Codere Online Luxembourg, S.A. Q2 2026 Earnings Call Summary – Moby Strategic Performance Drivers
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.
-
Record quarterly revenue was driven by accelerated growth in Spain and Mexico, alongside a recovery in Colombia following the removal of a 19% VAT on customer deposits.
-
The World Cup served as a major acquisition catalyst, with stakes reaching approximately EUR 63 million, representing a 180% increase over the 2022 tournament.
-
In Mexico, revenue growth was driven primarily by higher spend per active customer as management intentionally cleaned the database to reduce promotional abuse and improve player quality.
-
Spain’s outperformance was attributed to structural market growth and successful market share recovery, supported by enhanced platform stability and AI-driven retention tools.
-
Marketing efficiency improved as the company leveraged its strong brand to acquire customers organically during the World Cup, avoiding high-cost broadcast advertising.
-
Profitability gains reflect inherent operating leverage, with marketing expenses decreasing as a percentage of net gaming revenue despite higher absolute spending.
Strategic Outlook and Guidance Assumptions
-
Full-year 2026 revenue guidance was raised to EUR 255-265 million, assuming continued momentum in Spain and a favorable competitive environment in Mexico.
-
Adjusted EBITDA guidance was increased to EUR 20-25 million, reflecting strong cash conversion expectations and disciplined marketing spend.
-
Management expects to gradually migrate marketing spend toward a stable-state range of 22% to 28% of revenue over the next few years.
-
Future growth in Colombia remains contingent on further tax regulatory changes; management is maintaining a ‘wait-and-see’ approach before re-accelerating marketing investment there.
-
The company is evaluating strategic M&A and licensing opportunities in Latin America, specifically targeting newly regulating markets like Uruguay and Chile.
Operational Risks and Structural Factors
-
The Mexican Peso’s strength contributed over EUR 4 million to the first half results, though it also increased the Euro-denominated cost of local marketing.
-
New regulatory hurdles in Spain, including joint deposit limits and VIP restrictions, are expected to be manageable but remain a factor for future periods.
-
The competitive landscape in Mexico remains ‘harsh’ with heavy-spending new entrants, requiring Codere to maintain high promotional activity for core and VIP segments.
-
Management acknowledged that low liquidity in the company’s shares continues to impact valuation relative to larger industry peers.
Story Continues