CDROW · Codere Online Luxembourg, S.A.

Revenue Growth Driven by Mexico and Spain Casino Expansion

Revenue growth was primarily driven by an increase in online casino wagering, particularly from the integration of casino-first players and enhanced customer yield through cross-selling sports betting customers to casino services. This strategic focus on customer lifecycle management contributed to top-line expansion in key markets like Mexico and Spain.

Profitability Squeezed by Rising Costs

Strong Operating Cash Flow and Capital Allocation

Working capital improved significantly, driven by a net reduction in borrowings and an increase in cash and cash equivalents, partially offset by higher trade payables and other current liabilities. This improvement supported operating cash flow, enabling the company to invest in growth initiatives while maintaining liquidity.

Balance Sheet and Liquidity Position

The company maintains a focus on liquidity and compliance frameworks. Management anticipates that ongoing investments in compliance, controls, and financial infrastructure will require continued resources and management attention.

Outlook and Strategic Priorities

Codere Online expects to make selective investments in its technology platform to support more efficient and effective CRM campaigns, which are critical for market position growth. The company also noted that revenue from inactive account write-offs is expected to have limited future impact due to the one-time recognition in 2025. Marketing spend remains model-driven, considering product offerings, channel performance, and customer lifetime value.