Codere Online Luxembourg, S.A. (NASDAQ:CDRO) Q3 2022 Earnings Conference Call November 16, 2022 8:30 AM ET

Company Participants

Guillermo Lancha - Director, Investor Relations and Communications

Moshe Edree - Chief Executive Officer

Oscar Iglesias - Chief Financial Officer

Conference Call Participants

Jeff Stantial - Stifel

Operator

Good afternoon. My name is Ralph and I'll be your conference operator today. At this time, I would like to welcome everyone to the Codere Online Third Quarter 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. [Operator Instructions] Thank you.

Guillermo Lancha, you may begin your conference.

Guillermo Lancha

Thanks, operator, and welcome everyone to Codere Online’s earnings call for the third quarter of 2022. Today you will hear from our CEO, Moshe Edree and CFO, Oscar Iglesias. Before turning the call over to Moshe, I’d like to remind everyone that during this call we will be referring to a presentation that 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 Codere Online is Luxembourg based and as a European company our accounting information is prepared under IFRS Accounting Standards and our functional currency is the euro. As such throughout this presentation all monetary figures will be in euros unless expressed otherwise.

Finally, please note that a 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 on to over to Moshe.

Moshe Edree

Thanks, Guillermo and thanks everyone for joining the call. For those of you are less familiar with the company, we have a quick overview on Page 6 we jump straight into the highlights of quarter on Page 7. We've been able to deliver a strong set of results in this quarter, in the third quarter with the net gaming growth accelerating significantly to 54% versus last year to nearly €31 million a 5% sequential increase versus the third quarter despite the usualQ3 headwinds from seasonality on the sports betting side of the business.

This growth was the result of both significant increase in average monthly active customers to nearly 104,000 and a 15% increase in average monthly spend per active to €98. Mexico again drove most of this growth in active customer with a 62% increase in the period. In terms of customer acquisition, the strong return of the main football league and other sporting events in the quarter allowed us to increase our first time deposits to €86,000 with increase of 62% versus last year and a significant uplift versus last quarter.