Codere Online Reports Financial Results for the Fourth Quarter and Full Year 2025
StockNews.AI · 3 hours
High Materiality8/10
AI Summary
Codere Online announced robust FY 2025 results, achieving record net gaming revenue of €224.1 million. Despite a net loss of €1.8 million, the company projects significant growth in 2026 with expected revenues between €235-245 million, driven by strong demand, especially in Mexico. Healthy cash reserves strengthen its financial position amidst rising operational costs.
Sentiment Rationale
Strong revenue growth and a positive outlook typically correlate with an upward stock price movement, particularly in the gaming sector, which benefits from increased customer engagement.
Trading Thesis
Buy CDRO for potential upside, leveraging growth in revenue and profitability over the next 12 months.
Market-Moving
- Projected gaming revenue growth in 2026 could drive stock up significantly.
- Mexico's performance and upcoming World Cup may further boost user engagement.
- Increased tax rates in Mexico present a potential revenue challenge for CDRO.
- Successful execution of the share buyback may enhance shareholders' value.
Key Facts
- Codere Online reported record net gaming revenue of €224.1 million for FY 2025.
- Net loss for 2025 was €1.8 million compared to a net income of €3.9 million in 2024.
- Fourth quarter revenue reached €60.7 million, up 15% year-over-year.
- 2026 outlook estimates net gaming revenue between €235-245 million and EBITDA of €15-20 million.
- No financial debt reported, with €50 million in cash as of December 31, 2025.
Companies Mentioned
- Codere S.A. (CDRO): Codere Online operates under Codere Group, with significant leverage in Latin markets.
Earnings
This falls under 'Earnings', given that the article discusses financial performance metrics and forecasts. Understanding these metrics is crucial for evaluating the company's growth trajectory and investment potential.