Online gaming operator Codere posts bigger Q2 loss due to unfavorable exchange rates

Reuters
Jul 31
Online gaming operator Codere posts bigger <a href="https://laohu8.com/S/QTWO">Q2</a> loss due to unfavorable exchange rates

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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

EUR 51.40 mln

EUR 54.20 mln (4 Analysts)

Q2 Net Income

Miss

-EUR 2.40 mln

-EUR 25,000 (2 Analysts)

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.)

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