Codere Online Luxembourg Sa Stock Price, News & Analysis

Codere Online Luxembourg, S.A. (Nasdaq: CDRO / CDROW) is an online gaming company in the gambling industry within the consumer cyclical sector. According to company disclosures, Codere Online focuses on online sports betting and online casino, offering its services through its website and mobile applications. The company positions itself as an online gaming operator with a strong focus on Spain and multiple Latin American markets.

Codere Online operates in what it describes as its core markets of Spain, Mexico, Colombia, Panama and Argentina, including the City of Buenos Aires in Argentina. In these markets, customers can place wagers on sports events at odds determined by Codere Online and access online casino content. The company’s online business is linked to the broader Codere Group, a multinational private gaming group with a long-standing presence in Europe and Latin America.

Relationship with Codere Group and omnichannel presence

Codere Online was launched in 2014 as part of Codere Group, which is described as a multinational group devoted to entertainment and leisure with decades of experience in the private gaming industry. Codere Group maintains a physical gaming and casino presence in several countries in Europe (Spain and Italy) and Latin America (Argentina, Colombia, Mexico, Panama and Uruguay). Company materials state that Codere Online’s digital operations are complemented by Codere Group’s physical footprint in Spain and across Latin America, forming the basis of what the group characterizes as an omnichannel gaming and casino presence.

Through this connection, Codere Online benefits from the Codere brand, which has been recognized in external brand rankings. The company notes that the Codere brand has appeared in a ranking of Spain’s most valuable brands and is the only gaming brand on that list, which underscores the visibility of the brand in the Spanish market. Pursuant to a relationship and license agreement, Codere Group has granted Codere Online a license to use certain “Codere” trademarks.

Business activities and offerings

Company descriptions explain that Codere Online offers online sports betting, where users can place bets on sports events, and online casino, which mirrors the types of games typically found in land-based casinos, gaming halls and gambling establishments. These online casino offerings include slot machines, table games and bingo. The company’s platforms are described as state-of-the-art websites and mobile applications through which users access these services.

Codere Online’s operations are geographically focused. Public information highlights Spain and Mexico as key markets, with additional activity in Colombia, Panama and Argentina. The company has also referenced sponsorships and partnerships in sports, such as its role as a sponsor of football clubs in Mexico, to support brand awareness and engagement with customers in that country.

Public listing and regulatory context

Codere Online is a foreign private issuer that files reports with the U.S. Securities and Exchange Commission (SEC) on Form 20-F and Form 6-K. The company’s securities, including its ordinary shares and warrants, are listed on the Nasdaq Capital Market under the symbols CDRO and CDROW. Company communications have noted that Codere Online completed a public listing process via a merger with DD3 Acquisition Corp. II, which strengthened its capital position and increased its visibility in public markets.

As part of its ongoing reporting obligations, Codere Online furnishes current reports on Form 6-K to provide information such as quarterly financial updates, governance changes, and other corporate developments. The company has also reported on its interactions with Nasdaq listing requirements, including the filing of its annual report and confirmation that its securities remain listed on the Nasdaq Capital Market.

Corporate governance and management developments

Codere Online regularly communicates changes in its governance and leadership structure. Public announcements have described the role of its Board of Directors, the outcome of annual general meetings, and the composition of board committees such as the Compliance Committee. For example, the company has reported the appointment of a chairman of the Compliance Committee with extensive experience in gaming regulation and law, highlighting the importance of compliance and regulatory oversight in its operations.

The company has also disclosed transitions in senior finance leadership, including the decision of a chief financial officer to step down for personal reasons and the subsequent appointment of a new chief financial officer. These changes are documented in both press releases and accompanying Form 6-K filings, which clarify that such transitions are not due to disagreements with the company regarding its operations, policies or practices.

Financial reporting and performance metrics

Codere Online reports its financial results under International Financial Reporting Standards (IFRS) and provides additional non-IFRS metrics such as net gaming revenue and Adjusted EBITDA. Company releases explain that net gaming revenue is derived from revenue figures adjusted by certain accounting items, and that these non-GAAP measures are intended to help investors evaluate operating results and trends. The company emphasizes that these measures should not be considered in isolation and may not be comparable to similar metrics used by other companies.

In its periodic financial updates, Codere Online breaks down net gaming revenue and average monthly active players by geography, typically distinguishing between Spain, Mexico and other markets. These disclosures provide insight into the relative contribution of each market to the company’s overall activity. The company also comments on factors such as currency movements, sports betting margins and customer activity that influence its reported results.

Brand, sponsorships and market presence

Codere Online highlights the importance of brand recognition and sponsorships in its strategy. The company has reported on partnerships with football clubs, including Club de Futbol Monterrey in Mexico, where Codere Online has served as a sponsor of both the men’s and women’s teams. These sponsorships involve the display of the Codere Online logo on team jerseys and collaborative campaigns, activations and fan experiences. The company presents these initiatives as aligned with values such as equity and the development of women’s sport, and as a way to enhance its presence in key markets like Mexico.

In Spain, Codere has been recognized in external brand rankings, which the company cites as evidence of its visibility among Spanish brands. Codere Online has also referenced partnerships with prominent football organizations to support its brand awareness efforts in its core markets.

Risk factors and forward-looking statements

Company communications include extensive cautionary language regarding forward-looking statements. Codere Online notes that statements about future financial performance, strategy, operations, addressable market, and other forward-looking topics are subject to risks and uncertainties. The company lists potential risk factors such as changes in online gaming regulations, data protection requirements, perceptions of the gaming industry, competition, geopolitical events, the ability to obtain or maintain licenses, and the possibility of its securities being delisted from Nasdaq. These risks are further detailed in the company’s SEC filings.

Codere Online emphasizes that forward-looking statements are based on information available at the time of the statement and that it does not undertake to update such statements except as required by law. The company also notes that there may be additional risks not presently known or considered immaterial that could affect actual results.

Use of non-GAAP measures and investor communications

In its financial communications, Codere Online explains the rationale for using non-GAAP measures such as net gaming revenue, Adjusted EBITDA and constant currency information. The company states that these measures provide an additional tool for investors to evaluate operating results and trends, but also acknowledges their inherent limitations. Reconciliations between IFRS measures and non-GAAP measures are included in its financial disclosures.

Codere Online regularly schedules conference calls and webcasts to discuss its quarterly results and provide business updates. Details for accessing these events, along with presentations and press releases, are made available through the company’s channels. The company also participates in investor conferences focused on online gaming, gambling and sports betting, where its management team engages with investors and analysts.