Overview

• Codere Online Q2 revenue misses analyst expectations, net gaming revenue up 1%

• Net loss of EUR2.4 mln in Q2, impacted by unfavorable exchange rates

• Co repurchased $0.7 mln of shares under $5 mln buyback plan

Outlook

• Codere Online reiterates 2025 net gaming revenue outlook of EUR220-230 mln

• Company expects 2025 adjusted EBITDA of EUR10-15 mln

• Codere Online sees strong trends in Mexico despite currency devaluation

• Company anticipates meeting revenue targets despite ongoing challenges

Result Drivers

• MEXICO PERFORMANCE - Net gaming revenue in Mexico grew by 23% in local currency despite a 19% devaluation of the peso

• ACTIVE CUSTOMERS - Mexico saw a 36% increase in active customers compared to Q2 2024

• EXCHANGE RATE IMPACT - Net loss widened due to unfavorable exchange rates, contrasting with a gain in H1 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Codere Online Luxembourg SA is $10.00, about 15.7% above its July 30 closing price of $8.43

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNE1SjyKh

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)