Navigating Contradictions: Insights from the 2025 Q1 Earnings Call on Competition, CAC, and Market Strategy

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Financial Performance and Growth:
- Codere Online reported net gaming revenue of €57 million for Q1 2025, an 8% increase year-on-year, with constant currency revenue reaching €62 million, a 17% increase.
- Growth was driven by a 13% increase in average monthly active users, despite a 5% decrease in average monthly spend per active customer.

Regulatory Environment and Market Dynamics:
- In Spain, net gaming revenue was nearly flat at €22 million, impacted by the reintroduction of welcome bonuses and increased competition.
- The company acquired 91,000 new depositors in Q1 2025, a 21% increase year-on-year, reflecting a moderation in customer acquisition costs.

Impact of Currency Fluctuations:
- The Mexican peso devalued by more than 16% in Q1 2025, resulting in a €5 million headwind to net gaming revenue in Mexico.
- Despite this, on a constant currency basis, Mexican revenue grew by 34%, indicating strong underlying market growth.

Investment Strategy and Market Expansion:
- The company plans to continue focusing on the Mexican market and expects to increase investments there to capitalize on future opportunities.
- They are staying defensive regarding new market investments, with their focus remaining on maintaining market share in core regions and leveraging parent company activities as needed.