Codere Online's Q2 2025: Navigating Contradictions in Mexico and Spain's Market Strategies

Mexico's growth strategy and customer acquisition costs, Colombia's VAT impact and market viability, Mexico's economic and market conditions, Spanish competitive landscape and market dynamics, impact of competitive environment on Spain are the key contradictions discussed in Codere Online Luxembourg's latest 2025Q2 earnings call.



Revenue Stability in the Face of Currency Fluctuations:
- Codere Online reported NET GAMING REVENUE of EUR 55 million for Q2 2025, which was flat year-over-year, and in constant currency terms, it would have been EUR 61 million.
- The stability was achieved despite a 19% devaluation in the Mexican peso, which had a EUR 5.7 million negative impact on revenue.
- The company managed to offset this impact through a 7% increase in active customers and effective cost management strategies.

Focus on Mexican Market Expansion:
- Mexico remained a priority market for Codere Online, with a 36% increase in active customers year-over-year, contributing to a 3% rise in net gaming revenue to EUR 29 million.
- This growth was driven by strategic marketing investments and successful user acquisition strategies, despite the peso devaluation.
- The company expects the growth in Mexico to continue leading up to and throughout the 2026 World Cup.

Challenges and Adaptations in Spain:
- Spanish market net gaming revenue remained flat at EUR 22 million, and customer numbers declined by 3%.
- Competition and regulatory challenges, including the reintroduction of welcome bonuses, led to a more competitive landscape, impacting the business.
- Despite these challenges, the company refrained from offering excessive promotions, focusing on maintaining profitability and stability in the market.

Cash Flow and Share Repurchase Strategy:
- Codere Online generated EUR 7.5 million in available cash in the first half of 2025, despite a negative FX impact.
- The company repurchased around 106,000 shares under its share buyback plan, investing approximately EUR 700,000.
- Share repurchases are part of the company's strategy to capitalize on attractive pricing opportunities and align with long-term shareholder interests.