Q4 2025 Codere Online Luxembourg SA Earnings Call

February 26, 2026

Speaker #1: After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press start 9 to raise your hand, and start 6 to unmute.

Speaker #1: I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications at Codere. Please go ahead.

Speaker #2: Thanks, Operator, and welcome, everyone, to Codere Online's earnings call for the fourth quarter of 2025. Today you will hear from our CEO, Aviv Sher, and CFO, Marcus Arildsson, our Executive Vice Chairman, Moshe Edre, will also join us in the Q&A session.

Speaker #2: Please note that the figures reflected in today's presentations are preliminary and unaudited, and include certain non-IFRS financial metrics, which should be considered in addition to our IFRS results.

Speaker #2: Reconciliations and further details are available in the appendix. During this call, we will make forward-looking statements which are subject to risks and uncertainties. While these statements reflect our current expectations, we undertake no obligation to update them after this call.

Speaker #2: A replay and transcript will be available at codereonline.com, where investors can also sign up for email alerts. With that, I will go ahead and pass the call on to Aviv.

Speaker #3: Thanks, Guillermo, and thanks to everyone for joining us today. Before we go into details, I would like to say that we are very pleased with how we finished 2025, especially considering the number of challenges we faced during the year.

Speaker #3: We delivered a strong set of results with a record net gaming revenue of $224 million and adjusted EBITDA of $13.8 million more than double than prior year.

Speaker #3: And we once again met the guidance range we had provided for the year. This gives us a lot of confidence in the strength of our business and our ability to continue growing profitability in 2026 and beyond.

Speaker #3: Starting with the highlights of the fourth quarter of 2025 on page 8, we delivered $60 million in net gaming revenue, which represents a 15% increase versus the fourth quarter of 2024 and the highest quarterly NGR in the company's history.

Speaker #3: This strong finish to the year was driven primarily by Mexico, where net gaming revenue grew 31% year on year, and by continued growth in Spain, where NGR increased by 7%.

Speaker #3: Confirming that the real acceleration in top-line that we started to see in the second half of the year continued through year-end. In terms of product mix, casino, accounted for 64% of our total net gaming revenue in the quarter, with remaining 36% coming from sport betting.

Speaker #3: Broadly in line with what we have seen over the last few quarters. We continued to see casino a very important growth and engagement driver for the business, especially in markets like Mexico.

Speaker #3: From an operating KPI standpoint, the performance in the quarter was mainly driven by continued growth in our active customer base. We reached around $177,000 average monthly actives in Q4, which is 20% above the same period last year.

Speaker #3: Reflecting both the strength of our acquisition funnel and improvement in retention. Average monthly spend per active was $114. Approximately 4% below Q4 of last year, which is consistent with the larger and more diversified portfolio of customers, including a higher proportion of Mexican players.

Speaker #3: On the acquisition front, we continue to invest in a growing customer base. During the quarter, we acquired 89,000 first-time depositors at an average CPA of $166, the lowest level since early 2023.

Speaker #3: And which remain an attractive level giving the quality of the customers we are bringing onto the platform. We will continue to optimize the mix of the channels and campaigns, particularly in Mexico.

Speaker #3: But always with a clear focus on profitability and payback rather than absolute volume. In relation to our share buyback plan, we have continued to execute on the program we announced last year.

Speaker #3: Through yesterday, we had purchased approximately 391,000 shares of a total consideration of around $2.7 million under the plan, which has a total authorized investment of $7.5 million and runs through December 31st of 2026.

Speaker #3: We see this as a very attractive use of capital at the current share price levels and a clear reflection of the board and management confidence in the medium-term outlook for the business.

Speaker #3: Looking ahead, as Marcus will detail later for 2026, we are guiding net gaming revenue in the range of $235 million to $245 million. And adjusted EBITDA between 15 to 20 million euros.

Speaker #3: This guidance incorporates the management initiatives we are planning for 2026, as well as the impact of recent regulatory and tax changes in our markets and we think it reflects confidence that we can continue and grow both the top-line and profitability going forward.

Speaker #3: With this, I will now turn the call over to Marcus for the first time, I think. Good luck, Marcus, and cover the financial highlights for the quarter.

We had purchased approximately 391,000 shares of a total consideration of around 2.7 million dollars under the plan, which has a total authorized investment of 7.5 million and runs through December 31st of 2026. We see this as a very attractive use of capital as the current share price levels and a clear reflection of the board and management confidence in the medium-term outlook for the business.

We had purchased approximately 391,000 shares of a total consideration of around 2.7 million dollars under the plan, which has a total authorized investment of 7.5 million and runs through December 31st of 2026. We see this as a very attractive use of capital as the current share price levels and the clear reflection of the board and management confidence in the medium-term outlook for the business.

Speaker #4: Thanks, Aviv, and hello, everyone. If we now move to slide 10, you can see our consolidated net gaming revenue and adjusted EBITDA by country.

Speaker #4: So in the fourth quarter, NGR revenue increased by 15% year on year. From 52.6 million to 60.7. This growth was driven primarily by our two core markets, Mexico net gaming revenue grew by 31% to 32.8 million.

We had purchased approximately 391,000 shares of a total consideration of around 2.7 million dollars under the plan, which has a total authorized investment of 7.5 million and runs through December 31st of 2026. We see this as a very attractive use of capital as the current share price levels and the clear reflection of the board and management confidence in the medium-term outlook for the business.

Looking ahead as M Marcus will detail later in for 2026. We are guiding net Gaming revenue in the range, of 235 million, to 245 million and adjusted Abida between 15 to 20 million euros. This guidance, incorporates the management initiatives we are planning for 2026 as well as the impact of recent Regulatory and tax changes in our

Speaker #4: And Spain, where it increased 7% to 24.5 million. In our other markets, Colombia, Panama, and the city of Buenos Aires, these markets contributed 3.5 million in the quarter, 25% less than in the prior year quarter, as a result of a decline in the Colombian revenue on the back of the 19% tax on deposits that have been in effect for most part of 2025.

Markets. And we think it reflects confidence that we can continue and grow both the top line and profitability going forward.

Looking ahead as M Marcus will detail later in for 2026. We are guiding net Gaming revenue in the range of 235 million, to 245 million and adjusted Abida between 15 to 20 million years old. This guidance in cooperate, the management initiatives, we are planning for 2026 as well as the impact of recent Regulatory and tax changes in our markets. And we think it reflects confidence that we can continue and grow both the top line and profitability going forward.

With this.

I will now turn the call over to Marcus for the first time. I think good luck, Marcus and cover the financial highlights for the quarter.

I will now turn the call over to Marcus for the first time. I think—good luck, Marcus—and cover the financial highlights for the quarter.

Looking ahead as M Marcus will detail later in for 2026. We are guiding net Gaming revenue in the range of 235 million, to 245 million and adjusted Abida between 15 to 20 million euros. These guidance incorporates the management initiatives we are planning for 2026, as well as the impact of recent Regulatory and tax changes in our markets. And we think it reflects confidence that we can continue and grow both the top line and profitability going forward.

Looking ahead as M Marcus will detail later in for 2026. We are guiding net Gaming revenue in the range of 235 million, to 245 million, and adjusted Abida between 15 to 20 million euros. This guidance, incorporates the management initiatives we are planning for 2026, as well as the impact of recent Regulatory and tax changes in our markets. And we think it reflects confidence that we can continue and grow both the top line and profitability going forward.

With this.

Speaker #4: But expired towards the end of the year. This top-line performance is translating into profitability and reflects operating leverage in our business model as we scale and as well as continue improvements in marketing efficiency and certain cost discipline.

I will now turn the call over to Marcus for the first time. I think good luck, Marcus and cover the financial highlights for the quarter.

I will now turn the call over to Marcus for the first time. I think, good luck Marcus, and cover the financial highlights for the quarter.

Thanks Ian. Hello everyone. Uh, if we now move to slide 10, you can see our Consolidated, net Gaming revenue and adjust the dbj by country. Uh, so in the fourth quarter uh ngr Revenue increase by 15% year on Year from 52.6 million to 60.7.

Thanks Evan. Hello everyone. Uh, if we now move to slide 10, you can see our Consolidated, net Gaming revenue, and adjusted DBA by country. Uh so in the fourth quarter uh ngr Revenue increase by 15% year on Year from 52.6 million to 60.7.

And this growth was driven primarily by 2 core markets Mexico, net Gaming revenue, grew by 31% to 32.8 million.

Speaker #4: In the fourth quarter, we delivered positive adjusted EBITDA of 6.7 million euros. Which was 4.8 million above Q4 of 2024. And included 7.1 million of contribution from Spain and 4 million contribution from Mexico.

Thanks have a good. Hello everyone. Uh, if we now move to slide 10, you can see our Consolidated, net Gaming revenue and adjusted ebj by country.

In Spain, where it increased 7% to 24.5 million.

And Spain, where it increased 7% to 24.5 million.

Uh so in the fourth quarter uh ngr Revenue increase by 15% year on Year from 52.6 million to 60.7.

Thanks, so even hello everyone. Uh, if we now move to slide 10, you can see our Consolidated, net Gaming revenue and adjusted ebta by country. Uh, so in the fourth quarter, uh, ndr Revenue increased by 15% year on Year from 52.6 million to 60.7

Speaker #4: Which has now clearly inflected towards profitability. For the full year 2025, adjusted EBITDA reached 13.8 million euros, more than double the 6.4 million we reported in 2024.

And this growth was driven primarily by our 2 core markets Mexico, net Gaming revenue, grew by 31% to 32.8 million.

And Spain where it increased 7% to 24.5 million.

In Spain, where it increased 7% to 24.5 million.

In our other markets, Colombia Panama and city of Bernice Iris. This Market is contributed 3.5 million in the quarter. 25% less than in the prior year quarter, as a result of the decline, in the Colombian revenue, on the back of the 19% tax on deposits that have been in effect for most part of 2025, but expired, towards the end of the year.

Speaker #4: And in line with the upper end of the guidance, we provided a year ago. If we move to page 11 to have a look at our consolidated P&L.

This Top Line performance is translating into profitability and reflects operating leverage in our business model as we scale and as well as as well as continuing improvements in marketing efficiency and certain cost discipline.

Speaker #4: There you can see marketing expense was 21.4 million, slightly below last year in absolute terms. And significantly lower as the percentage of NGR, reflecting improved efficiency in our marketing spend.

In our other markets, Colombia Panama and city of Bernese. Cyrus. Uh these markets contributed 3.5 million in the quarter. 25% less than in the prior year quarter, as a result of the decline, in the Colombian revenue, on the back of the 19% tax on deposits that have been in effect for most part of 2025, but expired, towards the end of the year. This Top Line performance is translating into profitability and reflects operating leverage in our business model as we scale and as well as as well as continuing improvements in marketing efficiency and certain cost discipline.

In the fourth quarter, we delivered positive adjusted ebta of 6.7 million euros.

Which was 4.8 million above Q4 of 2024 and included 7.1 million.

Speaker #4: The rest of our operating expenses namely platform and content costs, gaming taxes and personnel, were essentially in line with the growth in NGR. Altogether, this cost structure resulted in an adjusted EBITDA of 6.7 million in the fourth quarter, implying a EBITDA margin of around 11% compared to less than 4% in Q4 2024.

In our other markets, Colombia Panama and city of Bernese. Iris. These markets contributed 3.5 million in the quarter. 25% less than in the prior year quarter, as a result of the decline, in the Colombian revenue, on the back of the 19% tax on deposits that have been in effect for most part of 2025, but expired, towards the end of the year. This Top Line performance is translating into profitability and reflects operating leverage in our business model as we scale and as well as as well as continuing improvements in marketing efficiency and certain cost discipline.

Of contribution from Spain and 4 million contribution for Mexico, which is now clearly inflected towards profitability.

In the fourth quarter, we delivered positive adjusted ebta of 6.7 million euros.

In the fourth quarter, we delivered positive adjust the dbta of 6.7 million euros.

For the full year 2025 adjusted ebta reached 13.8 million euros. More than doubled, the 6.4 million.

Which was 4.8 million above Q4 of 2024 and included 7.1 million.

We reported in 2024 and in line, with the upper end of the guidance, we provided a year ago.

if we move to page 11 to have a look at our consolidated pnl,

Speaker #4: Looking now at our consolidated figures on page 12, you can see the key operating metrics that underpin these results. The 15% growth in net gaming revenue in Q4 was driven by higher average monthly active players, which reached approximately 177,000 players.

Of contribution from Spain and 4 million contribution for Mexico, which is now clearly inflected towards profitability.

Expense was 21.4 Million slightly below last year in absolute terms.

There, you can see marketing expense was $21.4 million, slightly below last year in absolute terms.

For the full year 2025 adjusted ebta reached 13.8 million euros. More than doubled, the 6.4 million.

and significantly lower as a percentage of ngr reflecting improved efficiency in our marketing spend

and significantly lower as a percentage of ngr reflecting in food efficiency in our marketing spend

We reported in 2024 and in line, with the upper end of the guidance, we provided a year ago.

We reported in 2024, and in line with the upper end of the guidance we provided a year ago.

Speaker #4: 20% above those are Q4 2024. The growth in active customers was fueled by higher FTDs, which increased by 89,000 in the quarter. 22% above the prior year period.

if we move to page 11 to have a look at our consolidated pnl,

There, you can see marketing expense was $21.4 million, slightly below last year in absolute terms.

There, you can see marketing expense was 21.4 Million slightly below last year in absolute terms.

And significantly lower as a percentage of ngr reflecting improved efficiency in our marketing span.

Speaker #4: On the bottom right, you can see that customer acquisition efficiency remains at attractive levels with a consolidated CPA of around 166 euros, and trending downwards in the quarter.

The rest of our operating expenses. Uh namely platform and content costs gaming, taxes and Personnel were essentially in line with the growth in ngr altogether. This cost structure resulted in an adjusted ebta of 6.7 million. In the fourth quarter, implying a ebj margin of around 11% compared to less than 4% in Q4 2024.

The rest of our operating expenses. Uh namely platform and content costs gaming, taxes and Personnel were essentially in line with the growth in ngr altogether. This cost structure resulted in in an adjusted ebta of 6.7 million in the fourth quarter, implying a ebj margin of around 11% compared to less than 4% in Q4 2024.

looking now at our Consolidated figures on page 12,

Looking out our Consolidated figures on page 12.

Speaker #4: Taken together, these KPIs confirm that we're bringing more customers onto the platform at good unit economics and keeping them engaged over time. Turning to Spain on page 13, net gaming revenue in the fourth quarter was 24.5 million, up 7% versus Q4 2024.

You can see the key operating metrics that underpin. These results. The 50% growth in net Gaming revenue in Q4 was driven by higher average monthly active players which reached approximately 177,000 players.

The rest of our operating expenses. Uh namely platform and content costs gaming, taxes and Personnel where essentially in line with the growth in ngr altogether. This cost structure resulted in in an adjusted ebta of 6.7 million. In the fourth quarter, implying a ebj margin of around 11% compared to less than 4% in Q4 2024.

The rest of our operating expenses. Uh namely platform and content costs gaming, taxes and Personnel were essentially in line with the growth in ngr altogether, this cost structure resulted in in another adjusted ebta of 6.7 million in the fourth quarter, implying a ebj margin of around 11% compared to less than 4% in Q4 2024.

20% above those so Q4 2024.

looking now at our Consolidated figures on page 12,

The growth. Inactive customers was fueled by

Speaker #4: As a result of 14% increase in the number of active customers to 56,000. With Spain being a mature and tightly regulated market, especially in terms of advertising, we're pleased to continue growing our portfolio of customers while maintaining a strong profitability.

Higher STDs, which increase by 89,000 in the quarter 22% above the prior year period.

Higher ftds, which increase by 89,000 in the quarter. 22% of the prior year period.

20% above those so Q4 2024.

Speaker #4: Looking at Mexico on page 14, net gaming revenue increased 31% year on year from 25.1 million to 32.8 million. As opposed to prior quarters, the Mexican peso was roughly flat in the fourth quarter of 2025 compared to the prior year period.

The growth. Inactive customers was fueled by

Which increase by 89,000 in the quarter 22% above the prior year period.

Higher ftds, which increase by 89,000 in the quarter. 22% above the prior year period.

Bring in more customers onto the platform at good unit economics and keeping them engaged over time.

On the bottom, right, you can see that customer acquisition efficiency remains at attractive levels with a Consolidated CPA of around 166 euros, and trending downwards in the quarter taken together. These kpis confirmed that we're bringing more, customers onto the platform at good unit economics and keeping them engaged over time.

Speaker #4: Revenues were primarily driven by very strong growth in active customers, which grew to around 99,000 in the fourth quarter 2025 compared to 69,000 in the same period the previous year.

Turning to Spain on page 13, uh, net Gaming revenue in the fourth, quarter was 24.5 million up 7% versus Q4 2024. As a result of 14% increase in the number of active customers to 56,000.

Speaker #4: In December, we reached 100,000, more than 100,000 active customers in the country for the first time, a very exciting milestone for us as we continue to build a sizable portfolio ahead of the World Cup later on this year.

On the bottom, right, you can see that customer acquisition efficiency remains at attractive levels with a Consolidated CPA of around 166 euros and trending downwards in the quarter taken together. These kpis confirmed that we bring in more customers onto the platform at good unit economics and keeping them engaged over time.

With Spain, being immature, and tightly regulated markets, especially in terms of advertising.

We're pleased to continue growing our portfolio. Our customers while maintaining a strong profitability,

We're pleased to continue growing our portfolio of customers while maintaining a strong profitability.

Speaker #4: As discussed during last year, player values from customers acquired throughout 2025 had been lower than in prior years, but they've also come with a lower upfront CPA.

Turning to Spain on page 13, uh, net Gaming revenue in the fourth, quarter was 24.5 million up 7% versus Q4 2024, as a result of 14 in the number of active customers to 56,000.

Turning to Spain on page 13, uh, net Gaming revenue, and the fourth quarter was 24.5 million up 7% versus Q4 2024. As a result of 14% increase in the number of active customers to 56,000.

Looking at Mexico on page 14. Net Gaming revenue increased 31% year on Year from 25.1 million to 32.8 million

With Spain, being immature, and tightly regulated markets, especially in terms of advertising.

With Spain being immature, and tightly regulated markets, especially in terms of advertising.

Speaker #4: And our performance this quarter reflects that optimization between the existing portfolio and the new acquisitions. All in all, Mexico continues to be the growth engine for Codere Online.

As opposed to Prior quarters, the Mexican peso was roughly flat in the fourth quarter of 2025 compared to the prior year period.

We're pleased to continue growing our portfolio of customers while maintaining a strong profitability.

We're pleased to continue growing our portfolio of customers, while maintaining a strong profitability.

Speaker #4: We're building scale, increasing brand awareness, and improving our product and customer experience in the country. All while remaining focused on profitability. If we turn to the balance sheet on page 15, you can see that we closed this year with 50 million euros of total cash, of which approximately 45 million is available.

Revenues were primarily driven by very strong growth in active customers, which grew to around 1990, in the fourth quarter, uh, 2025 compared to 69,000 in the same period the previous year.

Revenues were primarily driven by very strong growth in active customers, which grew to around, 19,000 in the fourth quarter, uh, 2025 compared to 69000 in the same period the previous year.

Looking at Mexico on page 14. Net Gaming revenue increased 31% year on Year from 25.1 million to 32.8 million

Looking at Mexico on page 14. Net gaming revenue increased 31% year on year from €25.1 million to €32.8 million.

As opposed to Prior.

As opposed to.

In December.

in December, we

Speaker #4: These figures include the impact of 2.4 million in share repurchases that Aviv commented on. In terms of our networking capital position, we ended the year with a negative 22 million or around 10% of a full year net gaming revenue.

Marcus: As discussed during last year, player values from customers acquired throughout 2025 have been lower than in prior years, but they've also come with a lower upfront CPA. Our performance this quarter reflects that optimization between the existing portfolio and the new acquisitions. All in all, Mexico continues to be the growth engine for Codere Online. We're building scale, increasing brand awareness, and improving our product and customer experience in the country, all while remaining focused on profitability. If we turn to the balance sheet on page 15, you can see that we closed this year with EUR 50 million of total cash, of which approximately EUR 45 million is available. These figures include the impact of EUR 2.4 million in share repurchases that Aviv commented on.

Marcus Arildsson: As discussed during last year, player values from customers acquired throughout 2025 have been lower than in prior years, but they've also come with a lower upfront CPA. Our performance this quarter reflects that optimization between the existing portfolio and the new acquisitions. All in all, Mexico continues to be the growth engine for Codere Online. We're building scale, increasing brand awareness, and improving our product and customer experience in the country, all while remaining focused on profitability. If we turn to the balance sheet on page 15, you can see that we closed this year with EUR 50 million of total cash, of which approximately EUR 45 million is available. These figures include the impact of EUR 2.4 million in share repurchases that Aviv commented on.

Speaker #4: Which is in line with prior quarters and our structural negative working capital position. This combination of negative working capital and growing scale supports our cash generation, which we expect will continue to improve and give us the flexibility to keep investing in growth.

I discussed during last year player values from customers acquired throughout 2025 has been lower than in Prior years, but they've also come with a lower upfront CPA.

Speaker #4: And as we have started to do, return capital to shareholders through the share buyback program. Turning to page 16, looking at our cash flow.

And our performance. This quarter reflects that optimization between the existing portfolio and the new acquisitions.

Speaker #4: We generated 13.4 million of cash flow before share repurchases. And the FX impact on cash balances. This shows that the business is now delivering not only positive adjusted EBITDA, but also converting a significant part of it into cash flow.

All in all Mexico continues to be the growth engine for coder online. We're building scale, increasing brand awareness, and improving our product, and customer experience in the country.

All while remaining focused on profitability.

Speaker #4: As a result, our available cash increased by close to 10 million from 35 at the beginning of the year to 45 million at the end of 2025.

Uh, if we turn to the balance sheet on page 15, you can see that we closed this year with 50 million uh Euros or total cache or which approximately 45 million is available.

Marcus: In terms of our net working capital position, we ended the year with a negative EUR 22 million, or around 10% of our full year net gaming revenue, which is in line with prior quarters and our structural and negative working capital position. This combination of negative working capital and growing scale supports our cash generation, which we expect will continue to improve and give us the flexibility to keep investing in growth, and as we have started to do, return capital to shareholders through the share buyback program. Turning to page 16, looking at our cash flow. We generated EUR 13.4 million of cash flow before share repurchases and the FX impact on cash balances. This shows that the business is now delivering not only positive Adjusted EBITDA, but also converting a significant part of it into cash flow.

Marcus Arildsson: In terms of our net working capital position, we ended the year with a negative EUR 22 million, or around 10% of our full year net gaming revenue, which is in line with prior quarters and our structural and negative working capital position. This combination of negative working capital and growing scale supports our cash generation, which we expect will continue to improve and give us the flexibility to keep investing in growth, and as we have started to do, return capital to shareholders through the share buyback program. Turning to page 16, looking at our cash flow. We generated EUR 13.4 million of cash flow before share repurchases and the FX impact on cash balances. This shows that the business is now delivering not only positive Adjusted EBITDA, but also converting a significant part of it into cash flow.

these figures include the impact of 2.4 million in share repurchases, that aiv commented on

Speaker #4: Finally, turning to page 18, where we are providing our 2026 outlook. As Aviv mentioned earlier, as Aviv mentioned earlier, we expect net gaming revenue in 2026 to be in the range of 235 to 245 million euros.

In terms of our networking Capital position, we ended the year with a negative 22 million uh or around 10% or a full year, net Gaming revenue which is in line with prior quarters and our structural and negative working capital position.

Speaker #4: Which at the midpoint represents around 7% growth versus 2025. We also expect adjusted EBITDA to be between 15 and 20 million euros, compared to 13.8 million in 2025.

This combination on negative working capital and growing scales supports our cash generation, which we expect will continue to improve. And give us the flexibility to keep investing in growth. And as we have started to do return Capital to shareholders through the share buyback program,

Starting to page 16. Looking at our cash flow.

Speaker #4: Which is more than 25% growth at the midpoint of that range. This outlook assumes a marketing excuse me. This outlook assumes a marketing investment broadly in line with that of 2025, which we believe is the right decision, given that 2026 is a World Cup year.

We generated 13.4 million of cash flow before share repurchases.

Marcus: As a result, our available cash increased by close to EUR 10 million, from EUR 35 million at the beginning of the year to EUR 45 million at the end of 2025. Finally, turning to page 18, where we are providing our 2026 outlook. As Aviv mentioned earlier, we expect net gaming revenue in 2026 to be in the range of EUR 235 to 245 million, which at the midpoint represents around 7% growth versus 2025. We also expect Adjusted EBITDA to be between EUR 15 and 20 million, compared to EUR 13.8 million in 2025, which is more than 25% growth at the midpoint of that range. This outlook assumes a marketing, excuse me.

Marcus Arildsson: As a result, our available cash increased by close to EUR 10 million, from EUR 35 million at the beginning of the year to EUR 45 million at the end of 2025. Finally, turning to page 18, where we are providing our 2026 outlook. As Aviv mentioned earlier, we expect net gaming revenue in 2026 to be in the range of EUR 235 to 245 million, which at the midpoint represents around 7% growth versus 2025. We also expect Adjusted EBITDA to be between EUR 15 and 20 million, compared to EUR 13.8 million in 2025, which is more than 25% growth at the midpoint of that range. This outlook assumes a marketing, excuse me.

And the FX impact on cash balances. This shows that the business is now delivering not only positive adjusted DBJ, but also converting a significant part of it into cash flow.

Speaker #4: And what's also considering the current competitive landscape in Mexico. We want to make sure we fully capture on this opportunity to reinforce our brand and further expand our customer base in what is already our key growth market.

As a result, our available cash increased by close to 10 million from 35 at the beginning of the year to 45 million at the end of 2025,

Uh, finally turning to page 18 where we are providing our 2026 Outlook.

Speaker #4: At the same time, we continue to see clear evidence of operating leverage in the model. As our brand matures and our customer base grows, we expect that over time, marketing as a percentage of the net gaming revenue will continue to trend down.

As seen mentioned earlier.

As we mentioned earlier, we expect net Gaming revenue in 2026, to be in the range of 235 to 245 million euros.

Speaker #4: While still allowing us to grow the top line. In other words, 2026 is a year where we are leaning into the opportunity in Mexico, but we see a path forward towards a more efficient marketing profile in the medium term.

Which at the midpoint represents around 7% growth versus 2025.

We also expect adjusted ebta to be between 15 and 20 million euros compared to 13.8 million in 2025.

Speaker #4: That's all from my end. I will now hand it back to Aviv for some closing remarks.

Which is more than 25% growth at the midpoint of that range.

Marcus: This outlook assumes a marketing investment broadly in line with that of 2025, which we believe is the right decision, given that 2026 is a World Cup year and was also considering the current competitive landscape in Mexico. We want to make sure we fully capture this opportunity to reinforce our brand and further expand our customer base in what is already our key growth market. At the same time, we continue to see clear evidence of operating leverage in the model. As our brand matures and our customer base grows, we expect that over time, marketing as a percentage of the net gaming revenue will continue to trend down, while still allowing us to grow the top line.

Marcus Arildsson: This outlook assumes a marketing investment broadly in line with that of 2025, which we believe is the right decision, given that 2026 is a World Cup year and was also considering the current competitive landscape in Mexico. We want to make sure we fully capture this opportunity to reinforce our brand and further expand our customer base in what is already our key growth market. At the same time, we continue to see clear evidence of operating leverage in the model. As our brand matures and our customer base grows, we expect that over time, marketing as a percentage of the net gaming revenue will continue to trend down, while still allowing us to grow the top line.

Speaker #1: Thank you, Marcus. Before we move to the Q&A session, I would like to thank once again to the whole team. It's been a hard year and we worked very hard in order to accomplish these results.

Speaker #1: The start, as you remember, was a bit bumpy. But we finished strong. As expected, and as we promised to the market, I would like also to thank the investors and the analysts that have joined us today.

This Outlook assumes a marketing uh excuse me, this Outlook assumes the marketing investment broadly in line with that of 2025, which we believe is the right decision, given that 2026 is a World Cup year. And what's also considering the current competitive landscape in Mexico, we want to make sure we fully caption this opportunity to reinforce our brand the further, expand our customer base in what is already.

Our key growth Market.

At the same time, we continue to see clear evidence of operating leverage in the model.

Speaker #1: For their ongoing support and interest in Codere Online, with that, I will end the call back to the operator to open the line for questions.

Marcus: In other words, 2026 is a year where we are leaning into the opportunity in Mexico, but we see a path forward towards a more efficient marketing profile in the medium term. That's all from my end. I will now hand it back to Aviv for some closing remarks.

Marcus Arildsson: In other words, 2026 is a year where we are leaning into the opportunity in Mexico, but we see a path forward towards a more efficient marketing profile in the medium term. That's all from my end. I will now hand it back to Aviv for some closing remarks.

As our brand matures and our customer base grows. We expect that over time marketing, as a percentage of the net Gaming, revenue will continue to Trend down while still allow allowing us to grow the Top Line.

Speaker #1: Thank you.

Speaker #3: We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press start now to raise your hand and start 6 to unmute.

In other words, 2026 is a year where we are leaning into the opportunity in Mexico but we see a path forward towards a more efficient marketing profile in the medium term.

Uh, that's all from my end. I will now hand it back to a V for some closing remarks.

Speaker #3: Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is now open.

Aviv: Thank you, Marcus. Before we move to the Q&A session, I would like to thank once again to the whole team. It's been a hard year, and we worked very hard in order to accomplish these results. The start, as you remember, was a bit bumpy, but we finished strong, as expected, and, as we promised to the market. I would like also to thank the investors and the analysts that have joined us today for their ongoing support and interest in Codere Online. With that, I will hand over the call back to the operator to open the line for questions. Thank you.

Aviv Sher: Thank you, Marcus. Before we move to the Q&A session, I would like to thank once again to the whole team. It's been a hard year, and we worked very hard in order to accomplish these results. The start, as you remember, was a bit bumpy, but we finished strong, as expected, and, as we promised to the market. I would like also to thank the investors and the analysts that have joined us today for their ongoing support and interest in Codere Online. With that, I will hand over the call back to the operator to open the line for questions. Thank you.

Thank you, malus.

ER,

Speaker #3: Please go ahead. As a reminder, please press start 6 on your telephone keypad to unmute. Thank you.

before we move to the Q&A session. Uh, I would like to thank once again to the old team, been a hard year and we worked very hard in order to accomplish this result.

the start as you remember was a bit bumpy but we finished strong as expected and as we promised to the market,

Speaker #4: Oh, I'm just wondering, first of all, thank you for taking the questions. How competitive is Spain currently on promotional activity? And are margins stabilizing in that market?

Operator: We will now begin the question and answer session. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is now open. Please go ahead. As a reminder, please press star six on your telephone keypad to unmute. Thank you.

I would like also to thank the investors and the analysts that have joined us today for their ongoing support and interest in Co online with that. I will handle the call back to the operator, to open the line for questions. Thank you.

Speaker #4: And then I just have a couple of follow-ups on Mexico.

Speaker #1: Okay, so thank you, Michael. We still see it's competitive but we are seeing that it's kind of going into a plateau. And we are able to grow our customer base with the current promotional let's say the current promotional activity or current promotional KPIs that we are using.

Who who now begin the question and answer session. If you would like to ask a question, please raise your hand. Now, if you have dialed in to today's call, please press star 9, to raise your hand and start 6 to unmute please stand by while we comply with the Q&A roster.

Your first question comes from the line of Michael kinsky with Noble Capital markets.

Your line is now open. Please go ahead.

Speaker #1: It took us a couple of quarters to stabilize it but we are seeing two consecutive quarters with growth. So I think we kind of found out what to do with this all this promotions going around.

As a reminder, please press star 6 on your telephone keypad to unmute. Thank you.

Michael Kupinski: I'm just wondering, first of all, thank you for taking the questions. How competitive is Spain currently on promotional activity, and are margins stabilizing in that market? Then I just have a couple of follow-ups on Mexico.

Speaker #1: So it's competitive but I think we are able to compete now.

Speaker #4: Gotcha. And then in Mexico, I was wondering if you can update us on the regulatory environment there. I know that there was some discussions evolving around the federal regulations and I was wondering if you can give us an update there.

Aviv: Okay, thank you, Michael. We still see it's competitive, we are seeing that it's kind of, going into a plateau, and we are able to grow our customer base with the current promotional, let's say, the current promotional activity or current promotional KPI that we are using. It took us a couple of quarters to stabilize it. We are seeing 2 consecutive quarters with growth. I think we kind of found out what to do with all these promotions going around. It's competitive, but I think we are able to compete now.

Aviv Sher: Okay, thank you, Michael. We still see it's competitive, we are seeing that it's kind of, going into a plateau, and we are able to grow our customer base with the current promotional, let's say, the current promotional activity or current promotional KPI that we are using. It took us a couple of quarters to stabilize it. We are seeing 2 consecutive quarters with growth. I think we kind of found out what to do with all these promotions going around. It's competitive, but I think we are able to compete now.

Oh, I'm just wondering. First of all, thank you for taking the questions. How, uh, competitive is Spain, currently on promotional activity and our margin stabilizing in that market and then I just have a couple of follow-ups on Mexico.

Okay, so thank you, Michael. Um

Speaker #4: And then more recently, I know Mexico had some issues about some of these cartels and things like that. I was wondering if that had any impact on your business there.

We still see it competitive but we are seeing that it's a kind of uh going into a plateau.

Speaker #4: And in particular, how that might be affecting maybe some of your marketing efforts in Mexico.

And and we are able to grow our customer base uh with the current promotional. Uh let's say the co promotional activity or current promotional kpi that we are using

Speaker #1: Regarding the regulatory framework or the federal regulatory framework, unfortunately, I have no news. It's been the government has been busy as you probably know with other things like what you've mentioned with the cartels.

Speaker #1: Other some internal fights we are also aware that two of our largest competitors there were shut down due to, let's call it, regulatory problems but it's more political problems internally.

Michael Kupinski: Gotcha. On, in Mexico, I was wondering if you can update us on the regulatory environment there. I know that there was some discussions evolving around the, you know, the federal regulations, and I was wondering if you could give us an update there. More recently, I know Mexico had some issues about, some of these cartels and things like that. I was wondering if that had any impact on, you know, your business there, and in particular, how that might be affecting maybe some of your marketing efforts in Mexico.

Uh, it took us a couple of quarters to stabilize it, but we are seeing, uh, two consecutive quarters with growth. So, so I think we kind of found out what to do with this, uh, all these promotions going around. So it's competitive, but I think we are able to compete now.

Speaker #1: They are not cooperating at the moment, building a regulatory framework. So I would say that the conversation with them are a bit stuck. Maybe it will the beginning of this year they will come back and continue this legislation process.

Gotcha. And then on in Mexico, I was wondering if you can update us on the um the the regulatory environment there. I know that there was some discussions about being around the, you know, the federal regulations. And I was wondering if you can give us an update there and then more recently, I know Mexico had some issues about um some of these cartels and things like that and I was wondering if that had any impact on um, you know, your your

Speaker #1: As you know, the increase the tax I think they chose that over completing the regulatory framework and this is their solution at least for the short term.

Business there. And in particular, how how that might be affecting maybe some of your marketing efforts in Mexico?

Aviv: Regarding the regulatory framework or the federal regulatory framework, unfortunately, I have no news. It's been, The government has been busy, as you probably know, with other things like what you've mentioned with the cartels, other some internal fights. We are also aware that two of our largest competitors there were shut down due to, let's call it, regulatory problems, but it's more political problems internally. They are not cooperating at the moment, building a regulatory framework, so I would say that the conversation with them are a bit stuck. Maybe, maybe it will, the beginning of this year, they will come back and continue this legislation process. As you know, they increased the tax.

Aviv Sher: Regarding the regulatory framework or the federal regulatory framework, unfortunately, I have no news. It's been, The government has been busy, as you probably know, with other things like what you've mentioned with the cartels, other some internal fights. We are also aware that two of our largest competitors there were shut down due to, let's call it, regulatory problems, but it's more political problems internally. They are not cooperating at the moment, building a regulatory framework, so I would say that the conversation with them are a bit stuck. Maybe, maybe it will, the beginning of this year, they will come back and continue this legislation process. As you know, they increased the tax.

and,

Regarding the regulatory framework or the federal regulatory framework. Unfortunately, I have no news.

Speaker #1: Regarding cartel and the news, the online business is not affected. We didn't see any changes in the numbers if this is the question. Retail location I'm not sure I'm able to comment but in general, if the government orders to close down location or close down areas, then we are doing as the government are saying but in the terms of online activity or our marketing efforts, nothing has changed at the moment.

It's been.

The government has been busy as you probably know.

With other things, like what you've mentioned with the cartels?

Are there some internal files.

We are also aware that 2 of our largest competitors. There were shut down due to let's call it the regulatory problems but it's more political problems. Internally

And they are not.

Cooperating at the moment, building a regulatory framework.

Speaker #1: The city itself the city itself is safe. The areas around the city are safe. So it's more shame. Hi, Michael. I think that's an opposite.

So I would say that the conversation with them are a bit stuck.

Maybe maybe it will the beginning of this year.

Speaker #1: I think that toward the World Cup, both the regulator and the government will have motivation to keep things calm as possible and to give some sort of like an friendly environment to sports which will support us in the online.

Aviv: I think they chose that over completing the regulatory framework, and this is their solution at least for the short term. Regarding cartel and the news, the online business is not affected. We didn't see any changes in the numbers, if this is the question. Retail location, I'm not sure I'm able to comment, but in general, if the government orders to close down location or close down areas, then we are doing as the government are saying. In the terms of online activity or our marketing efforts, nothing has changed at the moment. The city itself, the city itself is safe. The areas around the cities are safe.

Aviv Sher: I think they chose that over completing the regulatory framework, and this is their solution at least for the short term. Regarding cartel and the news, the online business is not affected. We didn't see any changes in the numbers, if this is the question. Retail location, I'm not sure I'm able to comment, but in general, if the government orders to close down location or close down areas, then we are doing as the government are saying. In the terms of online activity or our marketing efforts, nothing has changed at the moment. The city itself, the city itself is safe. The areas around the cities are safe.

And they will come back and continue this legislation process. As you know, the increase the tax,

I think they chose that over a completing the regulatory framework. And this is their solution at least for the short term.

Speaker #4: Yeah, and I was thinking just weirdly that it may be that more people staying at home might play more casino games and things like that online.

Uh, regarding a cartel and the news, the online business is not affected. We didn't see any changes in the numbers, if this is the question.

Speaker #4: I thought that maybe that might even benefit you in a way.

Speaker #1: From what we hear from our guys in Mexico, it's not as big as it sounds in the news. I mean, it's not like huge routes.

Uh, retail location. Uh, I'm not sure I'm able to comment. But in general if the government orders to close down uh location or closed down areas, then then we

Speaker #1: It's very local and in certain areas.

we are doing as the government are saying, but in the terms of

Speaker #4: Gotcha. All right. Thank you. That's all I have for now. Thank you.

online activity or our marketing efforts, nothing has changed at the moment.

Speaker #3: Your next question comes in a line of Jeff Stantial with Saiful. Your line is now open. Please go ahead.

Moshe: It's Moshe here. Hi, Michael. I think that's an opposite. I think that, towards the World Cup, both the regulator and the government will have motivation to keep things calm as possible and to give some sort of like friendly environment to sports, which will support us in the online.

[Company Representative] (Codere Online Luxembourg): It's Moshe here. Hi, Michael. I think that's an opposite. I think that, towards the World Cup, both the regulator and the government will have motivation to keep things calm as possible and to give some sort of like friendly environment to sports, which will support us in the online.

Speaker #5: Good morning. Thanks for taking our question. Maybe just hitting on guidance and the Mexico tax hike, which is where we've been getting most of the questions.

Speaker #5: Can you walk us through the financial impact, contemplated in guidance, both in terms of the gross impact as well as what you're assuming for mitigation?

Michael Kupinski: Yeah, I was thinking just weirdly that it's maybe that more people staying at home might, you know, play more casino games and things like that online. I thought that maybe that might even benefit you in a way.

The city, the city itself is is safe. The areas around the cities are safe, so it's more share. Hi, Michael. It's I think that's an opposite. I think that um, toward the World Cup, both the regulator and the government will have motivation to keep things come as possible. And to give some sort of like an friendly environment to support which will support us in the online.

Speaker #1: Yes. You want to start, Marcus? You want to comment on that or you want me to take it?

Speaker #5: Sure. No, I can start. I mean, first point, maybe we don't give precise individual guidance on specific items in specific countries. Having said that, the increase in tax is a negative for us as it is for all players.

Aviv: From what we hear from our guys in Mexico, it's not as big as it sounds in the news. I mean, it's not like huge riots. It's very local and in certain areas.

Aviv Sher: From what we hear from our guys in Mexico, it's not as big as it sounds in the news. I mean, it's not like huge riots. It's very local and in certain areas.

Yeah, and I was thinking just, weirdly, that maybe more people staying at home might, you know, play more casino games and things like that online. I thought that maybe that might even benefit you in a way.

Michael Kupinski: Gotcha. All right, thank you. That's all I have for now. Thank you.

From what we hear from our guys in Mexico. It's not as big as it sounds in the news. I mean, it's not like huge routes, it's very local. And in certain areas,

Speaker #5: And all our competitors in the sector in general. The things we've been doing when you think about the outlook for this year, it's the outlook is a net effect of many, many issues.

Gotcha. All right, thank you. That's all I have for now. Thank you.

Operator: Your next question comes from the line of Jeffrey Stantial with Stifel. Your line is now open. Please go ahead.

Your next question comes in the line of Jeff. Steno with CYO your line is now open. Please go ahead.

Speaker #5: One of the issues is the tax issue in Mexico. As you know, and as I think we detailed in the previous call, in the last call in November, we are taking a number of mitigation measures in Mexico.

Jeffrey Stantial: Good morning. Thanks for taking our question. Maybe just hitting on guidance and the Mexico tax hike, which is where we've been getting most of the questions. Can you walk us through the financial impact contemplated in guidance, both in terms of the gross impact as well as what you're assuming for mitigation?

Good morning. Thanks for taking our question.

Maybe just hitting on guidance and the Mexico tax hike, which is where we've been getting most of the questions.

Speaker #5: Both in terms of, number one, our marketing front. Number two, in terms of certain of our suppliers that we're working with. And overall operational efficiencies that's what we're doing principally in Mexico.

Can you walk us through the financial impact? Contemplated in guidance, both in terms of the growth impact, as well as what you're assuming for mitigation?

Aviv: Yes. You want to start, Marcus? You want to comment on that, or you want me to take it?

Aviv Sher: Yes. You want to start, Marcus? You want to comment on that, or you want me to take it?

Marcus: Sure. No, I can start. I mean, first point, maybe we don't give precise individual guidance on specific items in specific countries. Having said that, you know, the increase in tax is a negative for us, as it is for all players, and all our competitors in the sector in general. The things we've been doing, when you think about the outlook for this year, it's the outlook is a net effect of many, many issues. One of the issue is the tax issue in Mexico.

Marcus Arildsson: Sure. No, I can start. I mean, first point, maybe we don't give precise individual guidance on specific items in specific countries. Having said that, you know, the increase in tax is a negative for us, as it is for all players, and all our competitors in the sector in general. The things we've been doing, when you think about the outlook for this year, it's the outlook is a net effect of many, many issues. One of the issue is the tax issue in Mexico.

Speaker #5: And I don't know, Aviv, if you want to add something else to that.

Speaker #1: Yeah, I just want to comment to answer your question. I think in terms of revenues, we don't see a risk to the revenue generations.

Speaker #1: We will continue to generate revenues. In terms of marketing, investment decisions, regarding this year budget 2026, we managed to through our models to keep at least the same level of investment or not even more with the World Cup coming.

Countries, uh having said that uh, you know, the increase in taxes and negative for us, as it is for all players, and all our competitors in the sector in general.

uh, the things we've been doing, uh, when you think about the

Marcus: As you know, and as we, I think, we detailed in the previous call, in the last call in November, we are taking a number of mitigation, you know, measures in Mexico, both in terms of, number 1, our marketing front, number 2, in terms of certain of our suppliers that we're working with, and overall operational efficiencies. That's what we're doing principally in Mexico. I don't know, Aviv, if you want to add something else to that?

Marcus Arildsson: As you know, and as we, I think, we detailed in the previous call, in the last call in November, we are taking a number of mitigation, you know, measures in Mexico, both in terms of, number 1, our marketing front, number 2, in terms of certain of our suppliers that we're working with, and overall operational efficiencies. That's what we're doing principally in Mexico. I don't know, Aviv, if you want to add something else to that?

Speaker #1: So this will not be small this year. Regarding the EBITDA, there will be an EBITDA effect. We see it. It's not as big as we thought.

Speaker #1: We are able to mitigate most of it. There is some effect. But it's not a danger to the business. The business will continue to grow.

The outlook for this year. It's it's uh, the Outlook is a net effect of many, many issues. No, 1 of the issue is the tax issue in in Mexico. As you know, and as we, I think the detail in the previous, call in the last call in November, we are taking a number of mitigation, uh, you know, measures in Mexico. Both in terms of number 1, our marketing front number 2, in terms of certain of our suppliers that we're working with, um, and overall operational efficiencies. Um,

Speaker #1: And I think the guidance that we gave is, let's say, very non we don't bake in optimistic numbers there. This is very down to earth like we always do.

Aviv: I just want to comment, to answer your question. I think in terms of revenues, we don't see a risk in to the revenue generations. We will continue to generate revenues. In terms of marketing investment decisions regarding this year budget 2026, we managed to through our models to keep at least the same level of investment or not even more with the World Cup coming. This will not be smaller this year. Regarding the EBITDA, there will be an EBITDA effect. We see it. It's not as big as we thought. We are able to mitigate most of it. There is some effect, but it's not a danger to the business.

Aviv Sher: I just want to comment, to answer your question. I think in terms of revenues, we don't see a risk in to the revenue generations. We will continue to generate revenues. In terms of marketing investment decisions regarding this year budget 2026, we managed to through our models to keep at least the same level of investment or not even more with the World Cup coming. This will not be smaller this year. Regarding the EBITDA, there will be an EBITDA effect. We see it. It's not as big as we thought. We are able to mitigate most of it. There is some effect, but it's not a danger to the business.

Speaker #1: And we believe that we can deliver those results.

That's what we're doing principally in Mexico. Um, and I don't know if you want to add something else to that, I just, I just want to comment to answer your question. I think, in terms of revenues, we don't see a risk in to the revenue Generations, we will continue to generate revenues

Speaker #5: Great. Thanks for that. And I guess just to follow up on that bit, can you add some color on what you've seen from competitors following the tax hike?

In, in terms of marketing investment decisions, regarding this year, budget 2026. We are we managed to

Speaker #5: Have there been any immediate exits as promo and marketing behavior adjusted yet? And how do you see that adjusting going forward, heading into the World Cup?

To through our models to to keep at least the same level of investment or not, even more with the World Cup coming.

so this this will not, uh,

Speaker #1: Well, we all know, as I said, that from regulatory point of view, to be competitors are shut down just before the World Cup. We are still not we don't have the news that they are returning or coming back to the game.

This will not be smaller this year regarding the EPA. There will be an EPA effect. We see it, it's

It's not as big as we thought we are able to mitigate most of it. There is some effect.

Aviv: The business will continue to grow, and I think the guidance that we gave is, let's say very. We don't take in optimistic number there. This is very down to earth like we always do, and we believe that we can deliver those results.

Aviv Sher: The business will continue to grow, and I think the guidance that we gave is, let's say very. We don't take in optimistic number there. This is very down to earth like we always do, and we believe that we can deliver those results.

But it's it's not a danger to the business, the business will continue to grow. And I think the guidance that we gave is

Speaker #1: We think that some we know that some competitors want to come into the market. We hear the rumors. We talk to people. The fact is that there is no change as we speak.

is, um, let's say very

Speaker #1: In, let's call it, the advertisers, map in Mexico, it's still the same. But minus to be competitors. I didn't see yet newcomers with big budgets.

Non we don't bake in optimistic number there. This is very down to earth. Like we always do and we believe that we can deliver those results.

Jeffrey Stantial: Great! Thanks for that. I guess just to follow up on that a bit, can you add some color on what you've seen from competitors following the tax hike? Have there been any immediate exits, as promo and marketing behavior adjusted yet? How do you see that adjusting, going forward, heading into the World Cup?

Speaker #1: I know that they are talking we heard the rumors. I know some of them are contemplating whether to come in now or not with those tax changes.

Aviv: Well, we all know, as I said, that from a regulatory point of view, two big competitors are shut down just before the World Cup. We are still not, we don't have the news that they are returning or coming back to the game. We think that some, we know that some competitors want to come into the market. We hear the rumors, we talk to people. The fact is that there is no change as we speak in, let's call it, the advertisers map in Mexico, it's still the same, but minus two big competitors. I didn't see yet newcomers with big budgets. I know that they are talking, we heard the rumors. I know some of them are contemplating whether to come in now or not.

Aviv Sher: Well, we all know, as I said, that from a regulatory point of view, two big competitors are shut down just before the World Cup. We are still not, we don't have the news that they are returning or coming back to the game. We think that some, we know that some competitors want to come into the market. We hear the rumors, we talk to people. The fact is that there is no change as we speak in, let's call it, the advertisers map in Mexico, it's still the same, but minus two big competitors. I didn't see yet newcomers with big budgets. I know that they are talking, we heard the rumors. I know some of them are contemplating whether to come in now or not.

Great, thanks for that, and I guess, just to follow up on that a bit, can you add some color on what you've seen from competitors? While in the tax hike, have there been any immediate exits? Has promo and marketing behavior adjusted yet, and how do you see that adjusting going forward, heading into the World Cup?

Speaker #1: Eventually, I believe they will come in. But at the moment, as we speak, I didn't see any changes in this map. It's still the same as the last, let's say, three, four quarters.

Well, uh, we all know as I said that from a regulatory point of view to be competitors or shut down just before the World Cup, we are still not. We don't have the news that they are. That they are returning or coming back to

Speaker #1: Minus to be competitors.

to the game, and

Speaker #5: Great. And if I could squeeze one more and maybe given the change in player values in Mexico, how does this sort of change your prioritization of geographic expansion?

We think that some we know that some competitors want to come into the market.

We hear the rumors. We talk to people. The fact is that there is no change.

Speaker #5: And investment elsewhere in Latin America?

As we speak.

Speaker #1: No, I think the opposite. I think we are seeing less our CPA went lower. The player value for Mexico is a bit higher. Or a bit lower or remains the same.

In, let's call it the advertisers map in Mexico. It's still the same. But minus 2 B competitors. I didn't see yet. Newcomers with big budgets. I know that they are talking. We heard the rumors.

Speaker #1: Let's say around the same numbers, but CPAs is lower. So the ROI is better. We will continue to invest into Mexico. Going into new markets at the moment, before the World Cup, I don't think it's wise for us.

I know some of them are

Aviv: With those tax changes, eventually, I believe they will come in. At the moment, as we speak, I didn't see any changes in this map. It's still the same as the last, let's say, three, four quarters, minus two big competitors.

Aviv Sher: With those tax changes, eventually, I believe they will come in. At the moment, as we speak, I didn't see any changes in this map. It's still the same as the last, let's say, three, four quarters, minus two big competitors.

Contemplating whether to come in an hour or not with those tax changes eventually, I believe they will come in.

Speaker #1: I think we will continue if we have a, let's call it, excessive income or excessive EBITDA. The next dollar, we will still invest into the two core markets that we have, which is Spain and Mexico.

But at the moment as we speak, I didn't see any changes in this map.

It's still the same as the last. Let's say 3 4 quarters minus 2 B competitors.

Jeffrey Stantial: Great! If I could squeeze one more and maybe, given the change in player values in Mexico, how does this sort of change your prioritization of geographic expansion and investment elsewhere in Latin America?

Speaker #1: In Spain, also, we see good results and we see opportunity to grow. We are growing. So still our money ROI on the investment over those two markets is still big.

Aviv: No, I think the opposite. I think we are seeing less, our CPA went lower. The player value for Mexico is a bit higher, or a bit lower, or remains the same, let's say, around the same numbers, but CPA is lower, so the ROI is better, and we will continue to invest into Mexico. Going into new markets at the moment before the World Cup, I don't think it's wise for us. I think we will continue if we have, let's call it, excessive income or excessive EBITDA. The next dollar, we will still invest into the 2 core markets that we have, which is Spain and Mexico. In Spain also, we see good results and we see opportunity to grow.

Aviv Sher: No, I think the opposite. I think we are seeing less, our CPA went lower. The player value for Mexico is a bit higher, or a bit lower, or remains the same, let's say, around the same numbers, but CPA is lower, so the ROI is better, and we will continue to invest into Mexico. Going into new markets at the moment before the World Cup, I don't think it's wise for us. I think we will continue if we have, let's call it, excessive income or excessive EBITDA. The next dollar, we will still invest into the 2 core markets that we have, which is Spain and Mexico. In Spain also, we see good results and we see opportunity to grow.

Great. And if I get a squeeze 1, more, and maybe uh given the given the change in player values in Mexico. How does this sort of change, your your prioritization of, of geographic expansion and investment elsewhere in last in Latin America?

Speaker #1: I don't see us coming into new markets in the near future.

Speaker #5: That's great. Thank you. I'll pass it on.

Speaker #2: As a reminder, if you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press start now to raise your hands and start 6 to unmute.

No, I think I think the opposite I think we are seeing less our CPI CPA went lower. The player value for Mexico is a bit higher or a bit lower or Remains the Same. Let's say around the same numbers but CPA is lower. So the rise is better.

Speaker #2: Your next question comes from the line of Arthur Roulac with three courts. Your line is now open. Please go ahead.

And we will continue to invest into Mexico, going into new markets at the moment before the World Cup.

Speaker #4: Hi. Thank you for taking my call. I have a couple of questions. One, can you chat a little bit about Colombia now that the, I guess, the VAT tax, I believe, has been removed?

Speaker #4: And what that may mean or may not mean in terms of investment and opportunity going forward there?

Aviv: We are growing, still our money, ROI on the investment over those two markets is still big. I don't see us coming into new markets in the near future.

Aviv Sher: We are growing, still our money, ROI on the investment over those two markets is still big. I don't see us coming into new markets in the near future.

Speaker #3: Hello. Can you hear me?

Feel big, I don't see us coming into new markets in the near future.

Speaker #4: Yeah, we can hear you. I don't know, Aviv, if you want to start taking the question.

Jeffrey Stantial: That's great. Thank you. I'll pass it on.

That's great. Thank you. I'll pass it on.

Operator: As a reminder, if you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. Your next question comes from the line of Arthur Roulac with Three Court. Your line is now open. Please go ahead.

Speaker #3: Oh, did you not hear my question?

Speaker #1: We have internet problems, I think, on my end. Can you repeat it, please?

Speaker #3: Oh, sure. Sorry, Aviv. I was just asking about Colombia now that the VAT tax has been I believe repealed at the end of last year, maybe early this year.

As a reminder, if you would like to ask a question, please raise your hand. Now, if you have dialed in today's call, please press Start 9 to raise your hands, in Star 6, to unmute your. Next question comes from the line of Arthur ruark with 3 quarts. Your line is now open. Please go ahead.

Arthur Roulac: Hi, thank you for taking my call. I have a couple questions. One, can you chat a little bit about Colombia now that the, I guess, the VAT tax, I believe, has been removed, and what that may mean or may not mean in terms of investment and opportunity going forward there? Hello, can you hear me?

Speaker #3: What do you view as are you going to be putting money back into that market? Are you viewing it more positively? What are your thoughts about it?

Uh hi. Thank you for taking my my call. I have a couple questions.

Speaker #1: Yeah. So yes, a good question. The straightforward answer is that we are still not sure if this VAT removal is permanent or not. I'm still not able to get a final answer from lawyers.

1 can you chat a little bit about uh, Columbia now that the, I guess the that tax, I believe, has been removed and what that may mean or may not mean in terms of investment and opportunity going forward there?

Marcus: Yeah, we can hear you. I don't know if you want to start taking the question.

Marcus Arildsson: Yeah, we can hear you. I don't know if you want to start taking the question.

Uh, hello, can you hear me?

Speaker #1: Let's say in the past few weeks, since the removal, we see good recovery in our player database. At the moment, until it's clear to us whether this VAT removal is permanent or not, we will not continue to invest.

We can hear you. I don't know if you if you want to start taking the question.

Arthur Roulac: Oh, did you not hear my question?

Aviv: We have internet problems, I think, on my end. Can you repeat it, please?

Aviv Sher: We have internet problems, I think, on my end. Can you repeat it, please?

Oh, did you? Did you not hear my question? We have a

Arthur Roulac: Oh, sure. Sorry, Aviv. I was just asking about Colombia. Now that the VAT tax has been, I believe, repealed at the end of last year, maybe early this year, what do you view is like? Are you gonna be putting money back into that market? Are you viewing it more positively? What are your thoughts about it?

Speaker #1: Once we understand if this removal is permanent, then we are able to take this decision. For now, we are enjoying players coming back, enjoying our promotions.

We have internet problems—I think on my end. Can you repeat it, please? Oh, sure. Uh, sorry. Sorry, I—I was just asking about Colombia, now that the tax has been, uh, I believe, repealed at the end of last year, maybe early this year.

Speaker #1: So it's a positive KPI. And right now, in our budgets, we are still treating the VAT as it exists. So there is a small upside there if we understand that this VAT removal is permanent.

Aviv: Yeah. Yes, a good question. The straightforward answer is that we are still not sure if this VAT removal is permanent or not. I'm still not able to get a final answer from lawyers. Let's say in the past few weeks since the removal, we see good recovery in our player database. At the moment, until it's clear to us whether this VAT removal is permanent or not, we will not continue to invest. Once we understand if this removal is permanent, we are able to take this decision. For now, we are enjoying players coming back, enjoying our promotion, it's a positive KPI. Right now in our budgets, we are still treating the VAT as it exists.

Aviv Sher: Yeah. Yes, a good question. The straightforward answer is that we are still not sure if this VAT removal is permanent or not. I'm still not able to get a final answer from lawyers. Let's say in the past few weeks since the removal, we see good recovery in our player database. At the moment, until it's clear to us whether this VAT removal is permanent or not, we will not continue to invest. Once we understand if this removal is permanent, we are able to take this decision. For now, we are enjoying players coming back, enjoying our promotion, it's a positive KPI. Right now in our budgets, we are still treating the VAT as it exists. There is a small upside there if we understand that this VAT removal is permanent.

Um, what do you view is like? Are you going to be putting money back into that market? Are you viewing it? More positively. How? What are your thoughts about it? Yeah, so so yes, a good question.

Speaker #4: Maybe just to add to that, Aviv, as well, of course, we have the elections on the horizon. And another point also, just to mention, just recently, in the last few days, there were some further legislative changes in Colombia.

The the the straightforward answer is that we are still not sure if this what removal is permanent or not, I'm still not able to get a final answer from lawyer.

Let's say in the past few weeks.

Speaker #4: Which seems like there is a small tax that we may be caught up in, which is not a gaming tax, but it's a small additional tax that had been introduced under the last emergency decrease that had been instituted in this country.

Since the removal, we see good recovery in our player database.

At the moment until it's clear to us, whether this vat removal is permanent or not.

We will not continue to invest once.

Speaker #4: And so just wanted to mention that the environment continues to be fluid. And we would like to be a little bit more on the sidelines, so to speak, until that we see that the environment firms up and that we can have more certainty around the outlook for the medium term, no?

once we understand if this removal is

Is is is permanent. Then we are able to take this decision for now. We are enjoying players coming back enjoying our promotion. So it's a positive kpi.

Speaker #3: Got it. And on the marketing side, obviously, revenues have grown a lot. I think when you originally raise money, you're doing about 80 million euros.

Aviv: There is a small upside there if we understand that this VAT removal is permanent.

Marcus: Maybe just to add to that, Aviv, as well. Of course, we have the elections on the horizon. Another point also just to mention, just recently, in the last few days, there were some further legislative changes in Colombia, which seems like there is a small tax that we may be caught up in, which is not a gaming tax, but it's a small additional tax that has been introduced under the last emergency decrees that have been instituted in this country. So, you know, just wanted to mention that, you know, the environment continues to be fluid and, you know, we would like to.

Marcus Arildsson: Maybe just to add to that, Aviv, as well. Of course, we have the elections on the horizon. Another point also just to mention, just recently, in the last few days, there were some further legislative changes in Colombia, which seems like there is a small tax that we may be caught up in, which is not a gaming tax, but it's a small additional tax that has been introduced under the last emergency decrees that have been instituted in this country. So, you know, just wanted to mention that, you know, the environment continues to be fluid and, you know, we would like to.

And the right now in our budgets. Uh, we are still treating the vat as it is exist. So there is a small upside there. If we understand that, is that removal is permanent,

Speaker #3: And let's say you do 240, 245, 250 this year. Marketing as a percent has come down a lot. Most of your competitors that are more mature I think you'll be in the low 30% range this year or down at between 15 and 20 percent.

Speaker #3: Can we think about as a steady state marketing? Is there a reason to think that you'd be materially different than the rest of the industry around the entire world from a marketing as a percent of revenue once you get into a more steady state period?

Aviv: We'll be a little bit more on the sidelines, so to speak, until that we see that the environment firms up and that we can have more certainty around the outlook for the medium term now.

Marcus Arildsson: We'll be a little bit more on the sidelines, so to speak, until that we see that the environment firms up and that we can have more certainty around the outlook for the medium term now.

Speaker #1: Yes. I'll answer to that. I think it's an easy question and an easy answer. In Spain, where we are more mature, you see those kind of ratios, even less, right?

Arthur Roulac: Got it. You know, on the marketing side, obviously, revenues have grown a lot. I think when you originally raised money, you were doing about EUR 80 million, and, you know, let's say you do 240, 245, 250 this year. Marketing as a percent has come down a lot. In most of your, you know, competitors that are more mature, I think you'll be in, like, the low 30% range this year, or down at, you know, between 15% and 20%. Can we think about as a steady state marketing, you know, is there a reason to think you'd be materially different than the rest of the industry around the entire world from a marketing as a percent of revenue once you get into a more steady state period?

Maybe just start that with as well. Uh of course we have the elections on the horizon and um, another point also just to mention just recently in the last few days uh there were some further legislative changes in Colombia which seems like there is a small tax that we may be caught up in which is not a gaming tax. But it's it's a small additional tax that have been introduced under the under the last emergency decrease that had been instituted in this country and so you know, just wanted to mention that but you know the environment continues to be fluid and you know, we would like to um we'll be a little bit more on the sidelines. So to speak until that we see that the environment first up and that we can have more certainty around the outlook for the medium terminal.

Speaker #1: We are the same way the same behavior, let's say, like the rest of the world. In Mexico, we still believe we are in a growth phase.

Speaker #1: And we have a strong competition with Caliente and others. That are putting heavy funds into the markets. We do see low CPAs there. So we believe that we are still in a growth phase.

Got it in, you know, on on the marketing side obviously uh revenues have grown a lot. I think when you originally raised money, you're doing about 80 million euros. And, you know, let's say, you do 240 245 250 this year.

Uh, marketing is a percent has come down a lot, you know, most of your, you know, competitors that are more mature.

I think you'll be in like, the low 30% range this year, are down at

Speaker #1: In a growth phase, you cannot maintain those kind of ratios. And right now, Mexico consists most of the marketing spend. So if you separate between Spain and Mexico, in Spain, we are meeting this criteria.

Speaker #1: In Mexico, I think in the future, not the near future, we will be able to meet this criteria. But we are still in a growth phase.

Aviv: Yes, I'll answer to that. I think it's an easy question and an easy answer. In Spain, where we are more mature, you see those kind of ratios, even less, right? We are the same way, the same behavior, let's say, in the, like, the rest of the world. In Mexico, we still believe we are in a growth phase, and we have a strong competition with Caliente and others that are putting heavy funds into the market. We do see low CPAs there, we believe that we are still in a growth phase. In a growth phase, you cannot maintain those kind of ratios. Right now, Mexico consists most of the marketing spend. If you separate between Spain and Mexico, in Spain, we are meeting this criteria.

Aviv Sher: Yes, I'll answer to that. I think it's an easy question and an easy answer. In Spain, where we are more mature, you see those kind of ratios, even less, right? We are the same way, the same behavior, let's say, in the, like, the rest of the world. In Mexico, we still believe we are in a growth phase, and we have a strong competition with Caliente and others that are putting heavy funds into the market. We do see low CPAs there, we believe that we are still in a growth phase. In a growth phase, you cannot maintain those kind of ratios. Right now, Mexico consists most of the marketing spend. If you separate between Spain and Mexico, in Spain, we are meeting this criteria.

Um, you know, between 15 and 20%, can we think about as a steady state marketing? You know, is there a reason to think that you've been materially different than the rest of the industry around the entire world from a marketing as a percent of Revenue? Once you get into more steady state, uh, period,

Yes, I I I I'll answer to that. If I think it's a

Speaker #1: I still want to make more investments and to take more market share. Especially with two competitors right now that are down. World Cup is coming up.

I think it's an easy question and an easy answer.

Speaker #1: So let's say Spain, we are already there. Mexico will take a small time to meet it.

In Spain where we are more mature, you see those kind of ratios even less, right? We are the the same way the same behavior or let's say in the like the rest of the world.

Speaker #4: And I want to add something. It's Marcus. It's a very conservative approach to analyze the ratio between marketing spend and revenues. I think that what is more accurate and more, I think that from our perspective, at least, it's about the cost per acquisition.

in Mexico, we still believe we are in a growth phase and we have a strong competition with a

We are still in a growth phase. You cannot maintain those kinds of ratios.

Speaker #4: And as far as we can lower with the same quality of players the cost per acquisition by many aspects of efficiency. And some action that we are taking with the CRM so we prefer to approach and to purchase as much as we can players as a kind of like a firepower for the year ahead.

So and and right now, Mexico consists most of the marketing spend.

Aviv: In Mexico, I think in the future, not the near future, we will be able to meet this criteria, but we are still in a growth phase. We still want to make more investments and to take more market share, especially with two competitors right now that are down. World Cup is coming up. Let's say Spain, we are already there. Mexico will take us more time to meet it.

Aviv Sher: In Mexico, I think in the future, not the near future, we will be able to meet this criteria, but we are still in a growth phase. We still want to make more investments and to take more market share, especially with two competitors right now that are down. World Cup is coming up. Let's say Spain, we are already there. Mexico will take us more time to meet it.

Speaker #4: So it's less about how much we're spending versus the revenues. It's more about how many players can we acquire with a certain amount of CPA as a target that we give ourselves that we know that the ROI is on a certain multiple of returns over years.

So, if you separate between Spain and Mexico—in Spain, we are meeting this criteria. In Mexico, I think in the future, not the near future, we will be able to meet this criteria, but we are still in a growth phase. We still want to make more investments and to take more market share, especially with the two competitors right now that are down. World Cup is coming up.

so,

Moshe: I want to add something, it's Moshe. You know, it's a very conservative approach to analyze the ratio between marketing spend and revenues. I think that what is more accurate and more from our perspective at least, it's about the cost per acquisition. As far as we can lower with the same quality of players, the cost per acquisition by many aspects of efficiency and some action that we are taking with the CRM. We prefer to approach and to purchase as much as we can players is kind of like a firepower for the year ahead.

[Company Representative] (Codere Online Luxembourg): I want to add something, it's Moshe. You know, it's a very conservative approach to analyze the ratio between marketing spend and revenues. I think that what is more accurate and more from our perspective at least, it's about the cost per acquisition. As far as we can lower with the same quality of players, the cost per acquisition by many aspects of efficiency and some action that we are taking with the CRM. We prefer to approach and to purchase as much as we can players is kind of like a firepower for the year ahead.

Let's say, Spain, we are already there. Mexico will take a small time to meet it.

And I want to, I want to add something its motion.

Speaker #4: And in Mexico, as Aviv said, we still see a very good ratio. We see that we can maintain a very stable, even getting lower the CPA over time.

You know, it's it's a very conservative approach to analyze the the the ratio between marketing spend and revenues. I think that what is more accurate and more rating that um um

Speaker #3: That's very helpful. Thank you for that.

Speaker #4: And by the way, that's what by the way, that's what dictates in the end, the market share. I mean, that's how you build market share in a market.

Speaker #3: Thank you. I've got two more. I'll just squeeze in. One, in the revenue guidance, are you making any assumption about foreign exchange in there?

From our suspected. At least it's about the cost per acquisition. And as far as we can lower with the same quality of players, the cost per acquisition by many um aspects of efficiency

And uh, uh, some uh action that we're taking with the CRM.

Speaker #3: Are you just assuming that where the foreign exchange was at the end of the year will be consistent throughout the entire year?

So, we prefer to approach and to um, to purchase as much as we can players.

Moshe: It's less about how much we're spending versus the revenues, it's more about how many players can we acquire with a certain amount of CPA as a target that we give ourselves, that we know that the ROI is on a certain multiple of returns over years. In Mexico, as Aviv said, we still see a very good ratio. We see that we can maintain very stable and even getting lower the CPA over time.

[Company Representative] (Codere Online Luxembourg): It's less about how much we're spending versus the revenues, it's more about how many players can we acquire with a certain amount of CPA as a target that we give ourselves, that we know that the ROI is on a certain multiple of returns over years. In Mexico, as Aviv said, we still see a very good ratio. We see that we can maintain very stable and even getting lower the CPA over time.

Speaker #4: Marcus, you want to comment on the ethics?

Speaker #1: Yeah, sure. Well, I mean, we have our forecasts so at the end of last year, the forecast that we had built in into observing the market, the foreign exchange market, and the forwards, with respect to the exchanges, that's what we have built into the built into our guidance.

As um, as a kind of like a fire powers for the year ahead. So it's less about how much we're spending versus the, the revenues. It's more about. How many players can we acquire with a certain amount of CPA, as a Target that we give ourselves. That we know that the ROI is on a certain multiple of returns over years.

And in Mexico, as we said we still see a very good ratio.

Arthur Roulac: That's very helpful. Thank you for that.

Moshe: By the way, that's why. That's what, by the way, that's what dictates in the end, the market share. I mean, that's how you build market share in the market.

[Company Representative] (Codere Online Luxembourg): By the way, that's why. That's what, by the way, that's what dictates in the end, the market share. I mean, that's how you build market share in the market.

Speaker #1: Of course, the guidance will be subject to those exchange rates in reality moving up and down during the year. So I think so far in the year, the Mexican peso has improved a little bit, with respect to the euro.

Arthur Roulac: Thank you. I've got 2 more I'll just squeeze in. One, in the revenue guidance, are you making any assumption about foreign exchange in there? Are you just assuming that where the, you know, foreign exchange was at the end of the year will be consistent throughout the entire year?

That's very helpful. Thank you for that, by the way. That, that's why, that's why that's what by the way. That's what dictating the end, the market share. I mean, that's how you build market share in the market.

Speaker #1: So that is helpful for us. We'll see how it continues to develop during the year. But clearly, there is an ethics component in the forecasts.

Speaker #3: Got it. And my final one is, can you share what competitors have been perhaps rumored or market chatter with around who may or may not be interested in entering the Mexican market?

Thank you. Um and we got 2 more. I'll just squeeze in 1 in the revenue guidance. Are you making any assumption about Foreign Exchange in there you just assuming

Moshe: Mark, if you want to comment on FX?

[Company Representative] (Codere Online Luxembourg): Mark, if you want to comment on FX?

That where the you know foreign exchange was at the end of the year will be consistent throughout the entire year.

Aviv: Yeah, sure. Well, I mean, we have our forecasts. At the end of last year, the forecast that we had built in into, you know, observing the market, the foreign exchange market and the forwards, with respect to the exchanges, that's what we have built into our guidance. Of course, the guidance will be subject to those exchange rates in reality moving up and down during the year. I think so far in the year, the Mexican peso has improved a little bit with respect to the euro, so that is helpful for us. We'll see how it continues to develop during the year. Clearly there is an FX component in the forecast.

Marcus Arildsson: Yeah, sure. Well, I mean, we have our forecasts. At the end of last year, the forecast that we had built in into, you know, observing the market, the foreign exchange market and the forwards, with respect to the exchanges, that's what we have built into our guidance. Of course, the guidance will be subject to those exchange rates in reality moving up and down during the year. I think so far in the year, the Mexican peso has improved a little bit with respect to the euro, so that is helpful for us. We'll see how it continues to develop during the year. Clearly there is an FX component in the forecast.

Speaker #1: Yes. So we are we heard about hard rock wants to come in. We know a company from Spain called Versus. Which is our Franco that are planning to come in.

Yeah, sure. Well, I mean, we have our forecasts. Uh, so at the end of last year, the forecast that we had built in, uh, into, uh, you know, observing the market, the foreign exchange market, and the forwards with respect to the exchanges. That's what we have built into the, built into, uh—

Speaker #1: We know Sportium, with Ganabet that already bought a huge sponsorship with Tigris, wants to come in. And we know that local players like Big Ball are just changing platform and wants to make investments.

Speaker #1: I think those are like, let's say, the four big ones that are sitting on the fence. But in terms of advertisers' map, I haven't seen them.

Arthur Roulac: Got it. My final one is, can you share what competitors have been perhaps, you know, rumored or market chatter with around who may or may not be interested in entering the Mexican market?

Our guidance. Of course, the guidance will be subject to those exchange rates in reality, moving up and down during the year. So, um, I think so far in the year, the Mexican peso has improved a little bit with respect to the euro. So that is helpful, uh, for us, we'll see how it continues to develop during the year. Um, but clearly, there is an Ethics component in the forecast.

Got it in my my my final 1 is. Can you share? Uh you what uh what competitors

Speaker #1: Novibet is there on the sponsorship with Cruz Azul, that is not taking a lot of attention. So there are competitors. I think right now, the big ones are the ones that are taking position is Play Do It.

Um have been perhaps, you know, rumored or Market chatter with around, who may or may not be interested in entering the Mexican market.

Moshe: Yes. We heard about Hard Rock wants to come in. We know a company from Spain called Versus, which is Al Franco, that are planning to come in. We know Sportium with Ganabet, that already bought a huge sponsorship with Tigres, wants to come in. We know that local players like Big Bola just changed the platform and wants to make investments. I think those are like, let's say, the four big ones that are sitting on the fence. In terms of advertisers map, I haven't seen them. Novi Bet is there on the background, with a sponsorship with Cruz Azul that is not taking a lot of attention. There are competitors.

[Company Representative] (Codere Online Luxembourg): Yes. We heard about Hard Rock wants to come in. We know a company from Spain called Versus, which is Al Franco, that are planning to come in. We know Sportium with Ganabet, that already bought a huge sponsorship with Tigres, wants to come in. We know that local players like Big Bola just changed the platform and wants to make investments. I think those are like, let's say, the four big ones that are sitting on the fence. In terms of advertisers map, I haven't seen them. Novi Bet is there on the background, with a sponsorship with Cruz Azul that is not taking a lot of attention. There are competitors.

Speaker #1: Just behind us, I think. And Winpot is over there as well. So yes, the market is becoming more and more let's call it saturated.

Yes, so we are. We heard about

How do wants to come in?

We know a company from Spain called versus

Speaker #1: In terms of advertising on TV, still, Caliente and us are leading the market by far.

Which is our Franco that are planning to come in. We know sportium with Ghana. Bet that already bought a huge sponsorship with Tigris, wants to come in.

and,

And we know that local players like big baller just change platform and wants to make investments. Uh,

Speaker #3: Your next question comes from the line of Ryan Sigdahl with Craig Holland. Your line is now open. Please go ahead.

Speaker #5: Good day, guys. Nice execution. Sticking on kind of World Cup marketing spend, last quarter, you said that you were going to kind of lean back into the higher player values, probably CPA going up just based on the channel mix.

I think those are like, let's say the 4 big ones that that are sitting on the fence, but in terms of advertisers map, I haven't seen them. No, bet is there on the background with a sponsorship with kasule, that is not taking a lot of attention.

Moshe: I think right now, the big ones are the ones that are taking position is Playdoit.

[Company Representative] (Codere Online Luxembourg): I think right now, the big ones are the ones that are taking position is Playdoit. just behind us, I think, and Winpot is over there as well. Yes, the market is becoming more and more, let's call it, saturated. In terms of advertising on TV, still Caliente and us are leading the market by far.

Aviv: ... just behind us, I think, and Winpot is over there as well. Yes, the market is becoming more and more, let's call it, saturated. In terms of advertising on TV, still Caliente and us are leading the market by far.

Speaker #5: You were going after. Feels like you kind of continued with the same trend you were or strategy you were doing last quarter or recently this year.

So there, there are competitors. I think, right? Right now, the big ones are are the ones that are taking position is play, do it just behind us? I think. And, uh,

And win pot is over there as well. So

Speaker #5: I guess maybe talk through what you're seeing, if that strategy changed from the update you gave last quarter, and kind of where you're targeting and which channels for those players.

Getting the market by far.

Speaker #1: Okay. So what happened in the last quarter, if you remember, is that we bought low player value with low CPA and the strategy we ended it in the end of the first quarter, mid-second quarter.

Operator: Your next question comes from the line of Ryan Sigdahl with Craig-Hallum. Your line is now open, please go ahead.

Your next question comes from the line of Ryan siddall with Craig Holland. Your line is now open. Please go ahead.

Speaker #1: So this traffic from the mix is disappeared. What you see now is actually a lower CPA with the same player value. So it means that we are able to optimize our efforts and buy more players with less money.

Ryan Sigdahl: Good day, guys. Nice execution. Sticking on kind of World Cup marketing spend, last quarter, you said that you were going to kind of lean back into the higher player values, probably CPA going up just based on the channel mix, you were going after. Feels like you kind of continued with the same trend or strategy you were doing last quarter or recently this year. I guess maybe talk through what you're seeing, if that strategy changed from the update you gave last quarter, and kind of where you're targeting and which channels for those players?

Good day guys. Uh, nice execution.

Um,

Speaker #1: So the strategy didn't change, but I think the team did a good job and optimizing. Took us a little bit of a while and investing into technology.

Speaker #1: And discipline, let's call it like that. So we are able to execute this way. We will continue. We see as Moshe said before, CPAs goes down, probably we need to increase investment in order to take more market share.

Sticking on kind of World Cup marketing, spend last quarter. You said that you were going to kind of lean back into the higher player values, probably CPA going up just based on the channel mix uh you were you were going after um feels like you kind of continued with the same Trend. You were or strategy you were doing last quarter recently this year. Um, I guess maybe talk through what you're seeing. If that strategy changed from the update, you gave last quarter, um, and kind of where you're targeting and which

channels for those players.

Aviv: Okay. What happened in the last quarter, if you remember, is that we bought low player value with low CPA, and this strategy, we ended it in the end of Q1, mid Q2. This traffic from the mix is disappeared. What you see now is actually a lower CPA with the same player value. It means that we are able to optimize our efforts and buy more players with less money. The strategy didn't change, but I think the team did a good job in optimizing. Took us a little bit of a while and investing into technology and discipline, let's call it like that, so we are able to execute this way. We will continue.

Aviv Sher: Okay. What happened in the last quarter, if you remember, is that we bought low player value with low CPA, and this strategy, we ended it in the end of Q1, mid Q2. This traffic from the mix is disappeared. What you see now is actually a lower CPA with the same player value. It means that we are able to optimize our efforts and buy more players with less money. The strategy didn't change, but I think the team did a good job in optimizing. Took us a little bit of a while and investing into technology and discipline, let's call it like that, so we are able to execute this way. We will continue.

Um okay. So what happened in the last quarter if you remember is that uh we bought we bought a low

Speaker #1: So overall, we are happy. Strategy didn't change. The execution changed a bit, but the strategy is still the same.

Low player value with low CPA, and the strategy.

Speaker #5: Very good. And then just maybe the cadence of that marketing spend this year, is it more concentrated Q2, Q3 with the World Cup, or is it more spread out and how much of that can you do kind of in anticipation and ahead of the World Cup starting?

We, we ended it in the end of the first quarter made the second quarter, so this traffic from the mix is disappeared.

What you see now is actually a lower CPA with the same player value. So, it means that we are able to optimize our efforts.

Speaker #1: No, I think I commented in the past. Right now, the World Cup prices are a bit too high for us. So in terms of spread, we will continue to spread or make the efforts the same as we did every year.

And buy more players with less money.

Speaker #1: Maybe just spreading it more evenly because usually during the summer, we are reducing the advertising spend. So here, we will continue to spend around the World Cup.

Aviv: We see, as Moshe said before, CPAs goes down, probably we need to increase investment in order to take more market share. Overall, we are happy. Strategy didn't change. The execution changed a bit, but the strategy is still the same.

Aviv Sher: We see, as Moshe said before, CPAs goes down, probably we need to increase investment in order to take more market share. Overall, we are happy. Strategy didn't change. The execution changed a bit, but the strategy is still the same.

So, the strategy didn't change but I think the team did a good job and optimizing uh, took us a little bit of a while and investing into technology and uh discipline let's call it like that. So we are able to execute this way.

Speaker #1: But with no increase during those months. No, no increase relatively to other months, right? So I think in terms of cadence, we will be more or less we'll spread it more or less the same as we did in the previous years.

We will continue, we see as much as I said before. CPAs goes down, probably we need to increase investments in dual. In, in order to to take more market share

So overall we are, happy started, it didn't change the the the execution changed a bit but the strategy is still the same.

Ryan Sigdahl: Very good. Just maybe the cadence of that marketing spend this year, is it more concentrated Q2, Q3 with the World Cup, or is it more spread out? How much of that can you do, kind of in anticipation and ahead of the World Cup starting?

Speaker #1: Hopefully, we sum upside from the World Cup because we will continue to invest around the World Cup and the summer. Which we usually lowering our investment there.

Speaker #1: So I think this is the tactical way that we see this year.

Aviv: I think, I commented in the past, right now, the World Cup prices are a bit too high for us. In terms of spread, we will continue to spread or make the effort the same as we did every year. Maybe just spreading it more evenly, 'cause usually during the summer we are reducing the advertising spend. Here we will continue to spend around the World Cup, but with no increase during those months. No increase relatively to other months, right? I think in terms of cadence, we will be more or less, we spread it more or less the same as we did in the previous years.

Aviv Sher: I think, I commented in the past, right now, the World Cup prices are a bit too high for us. In terms of spread, we will continue to spread or make the effort the same as we did every year. Maybe just spreading it more evenly, 'cause usually during the summer we are reducing the advertising spend. Here we will continue to spend around the World Cup, but with no increase during those months. No increase relatively to other months, right? I think in terms of cadence, we will be more or less, we spread it more or less the same as we did in the previous years.

Very good. Um and then just maybe the Cadence of that marketing spend this year, is it more concentrated Q2 Q3 with the World Cup? Or is it more spread out? And how much that can you do kind of an anticipation and ahead of the World Cup starting?

Speaker #5: Last question for me, you launched a poker app. I guess talk through why the or in Mexico, I should say. Talk through why that makes sense in Mexico.

No, I think I commented in the past, right now the World Cup prices are a bit too high for us.

Speaker #5: And then if there's any other product expansion or capabilities you plan on adding.

Speaker #1: Yeah. So poker is a nice product. It will take us more time to push it, let's call it exclusively. Right now, it gives more benefits to our customers.

So in terms of spread, we will continue to spread the or make the efforts the same as we did every year, and maybe just spreading it more evenly. Because usually during the summer, we are reducing the, the advertising spend. So here we will continue to spend Around the World Cup, but with no increase doing those months.

Speaker #1: We are about, I think, to launch at least a quiet launch bingo. To have more products into our mix in Mexico. So in that sense, we have nice products coming up.

Aviv: Hopefully, with some upside from the World Cup, 'cause we will continue to invest around the World Cup in the summer, which we're usually lowering our investment there. I think this is the tactical way that we see this year.

Aviv Sher: Hopefully, with some upside from the World Cup, 'cause we will continue to invest around the World Cup in the summer, which we're usually lowering our investment there. I think this is the tactical way that we see this year.

Speaker #1: But there are more supportive. I don't think they will become a main product. But more supportive of our, let's call it, game portfolio. To our to keep retention and to keep the players happy with more kind of products.

No, no increase relatively to other months, right? So I think, in terms of cadence, we will be more or less. Will spread it more or less the same as we did in the previous year? Uh hopefully with some upside from the World Cup because we will continue to invest Around the World Cup and the summer which we usually lowering our investment there. And

So I think, I think this is the, this is the Tactical way that we see this year.

Ryan Sigdahl: Last question for me. You launched a poker app. I guess or in Mexico, I should say, talk through why that makes sense in Mexico, and then if there's any other product expansion or capabilities you plan on adding.

Speaker #1: If we see that there is an ROI in any of those products, we will start investing let's call it on a separate line of business, whether it's bingo or poker.

Aviv: Yeah. Poker is a nice product. It will take us more time to push it, let's call it, exclusively. Right now, it gives more benefits to our customers. We are about, I think, to launch, at least a quiet launch bingo, to have more products into our mix in Mexico. In that, in that sense, we have nice products coming up, but they are more supportive. I don't think they will become a main product, but more supportive of our, let's call it, game portfolio, to our, to keep retention and to keep the players happy with more kind of products.

Aviv Sher: Yeah. Poker is a nice product. It will take us more time to push it, let's call it, exclusively. Right now, it gives more benefits to our customers. We are about, I think, to launch, at least a quiet launch bingo, to have more products into our mix in Mexico. In that, in that sense, we have nice products coming up, but they are more supportive. I don't think they will become a main product, but more supportive of our, let's call it, game portfolio, to our, to keep retention and to keep the players happy with more kind of products.

Last question for me. You launched a poker app? Um I guess talk through. Why the air in Mexico? I should say talk to you. Why? That makes sense in Mexico. Um, and then if there's any other product expansion or capabilities, you plan on adding

Speaker #1: But right now, we launch them as a supportive games. They are doing fine at the moment. Nothing exciting over there.

yes, so okay, okay, reason I say

Product.

Speaker #5: Thanks, Aviv. Good luck, guys.

It will take a small time to push it, let's call it exclusively right now. It gives more benefits to our customers.

Speaker #1: Thank you.

Speaker #3: As a reminder, if you would like to ask a question, please raise your hands now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute.

We are about, I think to launch at least a quiet lunch, Bingo to have more products into our mix in Mexico.

Speaker #3: Please stand by while we compile the Q&A roster. There are no further questions at this time. I will now turn the call back to Guillermo Lancha, Director of Investor Relations and Communications, for closing remarks.

So in that time, in that sense we have a nice products coming up.

But there are more supportive. I don't think they will become a main product.

But more supportive of our, let's call it game portfolio.

Aviv: If we see that there is an ROI in any of those products, we will start investing, let's call it on a separate line of business, whether it's bingo or poker. Right now, we launch them as a supportive game, they are doing fine, at the moment, nothing exciting over there.

Aviv Sher: If we see that there is an ROI in any of those products, we will start investing, let's call it on a separate line of business, whether it's bingo or poker. Right now, we launch them as a supportive game, they are doing fine, at the moment, nothing exciting over there.

To our to keep retention and to keep the players happy with more kind of products.

Speaker #1: Thank you. So if there are no further questions, I guess we can leave it here. As usual, if you have any follow-ups, feel free to reach out to either Marcus, Aviv, or myself.

If we see that there is an ROI in any of those products, we will start investing—let's call it on a separate.

Line of business whether it's Bingo poker, but right now we launched them as a supportive games.

Speaker #1: And we will be speaking again with our Q1 26 earnings around mid-May. So thank you, everyone, for joining us today.

Over.

Ryan Sigdahl: Thanks, Aviv. Good luck, guys.

Aviv: Thank you.

Aviv Sher: Thank you.

There. Thanks Aviv. Good luck guys. Thank you.

Operator: As a reminder, if you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. There are no further questions at this time. I will now turn the call back to Guillermo Lancha, Director of Investor Relations and Communications, for closing remarks.

As a reminder, if you would like to ask a question, please, raise your hands. Now, if you have dialed in to today's call, please press star 9, to raise your hand, and star 6 to unmute please stand by while we compare the Q&A roster.

Guillermo Lancha: Thank you. If there are no further questions, I guess we can leave it here. As usual, if you have any follow-ups, feel free to reach out to either Marcus, Aviv, or myself.

There are no further questions at this time. I want to open a call back to GM wancher, director of investor relations and Communications for closing remarks,

[Company Representative] (Codere Online Luxembourg, S.A.): We will be speaking again with our Q1 2026 earnings around mid-May. Thank you everyone for joining us today.

[Company Representative] (Codere Online Luxembourg): We will be speaking again with our Q1 2026 earnings around mid-May. Thank you everyone for joining us today.

Thank you. Um so if there are no further questions, I guess we can we can leave it here as usual. If you have any follow-ups, feel free to reach out uh to either Marco savior or myself.

And we will be speaking. Again with our q1 26 earnings around midnight. So thank you everyone for joining us today.

Ryan Sigdahl: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

This concludes today's call, thank you for attending. You may now disconnect

Q4 2025 Codere Online Luxembourg SA Earnings Call

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