Codere Online Luxembourg NASDAQ: CDRO reported third-quarter revenue growth of 31% and reiterated its full-year outlook, while warning that currency movements and new requirements in Spain could slow growth in the final months of 2026.
Revenue rose to 62.6 million euros, while adjusted EBITDA increased 45% to 4.2 million euros, executives said on the earnings call. Gaming Win, a key operating metric, grew 30% to 67.1 million euros. The figures are preliminary and unaudited.
Chief Financial Officer Marcus Arildsson said the company is confident of reaching the upper part of its full-year Gaming Win outlook of 255 million to 265 million euros. Codere Online also reaffirmed its forecast for adjusted EBITDA of 20 million to 25 million euros.
Mexico growth driven by higher customer spending
Mexico remained the company’s largest market, with third-quarter revenue rising 37% to 32.9 million euros and Gaming Win increasing 39% to 37.2 million euros. Mexico’s adjusted EBITDA was 1.7 million euros, slightly below the prior year, which Arildsson attributed to higher gaming taxes and marketing investment, including the timing of certain provisions and expenses.
Mexican active customers declined 3% year over year as the company focused on customer quality, while spend per active customer rose 43%. At constant currency, Mexico’s Gaming Win grew 26%. Arildsson said the stronger peso had been a meaningful tailwind in 2026 but had given back most of its gains against the euro since the end of the quarter.
In Spain, revenue and Gaming Win each reached 24.8 million euros, up 13%, while adjusted EBITDA rose 24% to 7.2 million euros. Gaming Win across Colombia, Panama and the City of Buenos Aires increased 86% to 5.2 million euros, primarily because of a more favorable tax environment in Colombia, Arildsson said.
Across the business, average monthly spend per active customer rose 24% to 134 euros. The company acquired 91,000 first-time depositors, up 7%, at a quarterly cost per acquisition of 209 euros.
Fourth-quarter headwinds and regulatory changes
Arildsson said Codere Online expects fourth-quarter Gaming Win growth in the single-digit range. The company will be comparing results with a strong fourth quarter last year, and it does not expect to repeat the third quarter’s benefits from the World Cup and favorable exchange rates.
New identification and deposit rules in Spain already apply to new customers and will extend to existing customers in April 2027. Joint deposit limits across operators are due to take effect in March. Executives said the changes could create short-term friction, though Chief Executive Officer Aviv Sher said he was not forecasting a major change from the deposit limits.
Sher said some new anti-money-laundering rules had slowed customer acquisition in Spain, but he expected technology to catch up over the next few months. He said the company’s plans to continue acquiring customers at a similar rate next year had not changed.
In Colombia, a 19% value-added tax on deposits that applied in 2025 could be reinstated during 2027, potentially for the full year, Arildsson said. If that happens, Sher said the company would reduce investment and seek to operate at approximately cash-flow breakeven while maintaining its license. “We will not exit the market,” he said.
Marketing and balance sheet
Codere Online expects full-year marketing spending to be in the high 90-million-euro range, close to 100 million euros, Arildsson said. That estimate includes an approximately 3 million to 4 million euro effect from translating Mexican expenses into euros at a stronger peso exchange rate.
Although the 2027 budget is not complete, Arildsson said the company anticipates a similar absolute level of marketing spending next year, with the expense declining somewhat as a percentage of Gaming Win.
The company ended the quarter with approximately 66 million euros in total cash, including 61 million euros available, and no financial debt. It generated 3 million euros of cash flow during the quarter and 16.4 million euros in the first nine months. Nine-month net income was 11.1 million euros, compared with a 1.7 million euro loss a year earlier.
Codere Online is now presenting Gaming Win in place of Net Gaming Revenue following an SEC staff review of its 2025 annual report. Arildsson said the historical figures and underlying calculation are unchanged; IFRS revenue is now presented separately from Gaming Win.
The company plans to provide its 2027 outlook with full-year results in February. Asked about potential expansion into prediction markets, Sher said the company was examining the opportunity but had nothing concrete to announce.
About Codere Online Luxembourg (NASDAQ:CDRO)
Codere Online Luxembourg S.A. operates online sports betting and casino gaming under the Codere brand. Its offerings include online sportsbooks and casino games, available through websites and mobile platforms. The company was established in 2014 as the online gaming business of Codere Group, an international gaming operator. Codere Online serves customers in Spain and several Latin American markets, including Mexico, Colombia, Panama and Argentina, subject to local regulations and licensing.
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