Latest news with #CodereOnline
Associated Press
2 days ago
- Business
- Associated Press
Codere Online Regains Compliance with Nasdaq Listing Requirements
Luxembourg, Grand Duchy of Luxembourg, June 6, 2025 (GLOBE NEWSWIRE) – Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) (the 'Company' or 'Codere Online'), a leading online gaming operator in Spain and Latin America, today announced that it has received formal notification from the Nasdaq Stock Market LLC ('Nasdaq') confirming that the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1) and that the Company is therefore in compliance with the Nasdaq Capital Market's listing requirements. As a result, the Company's securities will continue to be listed and traded on the Nasdaq Capital Market and are no longer subject to a delisting process. This confirmation follows Codere Online's filing of its annual report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission ('SEC') on June 2, 2025. As part of its formal communication, Nasdaq also notified the Company that the hearing requested on May 22nd to review the delisting determination has been cancelled. About Codere Online Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina. Codere Online's online business is complemented by Codere Group's physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence. Forward-Looking Statements Certain statements in this press release may constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company or its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's or its management team's views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Additional information concerning certain of these and other risk factors is contained in Codere Online's filings with the SEC. All subsequent written and oral forward-looking statements concerning Codere Online or other matters attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Contacts: Investors and Media Guillermo Lancha Director, Investor Relations and Communications [email protected] (+34) 628.928.152
Yahoo
2 days ago
- Business
- Yahoo
Codere Online Regains Compliance with Nasdaq Listing Requirements
Luxembourg, Grand Duchy of Luxembourg, June 6, 2025 (GLOBE NEWSWIRE) – Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) (the 'Company' or 'Codere Online'), a leading online gaming operator in Spain and Latin America, today announced that it has received formal notification from the Nasdaq Stock Market LLC ("Nasdaq") confirming that the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1) and that the Company is therefore in compliance with the Nasdaq Capital Market's listing requirements. As a result, the Company's securities will continue to be listed and traded on the Nasdaq Capital Market and are no longer subject to a delisting process. This confirmation follows Codere Online's filing of its annual report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission ("SEC") on June 2, 2025. As part of its formal communication, Nasdaq also notified the Company that the hearing requested on May 22nd to review the delisting determination has been Codere Online Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina. Codere Online's online business is complemented by Codere Group's physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence. Forward-Looking StatementsCertain statements in this press release may constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company or its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's or its management team's views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Additional information concerning certain of these and other risk factors is contained in Codere Online's filings with the SEC. All subsequent written and oral forward-looking statements concerning Codere Online or other matters attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Contacts: Investors and MediaGuillermo Lancha Director, Investor Relations and 628.928.152
Yahoo
6 days ago
- Business
- Yahoo
Codere Online Announces Filing of 2024 Annual Report on Form 20-F
Luxembourg, Grand Duchy of Luxembourg, June 2, 2025 (GLOBE NEWSWIRE) – Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) (the 'Company' or 'Codere Online'), a leading online gaming operator in Spain and Latin America, today announced that it has filed with the U.S. Securities and Exchange Commission ('SEC') its annual report on form 20-F for the year ended December 31, 2024 (the '2024 20-F'). By filing the 2024 20-F, the Company believes it has regained compliance with Nasdaq Listing Rule 5250(c)(1) (the 'Rule'). As a result, the Company believes that the hearing requested on May 22nd to review the delisting determination received on May 16th will no longer be necessary. The Company awaits Nasdaq's formal confirmation that it has evidenced full compliance with the Rule. A copy of the 2024 20-F is available in the SEC Filings section of the Company's website: In order to minimize the environmental impact of its annual report by reducing paper consumption, the Company encourages its shareholders to read it in digital format. However, Company shareholders willing to receive a hard copy of this document, which contains the Company's audited financial statements, may do so, free of charge, upon request addressed to ir@ About Codere Online Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina. Codere Online's online business is complemented by Codere Group's physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence. Forward-Looking StatementsCertain statements in this press release may constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company or its management team's expectations, hopes, beliefs, intentions or strategies regarding the future, including the Company's statements related to the Company's ability to regain compliance with the Rule. These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing the Company's or its management team's views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that the Company does not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Additional information concerning certain of these and other risk factors is contained in Codere Online's filings with the SEC. All subsequent written and oral forward-looking statements concerning Codere Online or other matters attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Contacts: Investors and MediaGuillermo Lancha Director, Investor Relations and 628.928.152
Yahoo
19-05-2025
- Business
- Yahoo
Codere Online presents Rayados' jersey for the FIFA Club World Cup 2025
Codere Online will officially sponsor Club de Fútbol Monterrey at the 2025 Club World Cup. Rayados, Codere Online and Puma present the uniform with which the team will commemorate the club's 80th anniversary. Mexico City/Madrid, May 19, 2025 - (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW), a leading online gaming operator in Spain and Latin America, has launched the commemorative jersey that will accompany Club de Futbol Monterrey at the 2025 Club World Cup. This special edition kit comes as part of the Club's 80th Anniversary celebrations. With this sponsorship, the Codere logo will be displayed exclusively on the front of Monterrey Football Club's jersey during the 32-team tournament. In addition, Codere Online will offer unique and differentiated experiences so all fans can experience the largest-ever Club World Cup in a special way and support the club in its participation in the tournament. As part of the strategic communication efforts for the tournament and the club's 80th anniversary, Codere Online and Rayados will launch an advertising campaign starting today and during the following months, which can be seen across various media Telias, Chief Marketing Officer at Codere Online, said: 'We are very happy and proud to be able to join and continue to support Club de Futbol Monterrey in all its projects. This year marks the 80th anniversary of the club, and we couldn't miss the celebrations of the club with which we have been walking hand in hand for the last four years. 'Their significant growth and results in both Liga MX and international tournaments are what allow us to be here today, announcing this jersey for their participation in the Club World Cup. 'Undoubtedly, Rayados has helped us solidify our presence in the country with now being one of the leading online gaming operators in the market.' Pedro Esquivel, Executive President of Club de Futbol Monterrey, added: 'It is a pleasure for the club to always be able to count on the support of an internationally renowned brand like Codere and, even more, to have them as our sponsor for this important tournament for the club. 'The Club World Cup, in the framework of our 80th anniversary, is undoubtedly a very important international showcase for us, and we are sure it will help us continue to consolidate our growth and achieve our objectives.' NASDAQ Tower (New York)To celebrate the announcement of this special jersey between Codere Online and Club de Futbol Monterrey, and as a demonstration of the mutual appreciation between the two institutions, the Nasdaq Tower, located in Times Square, New York, will glow with an advertisement that will be projected every hour throughout the day Codere Online Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online, launched in 2014 as part of the renowned casino operator Codere Group, offers online sports betting and online casino through its state-of-the art website and mobile applications. Codere Online currently operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina; this online business is complemented by Codere Group's physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence. About Codere GroupCodere Group is a multinational group devoted to entertainment and leisure. It is a leading player in the private gaming industry, with four decades of experience and with presence in seven countries in Europe (Spain and Italy) and Latin America (Argentina, Colombia, Mexico, Panama, and Uruguay). Contacts: Investors and MediaGuillermo LanchaDirector, Investor Relations and 628.928.152Sign in to access your portfolio
Yahoo
17-05-2025
- Business
- Yahoo
Q1 2025 Codere Online Luxembourg SA Earnings Call
Guillermo Lancha; Head of Investor Relation; Codere Online Luxembourg SA Aviv Sher; Chief Executive Officer; Codere Online Luxembourg SA Oscar Iglesias; Chief Financial Officer, Director; Codere Online Luxembourg SA Moshe Edree; Chief Executive Officer, Director; Codere Online Luxembourg SA Operator Thank you for standing by and welcome to the Codere Online first quarter 2025 results conference call. (Operator Instructions) Thank you. I'd now like to turn the call over to Guillermo Lancha, Head of Investor Relations. You may begin. Guillermo Lancha Thanks, operator, and welcome everyone to Codere Online's earnings call for the first quarter of 2025. Today you will hear from our CEO Aviv Sher and Chief Financial Officer Oscar Iglesias. Our executive Vice Chairman, Moshe Edree will also join us in the Q&A section. Before turning the call over to Aviv, I'd like to remind everyone that during this call, we will be ref referring to a presentation we uploaded to our website earlier today, which includes non-IFRS preliminary and unaudited financial metrics such as net gaming revenue, adjusted EBITDA, and constant currency figures for which you can find the reconciliations or disclaimers in the appendix of the presentation. These non-IFRS financial measures should be considered in addition to and not as a substitute for our IFRS results. Please note that all growth rates discussed during this call are year on year comparisons unless noted otherwise. Let me also remind you that our accounting information is prepared under IFRS accounting standards and that throughout this presentation, all monetary figures will be in EUR unless expressed otherwise. During this call, we will make forward-looking statements, including those related to our net gaming revenue and adjusted the outlooks, which are subject to numerous risks and uncertainties, including those discussed in our earnings press release and other documents filed with the SEC and which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call. Finally, please note that a replay and transcript of this call will be available on our website at where you can also sign up for our investor email alerts. With that, I will go ahead and pass the call on to Aviv. Aviv Sher Thanks, Guillermo, and thanks everyone for joining us today. Before we dive into first quarter earnings, let me please provide a quick update on where we stand in regards to our NASDAQ compliance issue. First and foremost, we filed our 2023 annual report on Form-20 on May 1. That is within the extended deadline granted to us by NASDAQ and thereby regain compliance with applicable listing requirements. This was formally confirmed in a letter we received yesterday from NASDAQ. As since since engaging Malon Bailey as our new auditor on December 31, we have been working on both our 2023 and 2024 audits in parallel, but in the back half of April decided to focus most of our efforts on completing the 2023 audit to ensure that we meet that we met NASDAQ deadline for filling our 2023 annual report, which was both the source of our compliance issue and, as you would expect, our top priority. As a consequence, however, we have not yet been able to complete the work on 2024 audit. And as a result, we are not able to file our 2024 annual report by May 15, that is within the 15 day grace period provided. Unlike last year, however, in which NASDAQ first issued a delinquency notice and provided us with the time to submit a plan to regain compliance and given that we are currently under one year mandatory monitoring monitor. Period. We understand that NASDAQ will be sending us a new delisting notice over the coming days, shortly following receipt of the total delist of that delisting notice. We will be appealing this new delisting determination and requesting both a new hearing plan and further stay of any trading suspension. That said, and as already disclosed to the market, we expect to file our 2024 annual report by the end of May. So we would expect to regain compliance with NASDAQ listing requirements ahead of any hearing actually taking place. In short, while we may still have a couple noisy weeks ahead of us, given the communication we are required to make to the market, we expect to finally be putting this issue behind us soon. As always, we appreciate the patience and understanding that all of you have shown us through throughout this process and look forward to getting back to business as usual. Moving now to the highlights of the first quarter of 2025 on page 8, we delivered EUR 57 million in net gaming revenue, 8% above Q1 2024. As in prior two quarters, net gaming revenue was negatively impacted by a weaker Mexican peso. In constant currency terms, net gaming revenue would have been EUR62 million in the first quarter, 17% above prior year period. In terms of product mix, the contribution from our casino segment came in at 61% of our total net gaming revenue in the first quarter due to not only focus have placed on this segment in recent years, but also to a lower sports margin in Mexico. This growth in net gaming revenue was driven by a 13% increase in the number of average monthly active users. While the average monthly spend per active customer dropped 5% to €118. In regards to customer acquisition, we had a very strong quarter with 91001st time depositors, 21% above the 75,000 acquired in the prior year period, and 25% higher than in Q4 2024. This increase resulted in an average CPA. In the quarter of approximately EUR200 making two consecutive quarters of moderation in our CPA level, which are back to the levels we had in 2023. Finally, as announced last hotel, we put in place a one year share buyback plan for up to EUR5 million. That was approved by our shareholder on March 3, through May 2015, we have repurchased around 68,000 shares for approximately EUR50 million under this plan. With this, I will now turn the call over to Oscar to cover the financial highlights of the quarter. Oscar Iglesias Thanks. Turning now to the financial performance for the quarter on page 10, consolidated net gaming revenue grew by 8% to EUR57 million. This was driven primarily by our Mexican business where revenue grew 15% to EUR30 million. In Spain, net gaming revenue was roughly flat versus the prior year period at EUR22 million. Adjusted EBITDA meanwhile was positive EUR1.8 million in the first quarter and included a contribution of EUR5.5 million from our Spanish business and EUR1.8 million from Mexico, it's best performance to date. This marks our fifth consecutive quarter of positive adjusted EBITDA at the consolidated level. Looking now at our P&L on page 11, adjusted EBITDA was in line with the first quarter of 2024, despite the $4 million increase in net gaming revenue due to a higher level of marketing investment in the quarter, together with other investments made in the business and further into future growth. Turning now to the consolidated figures on page 12, the 8% increase in net gaming revenue was driven by a 13% increase in active customers, primarily in Mexico. On a constant currency basis, net gaming revenue would have grown 17% in the quarter instead of the reported 8%. As Aviv mentioned, we had a significant uptick in FTDs which grew 21% to 91,000 in the quarter and were driven mostly by Mexico, where in recent months, we've been testing a number of new customer acquisition channels. Turning to the Spanish operating financial metrics, net gaming revenue in the first quarter was nearly flat at EUR222 million driven by a lower spend per active. On a positive note, we managed to increase the number of active customers by 4% versus the prior year and 7% sequentially, getting back to 52,000 average monthly actives, the level we had prior to the reintroduction of bonuses in the second quarter of 2024. While adapting our promotional activity to this new competitive landscape in Spain has been challenging, we have made significant progress in regards to improving the quality of the customers we acquire, both in terms of player value and retention. In Mexico, net gaming revenue was EUR30.5 million in the first quarter, 15% above the prior year period. The Mexican peso devalued by more than 16% in the first quarter of 2025, resulting in a EUR5 million headwind to our net gaming revenue and even higher impact than the EUR3 million we had in both the third and fourth quarters of 2024. On a constant currency basis, our net gaming revenue in Mexico would have grown 34%. So the underlying growth trend in this market is still very impressive. As in the fourth quarter, the sports betting margin was a bit lower than our target. This time equivalent to about 1% point, which impacted NGR by about EUR1.5 million. As mentioned before, we had a significant increase in average monthly active customers to 82,000, 31% above Q1, 2024 and 19% above the prior quarter, albeit with lower player values than what we had seen previously, but also with lower acquisition costs. Going forward, we will continue to explore and optimize all sources of customer traffic and otherwise continue and otherwise continue to believe that the opportunity to invest and grow in Mexico is still very compelling. On page 15, we are including again the evolution of the Mexican pistol against the EUR, which had been relatively stable throughout the first quarter, but more volatile since April on the back of trade tensions and other uncertainties. When compared to the first quarter of 2024, the Mexican pestle weakened by 6% in the first quarter of 2025. Looking ahead, the exchange rate headwind will continue, but should begin to lessen after the second quarter. As we begin to lap the significant evaluation of this so following federal elections in Mexico in mid 2024. In short, we're expecting a difficult comparison for the second quarter results, but less of an impact thereafter. Turning to the balance sheet on page 16, as of March 31, we had EUR42 million of total cash on the balance sheet, of which approximately EUR37 million was available. In terms of our networking capital position, we ended the quarter with negative EUR18 million, or around 8% of our LTM net gaming revenue, which continues to reflect the longer term trend that we've spoken about of more restrictive trade terms with suppliers. Notwithstanding that we believe that we are currently operating with a normalized level of working capital. Looking at our cash flow on page 17 in the first quarter of 2025, we generated EUR2.2 million of available cash, partially offset by EUR0.9 million negative FXs impact on ending cash balances due to the devaluation of both the Mexican peso and the US dollar on cash we hold in both currencies. Touching briefly on our outlook for 2025 on page 19, we are reiterating our expectation to generate net gaming revenue of between EUR220 million and EUR230 million and adjusted Ibi down the range of EUR10 million to EUR15 million. Despite generating only EUR1.8 million and adjusted EBITDA even down the first quarter, we are confident that our operating an investment plan for the remainder of the year, including around the Club World Cup taking place from mid-June to mid-July, will allow us to meet our full year guidance. That's all from my end. I will now hand it back over to Aviv for closing remarks. Aviv Sher Thanks, Oscar. Before we move to Q&A, I want to thank their online team, as always, for their dedication and hard work in the recent months. As always, thank you to our investors, analysts and market, participants. Oscar Iglesias It's okay. I can just delivering remarks. Am I off mute? Yes. Before moving to Q&A, I want to thank the Codere Online team as always for their dedication and hard work in recent months. As always, thank you to our investors, analysts, and market participants for your support and interest. We look forward to speaking with you again soon. With that said, we'll turn it back to the operator to open the call to Q&A. Operator Thank you. We will now begin the question and answer session. (Operator Instructions) Your first question comes from a line of Jeffrey Stantial from Stifel. Your line is open. Hey, great, good morning guys. Thanks for taking our questions. Starting off, it looks like [CapEx] was down 6% quarter on quarter, even though as you touched on user acquisition was up quite nicely. If you could you just talk about the competitive environment a bit more? That's not really what's driving that. Just what is allowing you to continue to acquire more users at lower cost? Thanks. Aviv Sher Can you hear me? Can you hear me? We can hear you. Aviv Sher Okay. So basically, as we are always testing, new, traffic sources and trying all kind of experiments. We had some good experience on one a good experiment on one of our channel. And we tested it for let's say one quarter more or less. It resulted in reduced CPA and the higher amount of players, those players eventually, in terms of spend per customer where well with, well with a lower value and there are always more sources like that. So we tested that and we didn't find it so compelling. The eventually the supporting of those players to the revenue and the new revenue, and our predicted the future revenue from those customers was not as high as expected. So it resulted a little bit of those numbers to be lower in terms of CPA and higher in terms of amount of FTDs, but eventually in revenue impact, the revenue impact was a little bit low. My assumption is that in the next quarter or so we will be back to our plan with the amount of players that we are requiring and with the values that we are that we already know. Oscar Iglesias Hi Avi, can you hear us now? We got disconnected there for a few seconds. Can you hear us now? Yes, Oscar Iglesias okay, great. Sorry about that That's great. Just to confirm, yeah, we can hear on our end as. Oscar Iglesias Well. Okay. That's helpful. Thank you for that and then just turning to Spain [slatish] net revenue growth in the quarter that's obviously a bit of a deceleration quarter on quarter, both on a year on year and on a two year stack basis. I just want to confirm, Oscar, is that mostly higher competition coming back in the market after, some of the restrictions paired back off or if there's something else driving. And then as a corollary to that, are you hearing anything in terms of efforts to bring back some of those marketing restrictions via more formal legislation this time? Oscar Iglesias Thanks. Yeah, as you point out, the first quarter comparison is because the reintroduction of the welcome bonus happened in April of last year. So this is the last quarter where we have this this difficult comparison with the prior year period. So yes, it's the impact of the new competitive landscape on the reintroduction of the wealth and some other promotional strategies that now are permitted that previously were part of the pro prohibited activities. So yeah, I think that's the primary driver. I can say that even though the first quarter flat or slightly down, we are seeing some positive trends. We've made some changes, especially in the first quarter. Focusing our promotional strategies where it needs to be focused on our higher value customers, and it's showing good results in April and in the first few days of May. It's still a little bit too early to say with conviction, but within what is a more competitive landscape in Spain, I think increasingly we're going to find better ways to compete. And to your second question, there our understanding is that the government continues to pursue avenues to put the restriction back into place that were there pursuant to the original executive decree, but they yet haven't found a way of doing that. So this is various legislative initiatives, one that we thought was closed back in February through a health care law that we thought would go through ultimately didn't, but our understanding is the current government continues to work and it's really requires the cooperation with its coalition partners, it's minority coalition partners to get any legislation passed. So, that obviously would be upside for us. We're not counting on it, at least not in our let's say short in the short medium term we're assuming that the current environment is the one we have, to operate in, but obviously the reintroduction of that restriction on welcome bonuses would be good for us and good for the whole sector. Okay, perfect. And then if I could just squeeze in one more Oscar, I think you talked about average revenue for active, being down on my method is about 5%. Some of that is going to be mixed shift from Spain to Mexico given the lower player values there, but it looks like if you just evaluate each of those individually, average revenue per player was down on a market level. So can you just, expand a bit further on what's driving that? Oscar Iglesias Yeah, I think in Spain it's the issues that we talked about that our existing portfolio, the spend proactive is a bit lower than obviously what it would have been before the reintroduction of the welcome bonus, as well as the lower player values given the competitive, bonusing and promotional environment that we have, the player values for new acquisitions are also lower. So that's the Spain impact. In Mexico, it's a little bit what we discussed and maybe if you've already touched on this, but it's really in, especially in the first quarter. The last month, I think of '24 in the into the first quarter of '25, where we were, testing out some new acquisition channels, those were, with lower acquisition costs, but also, at least initially, what we're seeing is lower player values. So that contributes, let's say, incrementally contributes and brings down the average spend per active, in the period. We don't have enough data points to know. Conclusively whether what we found there again, it's a higher or lower what we what we said customer acquisition cost is neither good nor bad. It's a function of then the strength of the customer, the average customer that you're acquiring and the player values and the revenue that you're expecting to generate over longer terms. So we're only three, four, five months in some cases in, so the verdict is a little, is still out, but that's part of what you're seeing in terms of at a consolidated level, the lower spend per active in the period. That's great thank you for all the color. I'll pass it on. Operator Your next question comes from a line of Michael Kupinski from Noble. Your line is open. Thank you and thanks for taking my questions. I just have a couple here. I was just wondering in terms of your investments, it seems like you're getting still very favorable returns in Mexico. Are there market dynamics that are starting to improve in other markets to where you may step up investment spend, whether it be Argentina or wherever it might be, I just wanted to get your color on other potential markets to that you might invest in? Oscar Iglesias Avi, you want to jump in? Aviv Sher Yeah. So basically we had, we started to see good results in Colombia, and I think everybody knows what happened in Colombia in the past few months with the VAT regime that they introduced, so we had to stop our efforts over there. We do see some improvement in Panama in recent months, so we have some expectations to mitigate some of the issues that we have in Colombia with Panama and probably in the coming months we will see our investment increase a little bit with Mexico in order to reach our targets in terms of new markets or new big investment currently we are. Let's say staying defensive with our business plan, then maybe just to mitigate a little bit with Colombia to see what's going on over there because it's hurting us a little bit and I think going forward to next year with the World Cup, we will have a more aggressive budget to be able to capitalize on this large event and to continue and maintain our position in Mexico. Oscar Iglesias Yeah, I would just add one point, yeah, I'm just going to add one point on Spain that that even though, since April of last year, the unit economics, the player values have weakened directionally in that market, that the unit economics are still very attractive. So, the level of investment that we've made in that market, even. Even at the higher levels this year versus last year are in our minds, still very justified in terms of a return profile of the customers were acquiring. So, it's still a very good market. It just went from a great market to a very good market. Gotcha. And that was kind of leading into my next question in terms of your guidance for the full year. Obviously you're anticipating some sporting events to kind of kick it kickstart that in the back half, but I was just wondering if you were looking at. Just the continuation. I was just wondering in terms of the how you look at the segment of those numbers, would Spain then start to kick in? Mexico can kind of continue to perform as well as it has, and then maybe you start to get a little pick up from some of these other markets to drive the year full year expectations. I just wondering if you can add some color on how geographically you expect to reach your target for the for the year? Oscar Iglesias Yeah, Mike, I think that's fair that that we're expecting a pickup from most markets. I think Colombia is still a TBD in terms of what we do there to impact to mitigate the tax on deposits. But incrementally Panama's performing well and we've made some product changes, some, there's been some new developments there that have helped us make our product more attractive for customers in that market and we're start starting to show results. In Argentina, I think it's less a question of the top line, especially with the lifting of the capital controls, the new whatever it was 15% to 20% step devaluation of the this, so it's a challenge, but we, without the sponsorship since what, whatever would have been end of March, or if end of April, we no longer sponsors of the River Plate Club in Argentina. So that at the EBITDA level where it seems like we have the biggest hill to climb to meet, guidance that's a couple of million of expense that we won't have starting in the second quarter, partially starting in the second quarter, but definitely into the back half of the year. So, I think it's, primarily given the expectations we have for Spain and Mexico, but then on the margin, both in Panama and Argentina we're seeing support for that conviction that we have that we'll make the four year guidance. Gotcha. Well, you got a good start to the year. Congratulations. That's all I have. Thank you. Operator Your next question comes from a line of Ryan Sigdahl from Craig-Hallum. Your line is open. Hey, good day guys. Want to stay on kind of the topic of new market potentially. I it doesn't sound like in the near term, but parent company [Gruppo Correre] just made an acquisition in Italy of an Italian land-based operator. Curious, you guys exited the Italian operations a few years ago. Curious how you think about new markets, in the construct of maybe what your parent company is doing and specifically as it relates to Italy. Moshe Edree Yeah, hi. So, let me take it. It's Moshe here. Hi, how are you? So yeah, look, first and foremost, I think that, in regard to Italy, so it's true. I mean, a few years ago we had the kind of like, an experiment that was, I believe before we went public and we tried to do something, in that market, and mainly based on, our previous, the operational previous, experience in Italy based on the strong, player value. But as a non-brand in Italy, we find it quite hard and difficult to enter to this to this market and therefore we decided to withdraw and especially when it wasn't our core business and not with our own technology and we didn't have, we didn't have a license back then. The reason that now the group decided that they're going for a partnership and a license it's more about the strategy of the group and less of the strategy of the online, our company. We are very focused, as I've been mentioned in the previous question, we are very focused to keep our position in Mexico. We believe that this is our core market. We believe that we have like still a lot of growth potential and it's important that we be focused about. Keeping our, I would say. A market share and especially due to the fact that there's a lot of new comp competitors are trying to get to the market and we better, we better keep the position rather than the, to try to put some effort in other markets. In Mexico, we still benefit from some of, the omni-channel activity with the group, so that's good, but aside of that, we see that, as KPIs we manage to increase the marketing spend and to keep the same ratio between the CPA and the player value. So that's a good sign of potential growth. Then just switching back to Spain specifically appreciate kind of all of the moving pieces there are you willing to comment specifically within your guidance if you expect that market to return to revenue growth for the rest of the year? Oscar Iglesias I mean that's our objective. Yes, if you're talking about year on year growth, yes, we would be expecting to resume growth in Spain. Yes. Aviv Sher The signals that we are getting from the KPIs are, let's not, I can't say back to normal, but positive enough to make us confident with the results that we will deliver. Excellent, thanks guys. Good luck. Oscar Iglesias Great, thanks. Operator Your next question comes from a line of Arthur [Rula] from Three Court. Your line is open. Hey guys, good morning, a couple questions, first would be you mentioned some, I guess additional investments in one cu on the marketing front with those, sort of one time in nature or is this something else that you're doing that's, I guess ongoing? Oscar Iglesias Yeah, I think that's it's a little bit of a mix of, on the margin additional investments that we've made in terms of growing the team personnel as well as on the platform front. There's a number of initiatives, as we operate on the core platform and all jurisdictions other than Mexico and things that we're doing there to increase, stability performance but also give us more functionality. On the product front, especially, payments that's critical in Latin America. So a little bit on that front, I think on the personnel front, the team has grown as well. We're always mindful of the, keeping, personnel expense growth up below. The growth of top line of the business, but there have been some areas that we've had to invest in and some savings we see medium term from greater automation as it relates to certain aspects of our business, customer verification, and some of the other things we do. But today, given the scale and the growth of the business that we've had in the last year or two, there were some areas that we needed to reinforce. So that, that's the type of investment, but nothing major there. It's really on the margin. Aviv Sher I agree. It's a marginal investment. In from a straight marketing perspective, I think last year you guys spent, I think it was like high 80s in a EUR perspective. Yeah, the first quarter was sort of run rating at 95% and change. Would we expect that number to step back down into like the high 80s, especially in light of the devaluation in Mexico, meaning that I guess your EUR. Dollar effectively is going further from a buy perspective there? Aviv Sher Yeah, so you know that we are forecasting a full year, but the spend on each quarter is not divided equally. Usually in the summer we are lowering our marketing investment, so probably we will be more of the same of what we had last year, maybe a little bit higher, of course we are generating more revenues. And we have the, let's call it the constraints of our EBITDA guidance. So within those perimeters which are very small fluctuations. We should spend more or less, as expected, yeah, similar level plus the third quarter usually is a little bit with less investment because of the summer and the lack of sporting events. So it's not a straight line going from first quarter to the fourth in terms of how to look at our marketing investment. Got it. And then the I think I may sort of missed this I guess the river plate sponsorship maybe is like rolling off and you said that might be some a few million or I don't know, a million cost savings in the back half of the year, is that accurate? Oscar Iglesias Correct, yes. And then on, another thing I may miss, did you say that there's like sort of like a negative, sport, outcome in one cue that was like about $1.5 million hit? Was that focused in Spain or Mexico or? Oscar Iglesias A specifically Mexico and it wasn't a major, I think last last quarter it was. It was about 2% points of margin was a little bit more significant, 1% point is within the band of a normal margin, but yes, that's equivalent to about EUR1.5 million of NGR in Mexico. Aviv Sher We saw, and other competitors also reported NFL season was very favorable with a very low margin. It impacted, let's just I can't say the whole industry, but, any sport, betting bookie. That has some focus in the United States is impacted by NFL results during the first quarter. Yeah, no, it's been consistent across the group, I just have two more and then I'll let someone else, jump on the one thing I was confused about is this dynamic with regard to the share repurchase. Thank you for putting it in and thank you for beginning to execute it, but I guess the shareholders have approved a $10 million dollar share repurchase and the board has approved $5 million. Is there a reason sort of like that. Yeah, I haven't not sure that I've seen that dynamic before as to why that was put in place like that. Yeah, I mean, the shareholder what we were trying to do there is the shareholder authorization is a broader authorization. What the board then decides in terms of the execution, the implementation of that broader authorization is can change over time. And initially the board, what the board approved was and up to $5 million US dollar share buyback program. So that's the one that we actually announced the market, but it sits within the broader shareholder authorization. So the board could tomorrow decide to do something different, to do more, to do less. But again, what we try to do with it's similar to the, authorization, of share issuance, right, that the shareholders offer us something broader, and then the board. It has remit to execute in the best interests of all of all shareholders. So today we're operating as a management team. We have marching orders and under a $5 million buyback plan from the board of directors. Got it. My final question, and I will stop. Has there been any progress in This, Argentina license acquisition or is it sort of remain sort of stymied over price of license? Oscar Iglesias Yeah, more the latter, more of the latter. We're still open to open to the opportunity, but nothing that's developed currently. Got it. Okay. Thank you guys very much. Oscar Iglesias Thanks Arthur. Talk soon. Operator And there are no further questions at this time, Guillermo, I turn the call back over to you. Guillermo Lancha Okay. We have no questions coming in through the webcast either. So, unless anybody else would like to ask a question, I guess we can. We can leave it here. We will be speaking again towards the end of July with our Q2 earnings and, anyone, feel free to reach out if you have any follow-ups. Thank you. Operator This concludes today's conference call. Thank you for your participation. You may now disconnect. Sign in to access your portfolio
