The following is a summary of the Codere Online Luxembourg, S.A. (CDRO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Codere Online reported a consolidated Net Gaming Revenue of €54 million in Q2 2024, a 39% increase year-over-year.
Adjusted EBITDA was positive at €1.3 million, nearly €6 million better than the previous year, reflecting efficient management and strategic marketing investments.
Net income details were not provided explicitly, however, the positive Adjusted EBITDA highlights an overall improvement in profitability.
Business Progress:
The company saw a record high contribution from the casino segment, which accounted for 59% of total net gaming revenue in the quarter, driven by successful cross-selling of betting customers into casino games.
Customer engagement remained strong due to major sports events like the Eurocup and Copa America, despite generally favorable sports outcomes.
There was a strategic increase in the number of active customers by 20% and average spend per customer by 16%, and the company introduced operational changes by adding new board members to enhance corporate governance.
Opportunities:
The strategic focus on 'casino first' customer acquisition in key markets like Spain and Mexico has resulted in higher customer spend and more stable revenue streams.
Continued expansion and solid performance in the Mexican market, which grew by 57% year-over-year, demonstrating the company's strong position to capture further growth.
Risks:
Increased competition in the Mexican market, which is experiencing entry by new international competitors, could pressure market share and operational costs.
Regulatory uncertainties in markets like Mexico, with possible changes on the horizon that could impact operational stances and tax structures.
More details: Codere Online Luxembourg IR
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