Codere Online Luxembourg NASDAQ: CDRO reported record quarterly net gaming revenue and higher profitability for the second quarter of 2026, citing growth in Spain and Mexico, improved conditions in Colombia and Panama, and strong activity surrounding the World Cup.
Chief Executive Officer Aviv Sher said the company generated consolidated net gaming revenue of €69.4 million, up 27% from the second quarter of 2025. The company said the result represented its highest quarterly revenue to date. Casino accounted for 62% of revenue during the period, with sports betting contributing the remaining 38%.
Adjusted EBITDA rose to €5.8 million from €2.3 million a year earlier, while adjusted EBITDA margin expanded to 8.4% from 4.3%. The company characterized its reported figures as preliminary and unaudited.
Customer metrics and World Cup activity
Codere Online said average monthly active customers rose 12% year over year to about 173,000 in the second quarter. Average monthly spend per active customer increased 13% to €134. The company acquired approximately 108,000 first-time depositors, a 37% increase from the prior-year period, while customer acquisition cost declined to €200 from €217.
Sher attributed part of the activity to the World Cup, saying the company acquired nearly 40,000 new customers around the tournament. Excluding Colombia, unique users were approximately 556% above the level seen during the prior World Cup, while stakes reached roughly €63 million, up about 180% from the 2022 tournament. Net gaming revenue more than doubled from the prior World Cup despite what Sher described as generally favorable outcomes for customers.
Management said it did not make a major investment in World Cup broadcasts, which Sher said were expensive. Instead, the company focused marketing spending around the event and benefited from brand awareness built through prior investments. Sher said the approach helped reduce customer acquisition costs during the period.
On the retention of tournament-acquired customers, Sher said it was too early to draw firm conclusions because the World Cup had ended only weeks earlier. He said early trends looked better than expected, and noted that roughly 30% to 40% of new users were also playing iGaming, particularly table games rather than slots.
Spain and Mexico lead revenue growth
Spain generated net gaming revenue of €27.6 million, an increase of €5.5 million, or nearly 25%, from a year earlier. Revenue was also 8% above the first quarter. Chief Financial Officer Marcus Arildsson said the market benefited from customer acquisition, retention and higher player values. He added that Codere Online has been recovering market share in what the company described as a mature and tightly regulated market.
Sher said platform stability and the use of artificial intelligence in technology operations had contributed to better execution in Spain. He also said the company has reinvested some incremental EBITDA into the Spanish market to support customer acquisition. However, he noted that further regulatory changes involving VIP customers and joint deposit limits are expected.
Mexico, the company’s largest market, produced €36.1 million in net gaming revenue, up €7.1 million, or approximately 24% year over year. Management said the gain was driven primarily by higher spending per active customer after efforts to improve customer quality and reduce promotional abuse.
Average active customers in Mexico declined sequentially from the first quarter, which management said reflected intentional database cleanup and the seasonal transition into summer rather than a deterioration in the customer base. Sher said the company expects Mexico to remain a significant growth opportunity, although competition is increasing as new operators enter the market and spend heavily on promotions.
Colombia, Panama and marketing investment
Other markets, including Colombia, Panama and the City of Buenos Aires, generated €5.7 million in quarterly net gaming revenue, more than 50% above the prior-year period. Colombia benefited from the removal of a 19% value-added tax on customer deposits that had been in effect for much of 2025. Arildsson said activity and deposit levels had broadly recovered to levels seen before the deposit tax was introduced.
Management said Colombia still faces an elevated tax burden because the tax is now applied to gross gaming revenue. Sher said the company is focused on customer relationship management and retention in Colombia rather than broad marketing investment, pending greater clarity on the tax environment.
Panama also performed ahead of management’s expectations and recorded its strongest quarter to date, according to Arildsson.
Marketing expense totaled €26.2 million, rising in absolute euros but falling as a proportion of net gaming revenue to 37.7%, from 41.5% a year earlier. Management said it made incremental marketing investments in Spain and Mexico in response to favorable returns. Looking ahead, executives said full-year marketing expenditure could be somewhat higher in nominal terms than 2025, potentially landing between €90 million and €100 million, but should decline as a percentage of revenue.
Raised outlook and capital allocation
Based on second-quarter performance and current business momentum, Codere Online raised its 2026 outlook. The company now expects full-year net gaming revenue of €255 million to €265 million, up from prior guidance of €235 million to €245 million. It raised adjusted EBITDA guidance to €20 million to €25 million from €15 million to €20 million.
- Colombia’s recovery following the removal of the deposit VAT;
- Stronger-than-expected player values and marketing returns in Spain;
- A more favorable competitive environment in Mexico than initially anticipated; and
- A stronger Mexican peso, which management said contributed more than €4 million during the first half.
The company ended the quarter with approximately €63 million in total cash, including €58 million available cash, and no financial debt. It generated €6.9 million in cash flow during the quarter. Codere Online did not repurchase shares in the second quarter, though its repurchase authorization remains in effect through the end of 2026.
Arildsson said the company is evaluating opportunities to deploy cash, particularly through licenses, market entries and potential acquisitions in Latin America as additional jurisdictions develop online gaming regulations. Management said it also continues to view share repurchases as an available capital-allocation option.
About Codere Online Luxembourg (NASDAQ:CDRO)
Codere Online Luxembourg SA is a publicly traded company incorporated under the laws of Luxembourg and listed on the Nasdaq Stock Market under the ticker CDRO. Established in December 2020 as a spin-off of Grupo Codere’s digital operations, Codere Online leverages the heritage and infrastructure of its Spanish parent to deliver a dedicated online gaming and sports betting platform. Headquartered in Luxembourg City, the company operates through locally licensed subsidiaries in multiple jurisdictions.
The company’s core business revolves around an integrated online sportsbook and casino offering.
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