Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Adjusted EBITDA was negative 4 million in the fourth quarter, almost $11 million better than in the fourth quarter of 2022, and included a contribution of nearly €8 million from Spain, more than double that of the prior year quarter |
| We all feel encouraged by what we have accomplished over the last couple of years and the potential of this company going forward |
| Mexico also contributed to this improvement with an adjusted EBITDA loss of $2 million versus the negative $8 million in the prior year period |
| And we see the return quite fast or even faster than expected |
| As we continue to focus not only on acquiring casino-first players, given the attractive CPAs and strong player values we see across this segment, but also on crossing sports betting customers over to casino to maximize overall player yield |
| This strong performance was driven by a 16% increase in the number of active customers and a 32% higher spend per active customer |
| Regarding our core markets, we still see a huge opportunity for growth for us and good investment opportunities in terms of media |
| Looking now at our P&L on page 11, the nearly $11 million improvement in adjusted EBITDA on the fourth quarter was driven by the combination of a $12 million improvement in net gaming revenue, together with a reduction of more than $6 million in marketing investment, along with a slower growth relative to revenue in most of our other operating expenses |
| These views further reinforce our conviction about the substantial opportunity that lies ahead in the region, in which Coderre Online is especially well positioned |
| I'm very excited to present our fourth quarter 2023 earnings and discuss another record-setting quarter for our company, which has allowed us to end the year well ahead of our expectations and continue delivering upon our commitment to investors |
| With this, we expect to deliver upon our original commitment to investors to be a profitable company in this now third year after D-SPAC, and are more committed than ever to creating value for our shareholders |
| And this way, we are able to stabilize our revenues across the year |
| As I said, in achieving EBITDA positive and cash flow positive during the year |
| And technologically, it's not always simple to do, but there's also an opportunity for us going forward |
| But as you can see through the revenues, we are growing faster than expected |
| I think we see very good CPAs in terms of the cost of new FTDs that we are bringing in |
| Turning to the Spanish operating and financial metrics, net gaming revenue in the fourth quarter increased 17% versus the prior year, driven by a 15% increase in the number of active customers |
| Turning now to the financial performance for the quarter on page 10, consolidated net gaming revenue grew by 33% to over $50 million |
| So we continue this strategy and continue our focus in those two markets where we see very, very good ROI and continue to make investments there until we reach our targets |
| In Mexico, net gaming revenue was $25 million in the fourth quarter, an increase of 54% year-on-year and 19% sequentially |
| That's where we're seeing strength |
| And while we expect the overall marketing investment in 2024 will largely be in line with 2023, we expect that 2024 will be the year in which we pivot to profitability, generating positive adjusted EBITDA and cash flow on the back of between $185 million and $200 million of net gaming revenue |
| The growth in net gaming revenue was driven by a significant 35% increase in average monthly spend per customer to €120 |
| I think we did something like 25 in Q4 and we're starting to see some of the benefit of that in terms of some strength we're seeing opening the New Year here over the first two months of 2024 |
| This growth was driven primarily by our Mexican business, which grew by 54% to $25 million, together with a 17% growth in Spain to nearly $20 million |
| Moving to Colombia on page 15, net gaming revenue was flat versus the prior year quarter at just over $2 million and up 32% sequentially, despite the 41% decrease in active customers, reflecting the improved quality of our customer acquisitions and, as a result, portfolio of active customers |
| Despite this lower level of overall marketing investment, we were still able to grow revenue by 40% and reduce our adjusted EBITDA losses by almost 80% |
| In terms of customer acquisition, first-time depositors increased on a sequential basis by 17% and our core Spanish and Mexican markets together acquired over 5,000 more FTBs than in Q4 last year, which benefited from higher levels of activity around the World Cup |
| Evidence that the significant investment in brand building and customer acquisition in the first two years post-ESPAC is starting to bear real fruit |
| Our casino business accounted for 57% of our revenue in the quarter, its highest ever quarterly contribution |
| Statement |
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| But we were surprised with results from Formula and UFC that are getting traction |
| At the consolidated level, our active customers dropped slightly to 139,000 due to a mixed effect, with both Spain and Mexico increasing over 15%, but offset by Colombia and lesser extent Argentina markets, which we have been rationalizing the customer portfolio |
| It's also a mixed effect, just given that we've de-emphasized, for example, acquisition over the past year in a market like Colombia, where you're acquiring it at much lower price points |
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