Codere Online Luxembourg, S.A. (CDRO) Q2 2024 Earnings Call Transcript
AInvestSunday, Aug 4, 2024 2:18 pm ET
2min read
CDRO --

In the latest earnings call for Codere Online, the company highlighted a strong set of financial results for the second quarter of 2024, indicating a robust performance across its casino and sports betting segments. The call, led by CEO Aviv Sher and CFO Oscar Iglesias, provided insights into the company's strategic initiatives, financial performance, and outlook for the remainder of the year.

Financial Highlights and Strategic Initiatives

Codere Online reported a significant increase in net gaming revenue for the second quarter of 2024, with a 13% year-on-year growth to €54 million. This increase was attributed to a busy sports calendar, particularly the Eurocup and Copa America, as well as a record-high contribution from the casino segment, which accounted for 59% of total net gaming revenue. This focus on casino customers is a strategic move, as these players tend to have higher and more stable spending patterns, resulting in a better return on investment for the company.

Market Share and Competition

The call also touched on the competitive landscape in the Mexican market, where Codere Online is seeing increased competition from both local and international players. The company plans to defend its market share by increasing its marketing budget to target high-value casino players, and is exploring opportunities for expansion into other markets, such as Argentina. Despite the challenges, Codere Online remains optimistic about its prospects, with a focus on sustainable and profitable growth.

Financial Performance and Outlook

The financial performance of Codere Online was also a key topic of discussion, with the company reporting a positive adjusted EBITDA of €1.3 million for the second quarter of 2024. This improvement was driven by strong revenue growth and strategic cost management. The company also provided a revised outlook for the year, with a forecasted net gaming revenue range of €205 million to €215 million for 2024, representing a 22% increase from the previous year.

Key Takeaways

The earnings call highlighted Codere Online's solid financial performance and strategic focus on growing its casino segment. The company's ability to maintain a strong market position in the face of increased competition is a testament to its strategic initiatives and operational efficiency. With a positive outlook for the remainder of the year and a focus on expansion into new markets, Codere Online is well-positioned for continued growth and success in the online gaming industry.

As investors and analysts digest the information from the earnings call, they will be closely watching Codere Online's performance in the second half of the year, particularly in the context of the competitive landscape and any regulatory changes in key markets. The company's strategic focus on casino customers and its pursuit of expansion opportunities will be key factors to watch as Codere Online continues to navigate the evolving online gaming market.

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