Codere Online Luxembourg, S.A.

Good morning and welcome to Coderre online fourth quarter 2024 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, press star one again, thank you. I would now like to turn the call over to Guillermo Lancha, Head of Investor Relations. Please go ahead.

Thanks, operator, and welcome everyone to Codere Online's earnings call for the fourth quarter of 2024. Today, you will hear from our CEO, Aviv Sher, and CFO, Oscar Iglesias. Before turning the call over to Aviv, 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-IFRS preliminary and unaudited financial metrics, such as net gaming revenue, adjusted EBITDA, and constant currency figures, for which you can find reconciliations or disclaimers in the appendix of the presentation. These non-IFRS financial measures should be considered in addition to and not as a substitute for our IFRS results. Please note that all growth rates discussed during this call are year-on-year comparisons, unless noted otherwise. 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. During this call, we will make forward-looking statements, including those related to our net gaming revenue and adjusted EBITDA outlooks, which are subject to numerous risks and uncertainties, including those discussed in our earnings press release and other documents filed with the SEC, and which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call. Finally, please note that a replay and transcript of this call will be available on our website at coderionline.com, where you can also sign up for our investor email alerts. With that, I will go ahead and pass the call on to Aviv.

Thanks, Guillermo, and thanks to everyone for joining us today. It has been an eventful few months since we spoke at the end of November, so let me provide a brief update so that everyone is up to speed on the latest developments. As you know, our former auditor, Malcolm, unexpectedly resigned in December but we were able to bring Malone Bailey on board as our new auditor before year end. This allowed us not only to hit the ground running with them in the early January, but also to prepare and present credible plan to NASDAQ in our January 16th hearing, which ultimately resulted in a NASDAQ granting us the maximum extension possible until May 12th to file our 23 annual report. While this Nasdaq compliance issue has taken a lot more time and energy than we would have liked, we believe that things are moving in the right direction and currently expect to file our 2023 annual report within the extended deadline. We appreciate your patience and support throughout this process and look forward to both putting this issue behind us as always continuing to deliver for our investors. Moving now into the highlights of the fourth quarter of 2024, on page eight, we delivered 53 million in net gaming revenues. It's 5% above Q4 2023, as in the prior quarter, net gaming revenue was negatively impacted by a weaker Mexican peso. In a constant currency terms, Net gaming revenue would have been 57 million in the fourth quarter, 15% above the prior year period. In terms of product mix, our casino segment continued to increase its contribution with 62% of our total net gaming revenue in the fourth quarter. due to the seasonal decline in sport betting during December, as well as lower sport margin in Mexico throughout the quarter, primarily on the back of unfavorably NFL results. This growth in net gaming revenue was driven by a 6% increase in our number of average monthly active customers, while we were able to maintain an average monthly spend per active customer of around 120 euros. In regard to customer acquisitions, we had 71,000 first-time depositors in the fourth quarter, a sequential uptick versus 67,000 acquired in the third quarter. This increase, together with a small decrease in the level of investment to acquire the customers, resulted in an average CPA in the quarter of 211 euros, the lowest since Q4 2023. Looking forward and notwithstanding that the opportunity to invest in both Spain and Mexico continues to be very attractive. Our board approved a one year share buyback plan for up to $5 million. We believe that the size of this plan is appropriate, given our current cash position and expected cash flow generation, leaving ample room for us to not only continue investing in the business, if and when good opportunities do do so present themselves, but also to support our shares over the coming years. Please note that under this plan, there is no requirement to acquire any specific number of shares and we may terminate the plan at any time. In terms of next steps, we will be sending out conveying notice later today for a shareholder meeting to be held on March 3rd to approve the plan before implementing. With this, I will now turn the call over to Oscar to cover the financial highlights of the quarter and our initial expectations with respect to a full year of 2025. Thanks, Aviv.