Codere Online Luxembourg, S.A. Q1 2026 Earnings Call Summary – Moby Strategic Performance and Operational Context
Performance was driven by a 13% year-over-year increase in net gaming revenue, fueled by top-line reacceleration in core markets and a 14% expansion of the active customer base.
Casino remains the primary engagement driver, accounting for 63% of total revenue, while sports betting contributed the remaining 37%.
Management attributed the increase in Cost Per Acquisition (CPA) to a more competitive marketing environment and a deliberate strategic shift toward higher-value customer cohorts and channels.
In Mexico, the company is intentionally reducing the participation of ‘bonus hunters’ through tighter promotional rules to improve the long-term sustainability and quality of the database.
Spain’s growth of 16% was supported by favorable trading margins and technological stability during high-volume sporting events.
Profitability improved significantly with adjusted EBITDA reaching EUR 6 million, driven by operating leverage as undistributed and headquarter costs remained disciplined relative to revenue growth.
Outlook and Strategic Assumptions
Management maintained full-year 2026 guidance but indicated they would likely revisit and potentially raise the outlook after the first half of the year if current execution trends persist.
The company expects an uplift in activity from the upcoming World Cup in Q2 and Q3, though management anticipates a limited impact on net gaming revenue based on historical patterns.
Strategic focus remains on pursuing efficient, high-impact marketing opportunities, such as opportunistic content partnerships, rather than competing for expensive World Cup-related media.
Guidance assumes continued tailwinds from the Mexican exchange rate and a more favorable gaming tax structure in Colombia.
Management intends to balance discretionary marketing spend against EBITDA targets to maximize company value rather than pursuing volume at the expense of margins.
Market Dynamics and Risk Factors
The Colombian market remains in a reactive mode; while the removal of the 19% VAT is positive, the new 16% consumption tax currently limits aggressive new marketing investment, with management awaiting the results of upcoming elections at the end of the month to determine if the environment will become favorable for future investment.
Regulatory maturity in Spain continues to present a tightly controlled advertising environment, though the company is successfully growing its portfolio within these constraints.
The company maintains a structural negative working capital position of approximately EUR 22 million, which supports ongoing cash generation.
A share buyback program remains in place through 2026, though no repurchases were executed in Q1 as the company evaluates market conditions.
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