for 2025.
Marketing Spend: Marketing spend in the second half of 2025 is expected to be lower than in the first half, contributing to higher EBITDA generation in the latter half of the year.
Mexican Market Growth: The company anticipates strong returns from both existing and new players in Mexico, supported by a better-than-expected evolution of the Mexican peso towards year-end. Mexico remains a priority market, with expectations of significant growth leading up to and during the 2026 World Cup.
Currency Impact: The exchange rate headwind from the Mexican peso is expected to persist into Q3 2025 but will be less significant compared to prior quarters.
Share Buyback Plan: Through July 30, 2025, the company repurchased approximately 106,000 shares under the share buyback plan, with a total investment of around EUR 700,000.
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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