Mexico City, Mexico, June 18, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, is pleased to announce its groundbreaking collaboration with Blip, an AI-first conversational platform, to introduce an unparalleled gaming experience to its Mexican customers. This strategic alliance marks a significant milestone both in the global online gaming sector as well as in Mexico.
As the largest market by revenue for Codere Online, Mexico has been a focal point of growth and investment over the past several years. With a clear commitment to enhancing the gaming experience for its customers, Codere Online has consistently strived to introduce innovative solutions that cater to the evolving needs and preferences of its customers.
The latest venture with Blip underscores Codere Online’s dedication to pioneering advancements within the industry. The introduction of a conversational chatbot based on a leading communications platform, developed by Blip, will offer players new features and functionalities that will take their gaming experience to new heights.
This chatbot will enable Codere Online to launch exciting promotions and seamlessly service customers through an AI-powered, fully automated conversational chatbot integrated into one of the most widely used communications platforms. This cutting-edge technology, developed by Blip, will revolutionize the way players engage with Codere Online’s gaming platform, ensuring swift and personalized interactions.
Commenting on this transformative collaboration, Debbie Guivisdalsky, Codere Online’s Chief Operating Officer, stated: “we are thrilled to join forces with Blip to introduce this chatbot to the Mexican market. This strategic alliance exemplifies our commitment to innovation and customer satisfaction and will be a great tool to connect with our customers in an efficient way.
Mrs. Guivisdalsky further added: “the introduction of this state of the art chatbot represents another milestone in our path to delivering exceptional experiences to our players. Through this collaboration, we expect to provide superior experiences for our customers in Mexico while improving our ability to deploy highly targeted promotional campaigns”.
Jaime Navarro, Executive Director for EMEA & Latin America at Blip, asserted “Codere Online and Blip share a strong entrepreneurial spirit and are all about innovation and business transformation, which is why we could not think of a better fit. We are excited to work together to bring forward a cutting-edge conversational experience to the online gaming community in Mexico”.
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. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.
About Blip Blip is an AI-first platform that offers the best conversational intelligence solutions to help businesses connect with their customers through digital channels and leading messaging apps, such as WhatsApp, Messenger, RCS, Apple and Telegram.
Blip is present in more than 32 countries and has offices in Belo Horizonte and São Paulo in Brazil, Mexico City in Mexico, and Madrid in Spain. The brand has helped around 4,000 companies such as Dell, GM, Coca-Cola, Stellantis, Claro, and others to sell, engage and relate to consumers on digital channels.
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).
Contacts:
Investors and Media Guillermo Lancha Director, Investor Relations and Communications Guillermo.Lancha@codere.com (+34)-628-928-152
Madrid, Spain, June 17, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), today announced that the Codere brand1 has been ranked 85th among the 100 most valuable brands in Brand Finance Spain’s 2024 ranking.
It marks the twelfth time since 2010 that the Codere brand has received this recognition in its home market, alongside global conglomerates such as Santander, Seat, and San Miguel. Most notably, it is the only company in the gaming industry to be included in the ranking.
The recognition is the latest milestone in a strong year for the Company, which has enjoyed strong financial results both across its Spanish and Mexican operations.
Alberto Telias, Chief Marketing Officer of Codere Online, stated: “We are extremely pleased to once again be named in the top 100 most valuable brands in Spain, in what is now the eighth consecutive year. Spain will always be our home market, and retaining our reputation as a key brand in this market despite our growing global footprint makes us very proud.”
Codere Online started operations in Spain in 2014. In the twelve months ended March 31, 2024, the Company generated nearly 80 million euros of net gaming revenue and over 28 million euros of Adj. EBITDA in Spain, further cementing a path to profitability that the Company is seeking to replicate across its high-growth Latin American markets.
***ENDS***
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. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.
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).
Contacts:
Investors and Media Guillermo Lancha Director, Investor Relations and Communications Guillermo.Lancha@codere.com (+34) 628 928 152
1 Pursuant to the terms of a relationship and license agreement, Codere Group granted Codere Online a license to use certain “Codere” trademarks.
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.
Solid Q1 results. The company reported Q1 revenue of €53.0 million, beating our estimate of €45.0 million by 17.8%. Adj. EBITDA in the quarter was positive €1.7 million, which beat our estimate of a loss of €1.0 million. Notably, the company grew revenue by 34% from the comparable prior year quarter.
Momentum in Mexico and Spain. Strong revenue growth in Mexico (+51%) and Spain (+21%) fueled the revenue outperformance. Some significant developments; the company grew its total active customer base by 25% in both markets and it obtained regulatory approval for operations in the province of Mendoza, Argentina. In our view, the company is poised to carry strong revenue momentum through 2024 and should swing toward positive cash flow on a full-year basis.
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.
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.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results. The company reported Q1 revenue of $14.1 million, and adj. EBITDA loss of $1.9 million, both of which were lower than our estimates of $24.0 million and $2.8 million, respectively. Notably, the company deferred $5.5 million of revenue in the quarter, which contributed to the shortfall. We expect revenue deferrals and the technology gap to cause some noise in operating results during 2024.
Technology gap. Importantly, we believe there is a technology gap between ASA and some of the user base’s PC equipment, which dampened sales of the game. We believe the closing of the technology gap could also lead to a more steady sales profile of the game over a longer period of time as users upgrade their hardware and migrate to ASA.
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.
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.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results. The company reported Q1 revenue of $14.1 million, and adj. EBITDA loss of $1.9 million, both of which were lower than our estimates of $24.0 million and $2.8 million, respectively, as illustrated in Figure #1 Results. Importantly, the company deferred $5.5 million of revenue in the quarter, which contributed to the results falling short of expectations. We expect revenue deferrals to be the cause of some noise in operating results during 2024, as the company prepares for the launch of ARK 2.
Deferred revenue recognition. The deferred ASA revenue will be split evenly across five DLCS that are included in the sale of the game and recognized as the DLCs are released. Three of the DLCs included in ASA will be released in 2024 (Q2, Q3, Q4) with the remaining two expected in 2025. Importantly, a portion of the revenue from the sale of ASA are being deferred, but not all of the associated costs are being deferred.
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.
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.
Q1 results. The company reported Q1 revenue of €53.0 million, beating our estimate of €45.0 million by 17.8%. Adj. EBITDA in the quarter was positive €1.7 million, which beat our estimate of a loss of €1.0 million, illustrated in Figure #1 Results. Notably, the company grew revenue by 34% from the prior year period.
Favorable outlook. The company benefitted from strong revenue growth in Mexico and Spain, which were up 51% and 21%, respectively. Additionally, the company grew its total active customer base by 25% in both markets, and obtained regulatory approval in the province of Mendoza, Argentina. In our view, the company is poised to carry strong momentum through 2024 as it swings toward positive cash flow on a full-year basis.
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 €50.4 mm in Q1 2024, while net gaming revenue1 was €53.0 mm in the period, 34% above Q1 2023.
Mexico revenue was €23.8 mm in Q1 2024, while net gaming revenue was €26.6 mm in the period, 51% above Q1 2023.
Spain revenue (and net gaming revenue) reached €22.3 mm in Q1 2024, 21% above Q1 2023.
Net income was €3.4 mm in Q1 2024 versus a net loss of €1.3 mm in Q1 2023.
Total cash position of €38.5 mm as of March 31, 2024.
Increasing full year 2024 net gaming revenue outlook to €195-210 mm and reiterating plan to be Adj. EBITDA and cash flow positive for the full year in 2024.
Madrid, Spain and Tel Aviv, Israel, May 15, 2024 – (GLOBE NEWSWIRE) Codere Online (Nasdaq: CDRO / CDROW, the “Company”), a leading online gaming operator in Spain and Latin America, has released its preliminary unaudited2 financial results for the quarter ended March 31, 2024.
Below are the main financial and operating metrics of the period.
Quarter ended March 31
2023
2024
Chg. %
Net Gaming Revenue (EUR mm)1
Spain
18.4
22.3
21%
Mexico
17.6
26.6
51%
Other
3.5
4.1
17%
Total
39.5
53.0
34%
Avg. Monthly Active Players (000s)3
Spain
40.2
50.0
24%
Mexico
49.6
62.5
26%
Other
34.2
30.6
(11%)
Total
123.9
143.2
16%
Aviv Sher, CEO of Codere Online, commented on the results, “We are off to a strong start in 2024, with net gaming revenue of €53 million in the first quarter, 34% above that of last year and once again our highest ever quarterly figure. Our focus on Mexico and Spain continues to yield impressive results, with net gaming revenue in Mexico growing by 51% in the first quarter to nearly €27 million. In Spain, meanwhile, net gaming revenue grew by 21% to over €22 million. In both markets, our targeted marketing efforts allowed us to grow our active customer base by c. 25% as a result of the acquisition of higher quality customers (i.e. lower churn) but also with an increased spend per active.”
Oscar Iglesias, CFO of Codere Online, stated, “Once again, top line growth exceeded our expectations in the first quarter, with Mexico continuing to put distance on Spain as our largest market by revenue. We are particularly excited, however, to see Mexico now also contributing positive Adjusted EBITDA for the first time. This, together with a strong performance by Spain, allowed us to generate €1.7 million in total Adjusted EBITDA in the first quarter, which represents a significant step towards achieving our full year profitability targets.”
Mr. Iglesias further added, “On the back of this strong performance in the first quarter and based on recent trading activity, we now expect to generate between €195-210 million of net gaming revenue in 2024, and reaffirm that we expect to generate positive Adjusted EBITDA and cash flow for the full year in 2024.”
Recent Events
Launch in Mendoza
We have recently obtained final regulatory authorization and expect to launch operations soon in the Province of Mendoza.
Mendoza is the 5th most populated province in Argentina with over 2 million people.
This launch will further increase our presence in the country, where we started operations in the City of Buenos Aires in December 2021, and continue pursuing a license in the Province of Buenos Aires.
Rayados Renewal
On March 15, 2024, Codere Online agreed to extend its relationship with the Monterrey Rayados Football Club as its Official Betting Partner for the next four seasons.
With this renewal, Codere Online also became the Main Sponsor of the women’s team, Rayadas.
Codere Online expects to continue to deliver on its growth plan in Latin America, relying on this and other sponsorships and local activations.
Board Appointment
On April 9, 2024, the Board of Directors of Codere Online appointed Daniel Valdez as a member of the Board and the Audit Committee.
Mr. Valdez previously served as a member of the Board between the consummation of the business combination in November 2021 and August 2023.
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, May 15, 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.
Reconciliation of Revenue (IFRS) to Net Gaming Revenue (non-IFRS)
Quarter ended March 31
Figures in EUR mm
2023
2024
Chg. %
Total
Revenue
37.6
50.4
34%
(+) Accounting Adjustments4
1.9
2.6
37%
Net Gaming Revenue
39.5
53.0
34%
Spain
Revenue
18.4
22.3
21%
(+) Accounting Adjustments4
–
–
n.m.
Net Gaming Revenue
18.4
22.3
21%
Mexico
Revenue
15.8
23.8
51%
(+) Accounting Adjustments4
1.8
2.7
50%
Net Gaming Revenue
17.6
26.6
51%
Other
Revenue
3.4
4.3
26%
(+) Accounting Adjustments4
0.1
(0.2)
n.m.
Net Gaming Revenue
3.5
4.1
17%
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. Codere currently operates in its core markets of Spain, Mexico, Colombia, Panama and the City of Buenos Aires (Argentina). Codere Online’s online business is complemented by Codere Group’s physical presence in Spain and throughout Latin America, forming the foundation of the leading omnichannel gaming and casino presence.
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.
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, and (xii) 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 See “Preliminary Information” below. 3 Average Monthly Active Players include real money (i.e. exclude free bets) sports betting and casino actives.
4 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.
In an explosive return, the man who inspired the historic GameStop “meme stock” mania in 2021 has re-emerged from a three-year hiatus – sending shockwaves through Wall Street once again.
Keith Gill, known online as the legendary “Roaring Kitty” had been silent across social media since rallying an “ape army” of retail traders to bet big against hedge funds that were shorting GameStop stock. That is, until May 13th, 2024, when he ominously posted a simple image of an intensely focused video gamer to his X account.
The GameStop “Roaring Kitty” Rallying Cry Heard Again It was all the wake-up call the meme stock movement needed. Within hours of Gill’s first post in over 1,000 days, shares of GameStop Corp (GME) were halted for volatility multiple times as they skyrocketed as much as 110%. When the mayhem settled, the video game retailer’s stock closed a staggering 70% higher on the day.
The Roaring Kitty-inspired surge was a flashback to January 2021, when GameStop became the poster child for a new era of disruption on Wall Street. Gill’s passionate YouTube streams advocating for the struggling company had mobilized a horde of online day traders from the Reddit forum r/WallStreetBets.
By piling into GameStop shares and options contracts, these self-dubbed “apes” triggered a cataclysmic short squeeze – forcing institutional investors with massive bearish bets against GME to cover their positions at rapidly escalating prices. Within two weeks, the stock had captured the world’s attention by inexplicably spiking over 2,700% from $17.25 to an intraday peak of $483.
Hedge Fund Decimation and Hollywood Deals Billion-dollar hedge funds like Melvin Capital were decimated by the GameStop short squeeze, requiring emergency cash injections to stay afloat. The historic market event shined a light on the fragility of Wall Street’s short-selling practices and the power of unified retail investors.
Roaring Kitty himself faced intense scrutiny over his role. Gill testified before Congress about his GameStop windfall and was slapped with a class-action lawsuit alleging he misrepresented his expertise. The saga even inspired the 2023 feature film “Dumb Money,” with actor Paul Dano portraying Gill’s journey to meme stock fame.
Can Lightning Strike Twice for Meme Stocks? While the hype around GameStop had cooled off in recent years, Roaring Kitty’s comeback appearance instantly rejuvenated the movement he started. But can retail traders engineer another shocking short squeeze against institutional behemoths?
GameStop’s core business remains on shaky ground against digital downloads and e-commerce juggernauts. In its latest earnings report, the company posted lower revenue and cut jobs to reduce costs, showing its stock may still be disconnected from fundamentals.
However, with Roaring Kitty leading the rallying cry once more, the army of “ape” traders is ready to shake up the establishment all over again. And with nearly 25% of GameStop’s shares still sold short, the conditions may be ripe for another seismic confrontation in the meme stock revolution.
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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.
Solid Q1 results. Q1 Revenue of $561.5 million was modestly below our estimate of $571.0 million by 1.7%. Adj. EBITDA in the quarter of $91.8 million beat our estimate of $82.9 million by 10.7% . Notably, Q1 adj. EBITDA benefited from $15.2 million in high margin Political advertising, which was substantially higher than our estimate of $6.5 million, and from earlier cost reductions.
Raising political guide. Given the strong political advertising in Q1, management increased full year 2024 political advertising revenue guide from a range of $210 million to $250 million to a range of $240 million to $270 million. The very high margin (85% to 90%) Political advertising will allow the company to pare down debt.
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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.
Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .
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.
Revenues trending better than expected. The first quarter revenue “beat” indicates favorable revenue trends at the company, which appears likely to swing toward positive revenue growth in the next few quarters. Revenues are moderating at a fast clip, from down 12.6% in Q3 2023, to down 9.6% in Q4 2023 to down a modest 3.5% in Q1 (which beat our down 4.5% estimate). Q2 revenues are expected to decline a modest 0.5%.
Margins expected to improve. As the company reimagines its business, we expect that cost cutting actions should substantially improve margins in coming quarters. We expect adj. EBITDA margins to increase to the low double digits. As such, we are raising our Q3 and Q4 adj. EBITDA estimates by 32% and 26%, respectively.
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).
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.
Solid Q1 results. The company reported revenue of $99.6 million, modestly beating our estimate of $98.4 million by 1.3%. Adj. EBITDA in the quarter was $17.5 million, beating our estimate of $16.4 million by 6.8%. The quarter benefited from a swing toward growth in digital advertising (up 1.3%) and better than expected core broadcast advertising. Notably, Digital now accounts for 53% of total company revenues and cash flow, at least double that of its peers.
Interactive subs increase in March. The company added net subscribers in March, which continued in April, indicating that this business is on track to return toward revenue growth, likely in Q1 2025. Furthermore, Revenue Per Unit (RPU) for new sales appear to be increasing. We believe that new features such as Customer Relationship Management (CRM), Text and Email marketing, and integration into QuickBooks, all contribute to an enhanced revenue outlook.
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.
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.
Q1 results. The company reported Q1 revenue of $24.7 million, marginally beating our estimate of $24.3 million. Adj. EBITDA in the quarter was $0.2 million, which missed our estimate of $1.7 million. The “miss” was due to extra ordinary expenses including streaming costs, healthcare, wages, and bad debt. Some of these costs are not expected to continue into subsequent quarters.
2024 outlook. We view 2024 as a year of transition for the company, given its increased focus and investment in growing digital and national revenue. Notably, management highlighted that its online news service is expected to have 18 different websites operational by the end of June, and its acquisition of five radio stations located in Lafayette, Indiana is expected to close by June 1.
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.
