Codere Online Luxembourg, S.A. (NASDAQ:CDRO) Q1 2023 Earnings Conference Call May 11, 2023 8:30 AM ET

Company Participants

Guillermo Lancha – Head-Investor Relations

Aviv Sher – Chief Executive Officer

Oscar Iglesias – Chief Financial Officer

Moshe Edree – Former Chief Executive Officer and Executive Vice Chairman

Conference Call Participants

Pat McCann – Noble Capital Markets

Operator

Hello and welcome to Codere Online First Quarter 2023 Financial Results. All participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. To [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Guillermo Lancha, Head of Investor Relations. Thank you. Please go ahead.

Guillermo Lancha

Thanks, operator, and welcome everyone to Codere Online's earnings call for the first quarter of 2023. Today you will hear from our CEO, Aviv Sher; and CFO, Oscar Iglesias; our Former CEO and Executive Vice Chairman, Moshe Edree, who continues to be involved in the business and is supporting the team on a daily basis, will be participating 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 referring to a presentation we uploaded to our website earlier today, which includes non-GAAP financial metrics such as net gaming revenue, or adjusted EBITDA, for which you can find reconciliations in the appendix of the presentation. 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 euro unless expressed otherwise. Finally, please note that our replay and transcript of this call will be available on our website at codereonline.com where you can also sign up for our Investor Email alerts.

With that, I will go ahead and pass the call onto Aviv.

Aviv Sher

Thank you, Guillermo, and thanks to everyone for joining the call. I'm very happy to be addressing all of you today for the first time from taking over as CEO of the company. In my new role, I'm fully committed to building upon the significant progress made under Moshe's leadership and to drive sustained growth and value for our shareholders in what is now our second year as a public company.

Jumping straight into the highlights of the first quarter of 2023, on Page 7, we have delivered an impressive 55% net gaming revenue growth versus Q1 of 2022 to nearly €40 million. This was also a sequential increase of 5% quarter-on-quarter, which is no small achievement considering the staff comparison with the World Cup in the previous quarter. As we anticipated in our last call, a trend of increased contribution from Casino continued into 2023 with Casino generating 53% of our net gaining revenue this quarter. This was driven by not only progress in our cross selling of the Casino product to our sports betting customers, but also and more importantly, the strong contribution from our acquisition focus on Casino oriented players. This significant growth in net gaming revenue was driven by a 22% increase in our active customer base to nearly 124,000 together with 27% increase in average monthly spend per customer to €106.