The potential sale of TikTok’s U.S. operations is making waves across the business and investment community. With an estimated valuation of $40 billion to $50 billion, TikTok represents a significant opportunity and challenge for prospective buyers and investors. ByteDance’s consideration of selling TikTok’s U.S. unit is rooted in geopolitical tensions and national security concerns, making the situation both complex and impactful for markets.
Key Highlights of the Sale Scenario
Valuation and User Base: TikTok boasts a U.S. monthly mobile user base of 115 million, surpassing platforms like Snapchat and Pinterest, but trailing Instagram. This broad user base underpins its projected $50 billion valuation, though geopolitical issues and the absence of its proprietary recommendation algorithm in any sale could weigh on its appeal.
Potential Buyers: Among those reportedly interested are Elon Musk, whose acquisition would likely face intense regulatory scrutiny, and a consortium led by billionaire Frank McCourt and Kevin O’Leary, who estimate a lower bid of $20 billion.
Regulatory and Geopolitical Risks: The Supreme Court’s pending decision on banning TikTok in the U.S. and the Biden administration’s national security concerns pose significant uncertainties. These factors could impact valuations and the terms of any deal.
For investors, TikTok’s potential sale and the broader regulatory environment present both opportunities and risks:
Advertising Revenue Growth: TikTok has quickly become a dominant force in digital advertising. Companies expanding their ad spend on social platforms might find TikTok, under new ownership, a critical avenue for growth. A buyer capable of navigating regulatory concerns could unlock further advertising revenue potential, benefiting both private equity investors and public markets.
Impact on Competitors: Platforms like Instagram, Snapchat, and Pinterest might experience shifts in user engagement and ad revenue depending on the outcome of TikTok’s sale or a potential U.S. ban. Stock prices of these competitors could be directly affected by how TikTok’s future plays out.
Public Market Opportunities: If TikTok’s U.S. operations were to go public under a new owner, investors could gain direct exposure to one of the fastest-growing social media platforms. However, this would depend on resolving regulatory and national security concerns.
Regulatory Oversight: Heightened scrutiny of data privacy and national security may impact other tech companies reliant on foreign ownership or data-driven business models. This could lead to increased regulatory risks across the sector, affecting valuations and investor sentiment.
A forced sale of TikTok would send ripples through the broader market. Media and tech companies may see volatility as they adjust to potential competitive shifts, while private equity firms and institutional investors eye strategic opportunities.
Moreover, any large-scale acquisition of TikTok could spur merger and acquisition (M&A) activity in the tech sector, as companies reconfigure their strategies to align with changing market dynamics.
The fate of TikTok’s U.S. operations holds significant implications for investors, social media companies, and the stock market. Whether ByteDance chooses to sell or the Supreme Court enforces a ban, the outcome will shape the competitive landscape of digital media and advertising. For investors, the situation underscores the importance of monitoring regulatory developments, evaluating sector-specific risks, and being prepared to act on emerging opportunities.
As the story unfolds, it will not only test TikTok’s resilience but also provide valuable lessons for navigating geopolitical and regulatory challenges in today’s interconnected global markets.
Saga Communications, Inc. is a broadcast company whose business is primarily devoted to acquiring, developing and operating radio stations. Saga currently owns or operates broadcast properties in 27 markets, including 79 FM and 33 AM radio stations. Saga’s strategy is to operate top billing radio stations in mid sized markets, defined as markets ranked (by market revenues) from 20 to 200. Saga’s radio stations employ a myriad of programming formats, including Active Rock, Adult Album Alternative, Adult Contemporary, Country, Classic Country, Classic Hits, Classic Rock, Contemporary Hits Radio, News/Talk, Oldies and Urban Contemporary. In operating its stations, Saga concentrates on the development of strong decentralized local management, which is responsible for the day-to-day operations of the stations in their market area and is compensated based on their financial performance as well as other performance factors that are deemed to effect the long-term ability of the stations to achieve financial objectives. Saga began operations in 1986 and became a publicly traded company in December 1992. The stock trades on NASDAQ under the ticker symbol “SGA”.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Recent weak stock performance. The SGA shares are down roughly 24% over the past six months and nearly 50% over the past year to near current levels. The performance is in line with its peer group, which is down approximately 45% over the past year. We believe that investors have thrown the baby out with the bath water, given that SGA has virtually no debt, unlike its highly debt levered peers, and has better revenue and cash flow growth potential.
Increased stake. Given the recent stock performance, Gate City Capital Management, LLC, a micro-cap focused investment firm, announced on January 8 that it nearly doubled its position during December 2024. Gate City Capital Management, LLC now owns 863,845 shares or approximately 13.8% of the total outstanding shares.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Key Points: – Disney to control 70% of combined streaming entity worth over $6 billion – Merger creates 6.2 million subscriber base across North America – Deal settles antitrust litigation and reshapes sports streaming landscape
The streaming TV landscape shifted dramatically today as Disney announced plans to merge its Hulu + Live TV business with sports-focused FuboTV, creating a powerhouse that will reshape how millions of Americans consume live content. The deal, which gives Disney a 70% controlling stake in the combined entity, marks 2025’s first major media consolidation.
The merger creates one of the largest digital pay-TV providers in North America, with over 6.2 million subscribers and projected revenue exceeding $6 billion. Under the agreement, the combined business will operate under the Fubo publicly traded company name, with current Fubo shareholders retaining 30% ownership.
David Gandler, Fubo’s co-founder and CEO, who will lead the new entity, emphasized the strategic benefits of increased scale. The merger provides Fubo with immediate access to $220 million in cash, plus an additional $145 million in committed financing available in January 2026, strengthening its position for future growth and investment.
The deal notably resolves Fubo’s ongoing antitrust litigation with Disney, Fox, and Warner Bros. Discovery regarding the Venu Sports platform. This settlement removes a significant obstacle to the planned sports streaming service and positions the combined company to offer more flexible content packages to consumers.
The merger addresses several key challenges in the streaming landscape. For Fubo, which has struggled with high content costs and subscriber churn, the partnership provides crucial financial stability and enhanced content access, including ESPN+ through new distribution agreements. For Disney, the deal strengthens its position in the increasingly competitive streaming market while expanding its reach in sports content delivery.
Looking ahead, the combined company plans to maintain distinct service offerings. Hulu + Live TV will continue its focus on entertainment-based cable replacement, while Fubo will expand its sports and news offerings. Gandler highlighted the potential for creating “skinnier” bundles tailored to specific consumer preferences, addressing a long-standing market demand for more flexible viewing options.
The market has responded positively to the announcement, with Fubo’s shares surging nearly 250% following the news. The combination is expected to achieve immediate positive cash flow, addressing previous profitability concerns in the streaming sector.
This strategic merger represents a significant evolution in the streaming industry’s maturation, potentially setting the stage for further consolidation as providers seek scale and profitability in an increasingly competitive market. The deal’s success could provide a blueprint for future media partnerships aimed at balancing content costs, subscriber growth, and sustainable business models.
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Asset Sale. On December 30, the company completed the sale of its San Diego Tower sites to K2 Towers for $20 million and entered into tower space leases with the buyer for $1 million annually. We view the sale as a favorable step toward the company’s asset monetization strategy. The proceeds from the sales is expected to be used to pare down debt.
Asset monetization. Prior to the asset sale announcement, management highlighted that it had letters of intent for roughly $60 million in real estate transactions and is still shopping Bounce, a leading Over The Air (OTA) broadcast network. Notably, we believe Bounce could be worth more than $150 million. We believe that a sale of Bounce could be announced in the first half 2025.
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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Digital revenue trends are improving. On December 4, Stu Rosenstein, CFO, presented at NobleCon20 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. A replay of the presentation can be viewed here. Notably, we believe the company’s digital businesses are gaining momentum, and we anticipate an acceleration of revenue growth for Ignite and a swing towards positive growth for Interactive.
Townsquare Interactive posed to turn the corner toward revenue growth. Notably, the company’s Interactive business has been experiencing improving revenue trends and net subscriber growth throughout 2024. Furthermore, we believe the interactive business has turned the corner in Q3 and will swing towards positive revenue growth in Q4.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
NobleCon20. On December 3rd, management presented at NobleCon20 at Florida Atlantic University (FAU) in Boca Raton, Florida, to the investment community. The presentation conducted by Tony Tian, CEO, and Heidy Chow, CFO, highlighted the company’s release roadmap, strategy, and unique offerings. A replay of the presentation can be viewed here.
Release roadmap. There are five free Downloadable Content (DLC) packages that are included in the sale of Ark: Survival Ascended (ASA), three of which have not been released yet. The next DLC is expected in Q4, and two more are expected in 2025. Importantly, as DLC packages included in ASA are released, the company will defer less revenue from ASA sales, which should provide investors with a clearer picture of company operating results.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
RICHMOND, Va.–(BUSINESS WIRE)– Bowlero Corporation (NYSE: BOWL), the world’s leading operator of location-based entertainment, has officially rebranded as Lucky Strike Entertainment. With this transformative shift, the company embarks on a new chapter, expanding its offerings beyond traditional bowling and positioning Lucky Strike Entertainment as a premier destination. As part of this transition, the company’s legal name has been changed to Lucky Strike Entertainment Corporation, and its stock ticker symbol is now NYSE: LUCK.
“This is an extraordinary moment for our company,” said Thomas Shannon, Founder, Chairman, and CEO of Lucky Strike Entertainment. “Today marks the culmination of years of innovation and growth as we officially embrace the Lucky Strike Entertainment name. This rebrand represents our commitment to delivering memorable experiences that bring people together and redefine what location-based entertainment can be.”
About Lucky Strike Entertainment
Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms. With over 360 locations across North America, Lucky Strike Entertainment provides experiential offerings in bowling, amusements, water parks, and family entertainment centers. The company also owns the Professional Bowlers Association, the major league of bowling and a growing media property that boasts millions of fans around the globe. For more information on Lucky Strike Entertainment, please visit ir.luckystrikeent.com.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
NobleCon20. On December 3rd, management presented to the investment community at NobleCon20, held at Florida Atlantic University (FAU) in Boca Raton, Florida. The presentation was conducted by Alexander Karavaev, chief financial officer, and Roman Safiyulin, chief corporate development officer. The duo highlighted the company’s dynamic growth prospects and the prospective swing toward growth in bookings. A replay of the presentation can be viewed by clicking here.
Dynamic business model. The company focuses on live-service games, meaning that the games have a continuous lifespan and are updated on an ongoing basis. This allows for a stable revenue base that grows over time, unlike many gaming companies with a “lumpier” revenue profile that oscillates based on game release schedules.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
NobleCon20. On December 3rd, management presented to the investment community at NobleCon20, held at Florida Atlantic University (FAU) in Boca Raton, Florida. The fireside chat presentation with Jason Combs, Chief Financial Officer, highlighted the company’s strategy regarding Scripps Sports, retransmission revenue, political revenue and debt reduction. A replay of the presentation can be viewed by clicking here.
Favorable sports model. Scripps Sports employs a unique model that offers sports teams wider viewership than the traditional Regional Sports Networks (RSNs) model, which is failing. Notably, the company has local broadcasting rights for the Las Vegas Golden Knights, Florida Panthers, and the Arizona Coyotes. Furthermore, the company has the national broadcast rights for the WNBA, which has seen a significant increase in viewership this season.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile application. Codere currently operates in its core markets of Spain, Italy, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence in the region.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Strong Q3 results. The company reported 20% year-over-year revenue growth in Q3 to €51.7 million. Q3 was also the company’s third consecutive quarter with positive adj. EBITDA generation, which was €1.5 million. Revenue and adj. EBITDA exceeded our estimates of €50.0 million and €0.4 million, respectively.
Exchange rate headwinds in Mexico. Revenue in Mexico grew 27%, year-over-year, despite weakness in the Mexican Peso. Notably, on a constant currency basis, revenue in Mexico was up 43%, as the company continued its focus in the country.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Total revenue was €49.2 mm in Q3 2024, while net gaming revenue1 was €51.7 mm in the period, 20% above Q3 2023.
Mexico revenue was €24.2 mm in Q3 2024, while net gaming revenue was €26.7 mm in the period, 27% above Q3 2023.
Spain revenue (and net gaming revenue) reached €20.9 mm in Q3 2024, 11% above Q3 2023.
Net income excluding the non-cash variation in fair value of public warrants2 was €2.8 mm in 9M 2024 versus a net loss of €2.8 mm in 9M 2023.
Total cash position of €44.0 mm as of September 30, 2024.
Company expects to finish the year in the upper part of both full year 2024 net gaming revenue outlook of €205 – 215 mm and Adj. EBITDA3 outlook of positive €2.5 – 7.5 mm.
Madrid, Spain and Tel Aviv, Israel, November 27, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited4 financial results for the quarter ended September 30, 2024.
Aviv Sher, CEO of Codere Online, commented on the results, “Our Company delivered another quarter of strong results, with net gaming revenue of €51.7 million, representing a 20% increase over the third quarter of 2023. In Mexico, net gaming revenue reached €26.7 million, 27% above the prior year period, despite the significant devaluation of the Mexican peso following the presidential election in June. In constant currency terms, our net gaming revenue in the country would have grown by 43%. Meanwhile, performance in Spain remained strong, with net gaming revenue of €20.9 million in the quarter, 11% above last year.”
Oscar Iglesias, CFO of Codere Online, stated, “Beyond the significant top line growth, we also generated €1.5 million of Adjusted EBITDA and €3.5 million of cash in the quarter. This is now the third consecutive quarter of positive Adjusted EBITDA and brings the year-to-date total to €4.5 million.”
Mr. Iglesias further added, “With regards to our existing outlook for 2024, we expect to finish the year in the upper part of the range with respect to both our net gaming revenue and Adjusted EBITDA guidance.”
Recent Events
Delisting Notice from Nasdaq
On November 12, 2024, the Company received a letter from Nasdaq notifying the Company of Nasdaq’s intention to delist its securities from the Nasdaq Stock Market given the Company had not yet filed its Form 20-F for the year ended December 31, 2023;
On November 18, 2024, the Company formally requested to Nasdaq a hearing to appeal the delisting determination6;
On November 25, 2024, Nasdaq informed the Company that its request for a hearing was accepted and that the hearing has been scheduled for January 16, 2025;
The Company continues to work diligently to complete and file its Form 20-F for 2023 as soon as possible.
Conference Call Information
Codere Online’s management will host a conference call to discuss the results and provide a business update at 8:30 am US Eastern Time today, November 27, 2024. Dial-in details as well as the audio webcast and presentation will be accessible on Codere Online’s website at www.codereonline.com. A recording of the webcast will also be available following the conference call.
About Codere Online
Codere Online refers, collectively, to Codere Online Luxembourg, S.A. and its subsidiaries. Codere Online launched in 2014 as part of the renowned casino operator Codere Group. Codere Online offers online sports betting and online casino through its state-of-the art website and mobile applications and operates in its core markets of Spain, Mexico, Colombia, Panama and Argentina. Codere Online’s online business is complemented by Codere Group’s physical venues, resulting in a leading omnichannel gaming presence in Spain and throughout Latin America.
About Codere Group Codere Group is a multinational group devoted to entertainment and leisure. It is a leading player in the private gaming industry, with four decades of experience and with presence in seven countries in Europe (Spain and Italy) and Latin America (Argentina, Colombia, Mexico, Panama, and Uruguay).
Note on Rounding. Due to decimal rounding, numbers presented throughout this report may not add up precisely to the totals and subtotals provided, and percentages may not precisely reflect the absolute figures.
Forward-Looking Statements Certain statements in this document may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Codere Online Luxembourg, S.A. and its subsidiaries (collectively, “Codere Online”) or Codere Online’s or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this document may include, for example, statements about Codere Online’s financial performance and, in particular, the potential evolution and distribution of its net gaming revenue; any prospective and illustrative financial information; and changes in Codere Online’s strategy, future operations and target addressable market, financial position, estimated revenues and losses, projected costs, prospects and plans as well as timing relating to the upcoming Nasdaq Hearing and the potential delisting of Codere Online’s securities.
These forward-looking statements are based on information available as of the date of this document and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing Codere Online’s or its management team’s views as of any subsequent date, and Codere Online does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
As a result of a number of known and unknown risks and uncertainties, Codere Online’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. There may be additional risks that Codere Online does not presently know or that Codere Online currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Some factors that could cause actual results to differ include (i) changes in applicable laws or regulations, including online gaming, privacy, data use and data protection rules and regulations as well as consumers’ heightened expectations regarding proper safeguarding of their personal information, (ii) the impacts and ongoing uncertainties created by regulatory restrictions, changes in perceptions of the gaming industry, changes in policies and increased competition, and geopolitical events such as war, (iii) the ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities, (iv) the risk of downturns and the possibility of rapid change in the highly competitive industry in which Codere Online operates, (v) the risk that Codere Online and its current and future collaborators are unable to successfully develop and commercialize Codere Online’s services, or experience significant delays in doing so, (vi) the risk that Codere Online may never achieve or sustain profitability, (vii) the risk that Codere Online will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all, (viii) the risk that Codere Online experiences difficulties in managing its growth and expanding operations, (ix) the risk that third-party providers, including the Codere Group, are not able to fully and timely meet their obligations, (x) the risk that the online gaming operations will not provide the expected benefits due to, among other things, the inability to obtain or maintain online gaming licenses in the anticipated time frame or at all, (xi) the risk that Codere Online is unable to secure or protect its intellectual property, (xii) the risk that Codere Online’s securities may be delisted from Nasdaq and (xiii) the possibility that Codere Online may be adversely affected by other political, economic, business, and/or competitive factors. Additional information concerning certain of these and other risk factors is contained in Codere Online’s filings with the U.S. Securities and Exchange Commission (the “SEC”). All subsequent written and oral forward-looking statements concerning Codere Online or other matters and attributable to Codere Online or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.
Financial Information and Non-GAAP Financial Measures Codere Online’s financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), which can differ in certain significant respects from generally accepted accounting principles in the United States of America (“U.S. GAAP”).
This document includes certain financial measures not presented in accordance with U.S. GAAP or IFRS (“non-GAAP”), such as, without limitation, net gaming revenue and Adjusted EBITDA. These non-GAAP financial measures are not measures of financial performance in accordance with U.S. GAAP or IFRS and may exclude items that are significant in understanding and assessing Codere Online’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under U.S. GAAP or IFRS. You should be aware that Codere Online’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. In addition, the audit of Codere Online’s financial statements in accordance with PCAOB standards, may impact how Codere Online currently calculates its non-GAAP financial measures, and we cannot assure you that there would not be differences, and such differences could be material.
Codere Online believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing Codere Online’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of non-GAAP financial measures to their most directly comparable measure under IFRS are included herein.
This document may include certain projections of non-GAAP financial measures. Codere Online is unable to quantify certain amounts that would be required to be included in the most directly comparable U.S. GAAP or IFRS financial measures without unreasonable effort, due to the inherent difficulty and variability of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such comparable measures or such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, ascertained or assessed, which could have a material impact on its future IFRS financial results. Consequently, no disclosure of estimated comparable U.S. GAAP or IFRS measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.
Use of Projections This document contains financial forecasts with respect to Codere Online’s business and projected financial results, including net gaming revenue and adjusted EBITDA. Codere Online’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this document, and accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this document. These projections should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. See “Forward-Looking Statements” above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of Codere Online or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this document should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.
For further information on the limitations and assumptions underlying these projections, please refer to Codere Online’s filings with the SEC.
Preliminary Information This document contains figures, financial metrics, statistics and other information that is preliminary and subject to change (the “Preliminary Information”). The Preliminary Information has not been audited, reviewed, or compiled by any independent registered public accounting firm. This Preliminary Information is subject to ongoing review including, where applicable, by Codere Online’s independent auditors. Accordingly, no independent registered public accounting firm has expressed an opinion or any other form of assurance with respect to the Preliminary Information. During the course of finalizing such Preliminary Information, adjustments to such Preliminary Information presented herein may be identified, which may be material. Codere Online undertakes no obligation to update or revise the Preliminary Information set forth in this document as a result of new information, future events or otherwise, except as otherwise required by law. The Preliminary Information may differ from actual results. Therefore, you should not place undue reliance upon this Preliminary Information. The Preliminary Information is not a comprehensive statement of financial results, and should not be viewed as a substitute for full financial statements prepared in accordance with IFRS. In addition, the Preliminary Information is not necessarily indicative of the results to be achieved in any future period.
No Offer or Solicitation This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities will be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
Industry and Market Data In this document, Codere Online relies on and refers to certain information and statistics obtained from publicly available information and third-party sources, which it believes to be reliable. Codere Online has not independently verified the accuracy or completeness of any such publicly-available and third-party information, does not make any representation as to the accuracy or completeness of such data and does not undertake any obligation to update such data after the date of this document. You are cautioned not to give undue weight to such industry and market data.
Contacts:
Investors and Media Guillermo Lancha Director, Investor Relations and Communications Guillermo.Lancha@codere.com (+34) 628 928 152
1 Net Gaming Revenue is a non-IFRS measure. Please see reconciliation of Net Gaming Revenue to Revenue at the end of the report. 2 Net income excluding the non-cash variation in fair value of public warrants is a non-IFRS measure and reflects a net loss of €3.0 mm (€2.1 mm in 9M 2023) excluding a €5.8 mm loss (€0.7 gain in 9M 2023) from the variation in fair value of public warrants. Figures presented for illustrative purposes and do not include any potential impacts on the provision for corporate income taxes. 3 Adjusted EBITDA outlook is a forward-looking non-IFRS measure. Please see important disclaimers at the end of the report. 4 See “Preliminary Information” below. 5 Average Monthly Active Players include real money (i.e. exclude free bets) sports betting and casino actives. 6 A request for a hearing automatically stays the delisting of the Company’s securities from Nasdaq through the duration of the hearing process. 7 Figures primarily reflect differences in recognition of revenue related to certain partner and affiliate agreements in place in Colombia, VAT impact from entry fees in Mexico and the impact from the application of inflation accounting (IAS 29) in Argentina. 8 Please refer to page 27 of our Q3 2024 Earnings Presentation for further details regarding this reconciliation.
Travelzoo® provides its 30 million members with exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Moving towards enhanced growth. We believe that the company’s strategic focus on developing a subscription model will accelerate revenue and cash flow growth in 2025 and beyond. We anticipate that even a modest 1% penetration of its 30+ million members will accelerate 2025 revenue and cash flow growth to 12% and roughly 15%, respectively.
Providing revenue and cash flow stability. The subscription model is being launched Jan. 1, 2025 and is expected to offer a ballast to the company’s more cyclical advertising driven model. Notably, the company is not expected to abandon its 30 million plus members, but simply migrate a portion of those members to annual subscriptions, largely as those members seek to take advantage of the travel “deals”.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
HOUSTON, Nov. 25, 2024 /PRNewswire/ — Direct Digital Holdings, Inc. (Nasdaq: DRCT) (“Direct Digital Holdings” or the “Company”), a leading advertising and marketing technology platform operating through its companies Colossus Media, LLC (“Colossus SSP”) and Orange 142, LLC (“Orange 142”), today announced that Keith Smith, Co-Founder and President, and Diana Diaz, Chief Financial Officer, will attend NobleCon20 – Noble Capital Markets’ Twentieth Annual Emerging Growth Equity Conference at Florida Atlantic University, Executive Education Complex, in Boca Raton, FL, on Tuesday, December 3, 2024 and Wednesday, December 4, 2024.
Management will be available for 1×1 meetings throughout the conference. For more information, or to schedule a meeting with management, please reach out to your Noble representative.
About Direct Digital Holdings Direct Digital Holdings (Nasdaq: DRCT), owner of operating companies Colossus SSP, Huddled Masses, and Orange 142, brings state-of-the-art sell- and buy-side advertising platforms together under one umbrella company. Direct Digital Holdings’ sell-side platform, Colossus SSP, offers advertisers of all sizes extensive reach within general market and multicultural media properties. The Company’s subsidiaries Huddled Masses and Orange 142 deliver significant ROI for middle market advertisers by providing data-optimized programmatic solutions at scale for businesses in sectors that range from energy to healthcare to travel to financial services. Direct Digital Holdings’ sell- and buy-side solutions generate billions of impressions per month across display, CTV, in-app and other media channels.
