Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Abby and I'll be your conference operator today. At this time, I would like to welcome everyone to the Codere Online Fourth Quarter and Full Year 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. you. Thank Instructions] [Operator

Head Relations, Lancha, your may conference. of Guillermo you Investor begin Mr.

Guillermo Lancha

welcome Online’s Today, to the operator, Edree everyone Thanks, and Iglesias. Oscar Codere from CEO, and year and CFO, hear fourth full earnings of will XXXX. you our Moshe quarter for call

such turning over website that presentation metrics I’d of for or non-GAAP we to our to Before today, Revenue like that which everyone financial a remind presentation. the the find referring Net call this to call earlier Adjusted includes you during which appendix we reconciliations Moshe, Gaming to as will be uploaded the in EBITDA, can

will Let IFRS me and presentation that our accounting remind figures unless that this Accounting in otherwise. expressed information be is euros Standards you prepared throughout under monetary also all

a Finally, where at website and our Investor please on this Email sign for transcript codereonline.com available be call up that alerts. replay note will our you also can of

to the I will that, With on go Moshe. and pass call over ahead to

Moshe Edree

Thanks, able Guillermo, quarter we've the everyone X, quarter Starting call. strong XX% confirming Page on of that the providing been the year fourth versus revenue gaming nearly joining XX outlook for growth to initial our highlights million, impressive growth we deliver an the of with revenue with net of results when the a set in and to acceleration for last trend anticipated thanks XXXX.

was year versus mix betting XX/XX a XXXX. higher sports From from revenue sports split contribution in betting of full our casino XX% view, between and games point

to betting casino. value acquire leverage our XXXX target to increased continue opportunities customers, as to but relative continue higher We contribution sports expect also product from into toward cross-sell in that to casino both customers will the we trend and casino

XXX,XXX to to almost gaming back was to nearly goes by doubled our the €XX. per active customer inactive increase base. customer monthly driven increase revenue where net growth due with the €XX was customer quarter customer in to we with in significant average together a spend mainly our Turning XX% a in XX% to fourth This Mexico

customer of XXX,XXX expected year offering, increase interest a Cup a brought increase time versus of deposits global quarter, generated terms our In World XX% allowing an before. audience acquisition, us better first in in the to than in vast the

that stepped the of in And in while about U.S. we to marketing quarterly the per a up average cost quarter spending quarters our the that below span million, XX versus was achieved quarter of customer XX year. first average in over new an a million XXX three

year a was said than our NGR we As which end a close with between to out million, is million the million $XXX achieved company, last higher first as quarter. have public $XXX better guidance, which of year our we expected above result $XXX full we

believe electric of have significant in and Mexico proud base. both execution are our our We where and since deployed efficiency effectively particularly we increase we in marketing customer spend

marketing restriction additionally, As up significant regulatory a than revenue have result, we due XX% growth with to place. in limited despite the in Spain experienced spend more

in Argentina, licenses we in operations build to of this business and we significant where Cordoba begin profitable expect of several continue Province to potential terms development, see In we seek year. recent to the

a a standard participated and promise recently bonus also province we've licensing of pursuing and We are for service, in Mendoza. process the

time. me for wasn't This to lightly, down choice the Executive leadership transitioning and today decision in at the from to personal Vice right our careful we're role reason, at it company. new Finally, role my change After step I I feel made that in Chairman. but a and as is announcing decided a this consideration, for an CEO

taking strategic on over started we a Sher for and teamwork where since Company He in the of the Aviv a role, be initiatives, In with over I'll and be it has needed. supporting focusing my number part with will new success. of the otherwise worked played decade. to and a has together he's our me know role key integral Aviv an been CEO.

And over years as that drive role working will the CEO for previously and in the experience I'm with the I confident the new at team With This responsibilities. brings and continue online Company of reach Aviva forward in helm, exciting a CEO highlight. XX top of the Aviv Prime the taking an and industry, to the he and the their to of time to is of on NeoGames, served supporting tenor look Gaming. of

thank to like heading help our time directors to and chairman and the as for the the I the and organization of looking I to also and committed to has over been and during Likewise, work and support for our want such hard Chairman team. and an to CEO take this the dedication into again. thank incredible with with for to the It work employees privilege this transition years. forward would opportunity time my board to talented this lead closing a

We generating want Last not I our shareholders. in or to our for and substantial but to to growth our my gratitude committed confidence delivering express remain company. support our on to their investor least, promises to

I'll over highlights Oscar? return the to that, the to With financial Oscar for cover quarter.

Oscar Iglesias

Moshe. Thanks

gaming by to to driven fourth the XX than more to revenue net Mexican X, in Spain with a the Turning quarter fourth period higher which well growth XX% million, XX% last million X than the net Page to year. of consolidated XX quarter gaming our over with nearly nearly in business, together Colombia over doubled grew XX in revenue million. performed in million XX% also

throughout in for only existing also because in customers, The expected but new our not realized and the both of than uplift World better a the betting sports quarter, margin the engagement an played because of role Cup important tournament. revenue

the the partially as offset the by Spain, around fourth was in Adjusted in Moshe EBITDA Mexico X EBITDA level the generated Cup in of was negative call. million negative higher World given X.X of planned from line America by expectations quarter, the investment with which quarter. in in million in The $XX. generated the positive EBITDA quarter Latin discussed earlier and mainly our

million For in represented XX% revenue from net up from point revenue of XX our nearly prior more last XX% the XXXX. XX% our Mexico to almost mix million XXX year, From XX% period. view, of XX% the in a contributed while down full than year, gaming Spain increased

Turning investments to loss and with marketing Page other XX together by and taking adjusted content. the in mainly was EBITDA look in in driven million a brief our in investment, platform the increases operating made P&L, quarter the $XX at

and discuss ensure has that can curtailed reduce profitability. or the resources be outlook needed We burn the as discretionary a our to and is XXXX. at cash But financial highly to will Company our adjusted point to later losses spend for marketing reminder, reach any

proactive increased financial the operating significant increase XX% to in Turning and despite increase in market. improvement growth versus is driver business, Spanish net the proactive quarter, lower due in believe to to we the be the year which in spend This prior in in active to the growing X% spend fourth our gaming quarter quarter. part a casino this revenue of customers, in the metrics, will due continue

in with sequentially. year-on-year customers of gaming driven quarter spend an XXX% was revenue per an exceeded higher a increase over Mexico, In active million XX% in together strong by the This performance customer. increase XX% impressive XX and the of number net

which together a the Moving million X a quarter, XX% higher was customer. to increased XX% active per by higher customers of revenue mark. Columbia, in driven Again, number grew spend net gaming the passing with this fourth

XXXX. Turning balance $XX to on approximately $XX approximately as of XXst, utilized cash December the having in had throughout million the sheet, sheet, available we million balance

million. our net of working negative XX In terms we normalized capital a the ended year at level of position,

you variation regarding quarter. On Page the in working have the cash XX, statement and flow capital further details net in the

in cash, generally not better We stronger operating performance, by also ended from the only have U.S. terms year but of the ahead a throughout dollar driven year. of expectations

our it all That's I remarks. now outlook hand will Moshe my to for and Moshe? end, back closing cover XXXX from to

Moshe Edree

what out year investment. was significant set a we deployed revenue throughout doing in public we primary achieve. in focus a our are in marketing XXXX was proceeds significant in growth of increase successful portion to our we in believe which We raised listing which

however, the less generating others. cash of but will we we summit focus begin our in transition shifting by off growth is profitability. such over taking to priority driven surely making XXXX or terms XXXX ones and marketing In flow be our current the the pedal giving This for foot preference in will pedal business, geographies high investment, slowly toward investor with certain

we cash and $XXX year million reduce expect in $XXX that around our gaming our the that, between This will allow flow XXXX revenue. net we are million. to we to we there. XXXX to more half to But expect of to and XX slow to EBITDA sheet will importantly, XX% and a both With loss corner or perhaps in we that resulting turn by XX to get be expect million revenue EBITDA between million the in which us positive, have balance comfortable for us growth

me the remarks stressing into it we'll we're coder we and turning our demonstrates ability task again plan the our quarter deliver strong finish execute in confident profitable a Let to believe fourth performance be growth, of company. online by my year the and of that up our to

said, we'll call the to turn up that Q&A. open to to With back it operator the

Operator

comes [Operator Jeff Instructions] Stifel. line from question first Stantial from the of Your

is open. line Your

Jeff Stantial

closely congratulations looking moving couple of together you these you thank everything working for past Moshe, years and more to forward. forward

two don't we previously $XX would just you on of profitability variance sale million start handful much the function and two last just believe, a Just about Could Italy to on color from help Why million bridge guidance, helping gaming any of earnings. off drivers $XXX here. million, between that is disclosed, a I revenue the is is of more they're The just on? talk the QX midpoint below. more that me questions bit net prioritizing the a pretty $XXX guidance

Oscar Iglesias

year $X Italy, and million on think make was XXXX. to going $X starters, at back it three would the have million say Italy, for have, we apples-to-apples, of for No, just $XXX I that XXX was included just the plans I looking that to million probably prior though to it number

like apples more would the more seen be So, end that But what the range to about I defer think I'll Moshe market. in he's put talk business. little the high we've number of a to the the bit to XXX, out to apples

Moshe Edree

are revenue we I But starting is we province the year. won't other That later of we it the other is earlier be this the Argentina the quarter than part mean, working we province start thought impact in of of third the able the this will of that correct. see from to and it, part year. it's until

only I of coming from that's in So, have like six think decrease of Argentina. And the the majority revenues. we'll months revenues

Jeff Stantial

And then here. just to clear maybe just crystal be that a follow-up on

was in already fully guess any in to guidance. that, I two, fair accounted revenue between your implying those prior impact contemplated variance that coming So say? the marketing from Is you're for reinvestment

Oscar Iglesias

Yes, that's fair I think Jeff.

what come think Argentina online think I we have the if would number, would Argentina be more earlier, XXX but other have we wrapping would some around of I more probably -- come regions that online, would in if and versus some say thought, getting our the regions other and of we have would in year Argentina delays our would getting ago, would what have timing objectives expectations have in launched been been. a let's

statement, your a I said. fair what think just it's

Jeff Stantial

can And kind I that then of there tailwind The QX? is in quantify a squeeze a here. much any how couple was to World during more if of way Cup,

Moshe Edree

Cup think it that That's World very me, industry all was was I true our but everyone. the to better that the brands know from because just can also was tournament. we just can than successful can I can numbers it over I not put a to strong, say although probably that, That's the he

very we strong that quarters. three a first the came last quarter tailwind the to think we I from had

to the So, saw that But and it just the anticipated growth definitely by contribution customer the that think in quarter, but achieve all in it's XXXX, are that not able we year. of we last I per overall beginning supported overall the year. we

World how year? the two me. contributed the last about Cup mean, Specifically the maybe much of I in months Oscars, than better

Oscar Iglesias

fourth significantly greater I in general, that on World a we in planning the heavier, having quarter during Cup were and investment the well, leading a we up to Yes, did. Jeff, always and think

benefiting last in I some is us more we average, It expected more make So, throughout a benefit up the would It XX.X like I though of investment seeing what month are the were half, negative expecting. what the in quarters, were two think the quarter. starting on than XXXX. is than negative. tracking from is fourth still which even bit performance a than that first some have we stronger terms million we and three made here EBITDA we off the a in we that that the little something $XX better little negative what months a little of first that was million was performance, XXXX And otherwise bit, would of bit comment

Jeff Stantial

That's year-end, if or then anything the thus to And real great. noticed you. I around Is that's came have guidance impact Thank no same believe far Okay, you year-to-date? online incremental in any marketing some moving impact? helpful. region, there restrictions correct,

Oscar Iglesias

market? Sorry say that market catch Jeff, you Spain? you're didn't to? I the what referring Do

Jeff Stantial

In Spain, yes.

Oscar Iglesias

Yes, are or you something that to regulation place in here will the gambling it referring is, shortly else? safer be

Jeff Stantial

were I came yes, restrictions up into as earlier coming play there's out there and perhaps think, year, I I one thought that deferred other believe there's the were a well. but this those couple some

Oscar Iglesias

safer month that Spain, we're three half impacts that there'll be number be of that think Yes, legislation a some understand or even that period. probably will I grace regulation, into our we big to there's and will different business enforced mitigate. one next month it, expecting over will on here this that a think immediately, able largely, though I will the the in terms really effect, month gambling a have provisions I in we of the legislation as is that be come But there's is

of to requirements. with to those our we sure period front terms development we this up the comply work our to some of been that provisions balance expecting for a but that we've preparing phasing manage It's the there'll can, that we've with the for be mitigate XX-month comply additional are this systems to be and impact the prepared But making time. in comfortable rules on regulations, to feel on some we that The we business. and to think especially able were new done, of established,

forward. guidance our expectations going be into year would and baked that the for our So for Spain

Jeff Stantial

your if launch, is one of factored in, any get kind are to Okay, implications just timing And to housekeeping specifically to if there? close guidance could I markets great. item, think then which with into And launches market more quick new profitability? either there about for way

Oscar Iglesias

that progress in still two internal although importantly, work province Province we the planning, of first our in have and in are still both Cordoba, and and process the awarded the license we Buenos Aires. of operating. And of probably a regions working license two that the are pre the but issued we've to up both, where Yes, is still most second Province Argentina really a through are been get to additional get

and two partially the plan have our otherwise we are for contributing we those any that numbers So, baked that, additional into markets but have beyond the don't be internal guidance expansion included. XXXX, to would that our

Operator

line from comes Noble. from question next the Your Michael of Kupinski

open. is line Your

Michael Kupinski

Thank you.

that bit couple First I of Can know you you or play of were there, wondering a A could update your I that market? and on maybe legislative about questions. And was all and might XXXX? congratulations issues. on if successful quarter success just thinking XXXX. how you a talk little Brazil terms of into give us but entering because an market that XXXX kind seeing in that some about of

Moshe Edree

it's Moshe. Mike, Hi,

next in the in terms As flow EBITDA Obviously, of next, focus also couple Latin the But I inward, mentioned the the And development in turn are of the positive. legislation any in about market, our XXXX. that difficulties, of, and regulation. I To previous calls, beginning right and there same positive both the brand, XXXX. therefore, definitely think about both in and carefully of now, terms American cash in we the in we in terms substantial market. the the looking the legislation of is as

which what's the and we looking on said market, Having that, core Mexico in We in will brands. remain of the the is market between different Argentina. happening condition Spain, terms do the focusing of

players, able are seeing We ROI moment are to on under not at right but definitely the operating talking big now are that acquire those those brands in that market operating any and the.com they're there they investments. see Dhoni license, the to any, on

not with right it's our something So that now it's agenda.

market a very the a the said focusing partner, But to marketing the core to with in agency looking I us we're that are preferably will marketing. the accelerate local We in something profile or enter year or on next help maybe low very, so market. a as

Michael Kupinski

just of there's for certain restriction you're been lot been off markets in your of companies wondering, your can they've you? And there? of course, a at more kind and a Have some competitive to obviously companies it Any backed I capital was has you us industry of seeing on and markets noticed that competitive through cash. you you that kind burning competition in out beneficial the Are and of landscape? if pull extremely thoughts make give

Moshe Edree

So, Spain, some and tighter the I in we getting of definitely harder see the some tighter is mean, legislation and advertise. to transitions brands,

marketing So, that as William so such that we brands those especially see with Spain spend, Hill reducing on. were international and invested in

some see competitor mean sense. not reduction don't having omni-channel, Mexico, grow. for the our retail brands from In see with see But we see our good if the Caliente local the so you're on other a sense challenges we presence, we challenge marketing to that which I that to of we is keep local investing the without grow without in any brand massively main Caliente that side

in see with harder Colombia, it's more market In we some more landscape changes changes value of the activity. brands the fraudulent do in create that a challenging. It's operating is to that the some player there

to to and build last that brand. try some see market invest we XXXX the So, year in started to that in the

them grow. of Some will

markets, maintaining are that our important. So we not to the the and see market market that that, news share, good think summarize increasing are say that I just doesn't some that in we we share, just to that translate is

Operator

The the Mike Hickey from comes of from question next Your line Benchmark. Instructions] [Operator

open. is line Your

Mike Hickey

taking here. my for guys questions Thanks

Just a few.

If you sort I you about guys of on more here. could, talked focus know profitability

you be Just your and curious balance. to profitable about when expect you're cash thinking how

year-end. ended million you €XX think around I

burned in I 'XX. XX million operations about think in you've cash from

where if you to you're you're to how thinking think flow you you're curious, position, cash to positive, about end capital and on in 'XX cash Just going raise here? going need your up being think

Oscar Iglesias

Yes, in XXXX Moshe and that's, for the for that think that's remarks, Mike, mentioned positive so EBITDA year we're than would is never I corner positive, expecting said Hi, full be 'XX generating different to both positive we flow, in bit the and cash Thanks turning XXXX. where be but positive flow said, what we've as what the little Mike. would a maybe we've to EBITDA cash the be question. being committed prepared that's, so past, really in

a that reflect is versus does bit So balance of and new on pivot toward toward profitability little that growth.

I would in say proxy we're think for terms the in of terms I just In where is year cash that would in expecting we be actually of good would XXXX, of think, cash EBITDA the what end we guidance we the year that a for giving terms burn.

performing on proxy good -- how upfront, where So, that'd the of EBITDA course year, will utilization a you think you the cash then for over be the adjusted be on year. throughout the that's depending and think of

Mike Hickey

just in to through tie and you're working your And shake a then has can potential of Company in forward? that but it if internal at not and transition moving be I going your of going the then that know curious, an how considered Board thought out sounds your sort terms be time search bit? went for Whether transition process all, about you're sale. to your maybe external your as talk just Moshe, you I focusing alternatives sort a sold or a board little the where you've chairman, strategic you guess, of of like business, you the here versus

Moshe Edree

hi. Yes,

in years, we the like, like five five shutdown another those COVID-XX mother's So and could so including yes, on. and after comes and almost years quite look, are the and the industry. the retail like merger that like the And XX of already years tough company's

on team me will have top for, of they the with brought know, me that they position operation. more it's we for lot know. XX a that more the then And working I that confidence and and step team. vice the I for day-to-day of in strategically to So, years Company up time And managerial that, the thought have like more president Aviv you of running

time five a about about, for strategic to the as alliances going the work to I quite comfortable value the Chairman I to next the and and lot strategic that years Oscar research it's for create a trying let So, to assuming same say, required this felt allow That taking more up CEO the are Brazil. deeper it… where are investors. Aviv spoke about with Online of would about step into and we're we and we that Argentina. overview looking to before about the about Codere We time We spoke to at what opportunities myself turn

Operator

I you think out. there? are you Mike, cut still us? Moshe, you Are hearing

Mike Hickey

lost. looks It you. like hearing I'm we

Operator

Yes, think line the I is disconnected.

Mike Hickey

Okay.

Operator

Mike, Moshe why don't reconnects… go you other of onto have then and questions when one

Mike Hickey

you from do and any just and spend? much a of impact us as macro Yes, your here From consumer to objectively challenging, the think and curious reasons macro as be can on the conditions some seeing of particularly, question. us updates given absolutely. give continue players I is view with what you Last you're you're on obviously your business that what any just seeing

Moshe Edree

good question, It's Mike. a

only the half us we especially the will I that the of from acquire the were that we helped be of think year investment, year build last we the that customers in the benefiting were year throughout year. into making, that experience had customers investment not that into and and is that back portfolio this market obviously

across much quality importantly, average, geographies more it's per the period, of we the But have, per I think customer improved. that has all spend active on pretty also

that is or the that crossing then but let's one customers day them from product helps. you focused mixed casino even more because have sports think general that customers, say in are to over I you're customers, of customers when casino first Some

done business were in So, casino the past. we what than doing we have more

was between there the we balance about NGR NGR. casino did for XXXX betting XX/XX and throughout a sports year it think I was

won't I you ever it continue trend disjointed. terribly although will think it get know that

but we first We the than it's customers little a and attractive casino and bit I then them to you sports think potentially more sports XXXX. drive into betting, the the sports to again casino. be to portfolio may do a balanced crossing drive did economics to going unit casino overall need acquiring

But customers throughout these I spends your to a what's increasing, bit our think happening competitors has that it geographies, so portfolio in let's macro macro, the seeing we're in of in is of mindful and our But both we're say doing each question, of the holding were different proactive. of up. spend the, how had habits. we impacted strength what which terms are course, the But and customers of with little far of customers terms consumer consumer our

Operator

[indiscernible]. the Your from question comes next line

Unidentified Analyst

little In guys you of if you'll 'XX, share total us? maybe spend augment with of guide bit what that marketing questions. a budgeting can Couple type the the you if

Oscar Iglesias

jump can I here. in Maybe

a the spend and it'll in materially million with lower we deliver marketing our level marketing that aggregate we investing we total but hesitant versus the or bit to operate be on consistent on especially an in consider still we of consolidated hesitant It total spend, It'll above normally the guidance terms but some basis. set of be what still levels think what But little investment, a than give XXXX. be give specific information, safe a well I marketing a where or specifically to think So out a will relates marketing in to markets but will say not were a was guide investment. it we're operating higher amount had a to XXXX. even to would to or we're of be that, be I as XX maintenance spend. sensitive to lower at so the significant we it's it's on growing plan emerging that It's a that

Unidentified Analyst

or the model throughout And in no around a with of be and you to like years our flat, bit perspective, I larger guess 'XX, going Cup little cetera? share more XQ. cadence Can versus then from the us a are World in et losses shifting going shrinking 'XX in be is light to obviously, the EBITDA

Oscar Iglesias

Yes, at were at earlier it anticipating question. an that's We looking good a question. the

I of over half the of significant. greater EBITDA it's given 'XX. guides as losses to decline say the on I the year. what relates adjusted could be standpoint, than in It'll half. front an larger we'll that safe be they of it for won't our space, from competitors be the course they But think quarter a specific this know be deliver in some the it in that second it thought the gradual to won't fourth they've example,

a over We're first not of half steady But going and we I delivering investment today how wouldn't that -- cadence a be course the the there decline on the our expect course the be things be of the to be sent bigger over losses EBITDA course of in the next four we next would based over would positive in of any second. would and quarters. be year. see year the of that the would year

Unidentified Analyst

then half positive EBITDA would the the And is half first and 'XX that be of for the a more been negative and in giving year or then have full year a turning 'XX? back positive the [indiscernible] thought guidance in EBITDA would positive number

Oscar Iglesias

I comfortable be will the now that positive year. we think we're full only for sharing right

we positive of we XXXX? something as move we over 'XX, about passing would we full XXXX the this the business thinking is greater year into full the and into what are that to the we start quarter that's year. think the for get possibly to through 'XX. specifically, have EBITDA I how on year, course do guiding But idea more visibility expecting So is EBITDA for positive that

Unidentified Analyst

parent to monetization? of in continuing Can business, needs and sort their how you about it the guess, company, going versus versus, fits build of forward some they're I its share at retail how all capital thinking the online side

Oscar Iglesias

do want Moshe, want or that me you you it? to do Yes. do tackle to

Moshe Edree

completely Look, independent vice moment, At the it representative a retails the the and not have could online, around probably company and depend and financially there no, I mean, will they XX% the mother on the operating we on and mother versa. board. holding are of company

the our are what's topical. the overall of we separated running So, business independently in and completely operation happening

the see relationship the the that have side toward get we So, the any them. and services don't service omni-channel to of we into agreements impact the that platform we and

Operator

no further like call would to the There at back turn questions presenters. time. over I the are to this

Guillermo Lancha

you. Thank

a I'll bit could marketing? we little rate. us in questions of already a coming What increase mean, other One few but webcast. I one they're one, discretional. I liquidity? think expenditure have discus a we that touched Do So the you balance have burn besides your of that bit, this year levers understand asking little over upon marketing rate. to have somewhat from more cash a decreasing gives the on sheet is start. run

Oscar Iglesias

Yes. question. That's a good

I stand fundraise the choppy as can over things next markets external or the capital and think are, that I given don't year how today we plan think any two. around

So that's the we're way business. this managing

the on that as on level a XXXX. we is in next reflected we on for in to the the two we've sheet that And I that's for that years. think balance we plan shared cash more the like have And have execute and guidance the obviously, balance that mind maintain or issues of always that to case go unforeseen plan to in forward basis includes the one allow markets. some for cash minimum would sheet

year resources get we we'll positive see externally, of and cash in positive and and flow EBITDA is have there's focus flow the in general think And we the execute and course we but plan. to today the sheet on XXXX. by how markets XXXX. have balance that see 'XX on other need is to The capital if both raise I for goes execute respond EBITDA opportunities as to markets the plan our So, to we a capital plan cash a well sheet balance on

Moshe Edree

Another investments from for can business plans very our cash stock coming to allocation outlook question webcast. core in priority? in M&A What or the considered being or share given we a economic environment initiatives and the any under position expect price, buyback capital as low the

Oscar Iglesias

still It's markets. what on it's said learned inorganic me to see really still focus. it's Yes, do that I Spain. there's you our the the in we Mexico attractive, tackle that core focus think want to I think here really it's you opportunity. we our a that on Moshe, margin. think XXXX, is Moshe want market We The And to? home have. opportunity given is largest the But significant especially as is opportunity And in obviously, we've there's and is continue opportunities, market. in the

there. So focus we're to going stay

Argentina regions the once up see city, decisions terms other economics especially we take are our coming the then the investment terms in or we're unit of emerging in some in, investment in going Argentina. the really in those in as once initially make cautious we is the of capital, that of operating market. see, how outside otherwise to we'll accelerating of, be opportunity, we're and And we And

business we're given it's today, to I inorganic let's But to we're we grow have activities, buybacks priorities, have opportunities, not, organically. say not share fair think we that evaluating other or the say or this any the in

Moshe Edree

Okay.

more. have a few We

updates the any one given think environment? there are rates, economic variations profitability, we you reaching important any at on of What this on discussed? terms the timeframe? In looking turn already are I

Oscar Iglesias

improvements the share a year, we're we I was share, from core don't Moshe, markets I we across rate from that retention just it highly So customer that by rates? market what or in to as retention. trial relates we're last we is portfolio sensitive. mean, standpoint, don't see again, in that half And seeing. especially obviously in that's from say my I the second that, standpoint But would question say churn the standpoint, basis. market this of of our did would Churn KPIs seeing a terms that information

able think work, we business since churn, retention, the a the way and experience. combination, resources, of the product, saying have has focus is matter user that comes all hard team's the all of to especially with customer the do lot service to I been to it another things when it improving which on user,

of some think, standpoint I are in we're we reflected that the So, core improvements follow of internal yes. churn, the and KPIs there has retention that portfolio seeing the been from numbers,

Moshe Edree

the the weight of sports in that a presentation trend Okay. casino. shifting see We to mentioned we from the

higher we that the is it's and than While longer casino the sports. retention know the

that are the think one we that on. things that's focusing I So, of

Guillermo Lancha

point. Good

Next question.

other Are it exclusively? the these going apparently there issues? some media competitors the these were was app volume Or social around to while around Cup, problems. didn't as during the crashed, vehicle they So noise, their been you a World high forward can expect addressed have priority? What due

Moshe Edree

like were So I don't on know was Caliente. we in crashed. calls that But exactly working specifically app what specified previous in platform that they're referring I about, the political the Mexico, again, we that we think

issues Some hosting. to was we of had DDoS third was Playtex attack on parties the due that massive that

was I World So, crashes And of and of they than any our to it quickly. was recovered. that in quite that managed wasn't Other weren't we didn't the Cup. that during think aware see we recover or that, something hand

refer probably the wasn't Caliente, to DDoS attack on platform. they Playtex that on So,

Guillermo Lancha

Final question.

plan competitors? you having versus the active marketing, migrate spending reduction the in confident growing what XXXX, makes retaining Given and them to about customers

Operator

pick anyone Can please?

Oscar Iglesias

continue we customers XXXX. continue to the question the of reduced level we doing spend and Why customers for year? the that active efficiently of of operations practice is maintain of that business base the the Moshe, what course given the confident to to marketing can improve So, grow are acquire and over grow to throughout investment are that we

Moshe Edree

that we And impact are we that in some do to that proposition River channel on customer No, which we with we to to entering omni that I at same obviously don't acquisition, we top-line market side. share need to bigger with the some the market spend, the and the terms have in are much in spend any base, have we Argentina, Plate. But to XXXX, the the strategy already will in improvement with are accelerating that that adjusting capacity think according which time, have revenue. operational sponsorship in the the of and bigger countries of

acquisition, So be spend assume that just we countries obviously, spend retention therefore customer the lifetime acquisition per less, the that our the toward the of we terms based but strategy. customer. that on omni-channel cost the in we per overall And efficient, experience in believe more customer We have. that will will we that believe and will program optimize we'll simplify not per increase

we multiples, less, amount terms sure. definitely that's of acquire will for In of

Guillermo Lancha

on that's or So we on more don't the any phone the webcast. have questions it and

the questions, today. So very out joining to feel thank for will in if to us And to much. you for team. Thank you you everyone further you our free Otherwise any speak have we reach QX May. earnings

Operator

Thank for conference you call. today's attending

now may disconnect. You

Codere Online Luxembourg (CDRO) 28 Feb 232022 Q4 Earnings call transcript