Codere Online shares hold as Q1 revenue tops estimates

On Monday, Codere Online Luxembourg S.A. (NASDAQ:CDRO) shares maintained their Hold rating at Benchmark, following the announcement of their first-quarter financial results for 2025. The online gaming company reported net gaming revenue (NGR) of €57 million, surpassing the consensus estimate of €52.8 million. This figure represents an 8% year-over-year increase, or a 17% rise in constant currency terms, building on the company’s impressive 90.4% gross profit margin. According to InvestingPro data, analysts anticipate continued sales growth this year, though profitability remains a challenge. The company’s Adjusted EBITDA (AEBITDA) for the quarter was €1.8 million, falling short of the expected €2.3 million, as increased spending on marketing and platform investments impacted profitability.

Codere Online’s performance was predominantly driven by its operations in Mexico, which contrasted with a slight decline in Spain and ongoing challenges in Colombia due to regulatory disruptions. The company successfully continued to attract new customers, with 91,000 first-time deposits recorded during the quarter, which is a 21% increase compared to the same period last year. Additionally, the cost of acquiring new customers decreased to €198. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, despite maintaining a strong balance sheet with more cash than debt.

Despite facing foreign exchange headwinds and a lower average spend per user, Codere Online has reaffirmed its guidance for the full year. The company’s resilience in customer acquisition and revenue growth, even amid increased investment and market challenges, reflects its strategic focus on expanding its user base and maintaining market presence in its operational regions. Codere Online’s financial results and their ability to exceed revenue expectations while navigating a complex regulatory and economic environment will continue to be closely monitored by investors and industry analysts. For deeper insights into CDRO’s performance and outlook, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company’s financials, market position, and growth prospects.

In other recent news, Codere Online Luxembourg S.A. reported a modest 2% increase in its first-quarter net gaming revenue, surpassing expectations. However, the company’s adjusted EBITDA did not meet consensus estimates due to investments in user acquisition and technology. Despite these challenges, management remains confident in their revenue and adjusted EBITDA forecasts for the fiscal year 2025. Stifel analysts maintained their Buy rating on Codere Online, keeping the price target steady at $10. The company experienced varied performance across its primary markets, with growth in Mexico attributed to successful user acquisition strategies and a reduction in competition. In Spain, Codere Online faced deceleration due to increased competition and promotional activities. The firm repurchased $0.5 million of its shares, showing financial discipline and confidence in future cash flow. Stifel adjusted its model for Codere Online, slightly increasing the projected NGR for 2025 by 1%, while maintaining the stock’s target price, reflecting confidence in the company’s strategic investments and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.