Codere Online Luxembourg, S.A.

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Codary 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 speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star 1 on your telephone keypad. Thank you. Mr. Guillermo Lancho, Head of Investor Relations, you may begin your conference.

Thanks, Operator, and welcome everyone to Codere Online's earnings call for the fourth quarter and full year of 2022. Today, you will hear from our CEO, Moshe Edry, and CFO, Oscar Iglesias. Before turning the call over to Moshe, I'd like to remind everyone that during this call, we will be referring to a presentation we uploaded to our website earlier today, which includes non-GAAP financial metrics, such as net gaming revenue or adjusted BDA, for which you can find reconciliations in the appendix of the presentation. Let me also remind you that our accounting information is prepared under IFRS accounting standards, and that throughout this presentation, all monetary figures will be in euro unless expressed otherwise. Finally, please note that a replay and transcript of this call will be available on our website at codereonline.com, where you can also sign up for our investor email alerts. With that, I will go ahead and pass the call on to Moshe.

Thank you, Guillermo, and thank you everyone for joining the call. Starting with the highlights of the quarter on page 7, we have been able to deliver a strong set of results in the fourth quarter, with an impressive 70% net gaming revenue growth versus last year, to nearly $38 million, confirming the acceleration of revenue growth trend that we anticipated when providing our initial outlook for 2022. From a mixed point of view, our full-year revenue was split 50-50 between sports betting and casino games versus higher 56% contribution from sports betting in 2021. We expect that the trend toward increased relative contribution from casino will continue into 2023 as we continue to leverage opportunities to both cross-sell our casino product to sports betting customers, but also to target and acquire higher value customers' casinos. Turning back to the fourth quarter, with a significant growth in the net gaming revenue was driven by 54% increase in our active customer to nearly 142,000. together with a 10% increase in average monthly spend per customer to €88 to €89. This growth in active customer was mainly due to Mexico, where we almost doubled our customer base. In terms of customer acquisition, the World Cup brought a vast global audience and generated better than expected interest in our offering, allowing us to increase first-time deposits to €122,000 in a quarter, an increase of 90% versus the year before. And while we stepped up our marketing spend in a quarter to over 30 million and a versus an average quarterly spend of about 22 million, the 179 euros average cost per new customer in the quarter was below that achieved in the first three quarters of that year. As we close out our first year as a public company, we have achieved better than expected results with a full year NGR of 123 million, which is above a higher end of our guidance. which we said was between 115 to 120 million last quarter. We are particularly proud of our execution in Mexico, where we believe we have both efficiency and effectively deployed marketing spend and seen significant increase in our customer base as a result. Additionally, we have experienced significant growth in Spain, with revenue up more than 20%, despite the limited marketing spend due to regulatory restriction in place. In terms of recent development, we continue to seek several licenses in Argentina, where we see potential to be a magnificent and profitable business. In the province of Cordoba, we expect to begin operation this year. We're also pursuing a license in the province of Buenos Aires, and we have recently participated in a tender process for the province of Mendoza. Finally, we're announcing today a change in leadership at our company. After careful consideration, And for a personal reason, I decided to step down from my role as a CEO and transition into a new role as an executive vice chairman. This decision wasn't made lightly, but I feel that it is the right choice for me at this time. In my new role, I will be focusing on a number of strategic initiatives and otherwise supporting the team where and where it's needed. Aviv Sher will be taking over the CEO. He has been an integral part of the company since we started and has played a key role in our success. Aviv, to Mounoyo, he's worked together with me for over a decade, and on top of the tenure of Kuder Online, he brings over 15 years of experience in the industry and has previously served as a COO of NeoGames and a CEO of Prime Gaming. With Aviv at the helm, I'm confident that we'll continue to drive and reach the highlights. This is an exciting time for the company, and I look forward to working with the team to the new role and supporting Aviv in taking the responsibilities. I also want to take this opportunity to thank the employees for the hard work and dedication over the years. It has been an incredible privilege to lead this organization and to work with such talented and committed team. Likewise, I would like to thank to the board of directors and our chairman for the help and support during the time for my time as a CEO and heading into this transition and looking forward to all closing with our chairman again. Last but not least, I want to express my gratitude to our investors and to their support and confidence in our company. We remain committed to delivering on our promises to generating substantial growth for our shareholders. With that, I'll return over to Oscar to cover the financial highlights of the quarter. Oscar?