Q2 2026 Codere Online Luxembourg SA Earnings Call

July 30, 2026

Operator 2: Hello, everyone. Thank you for joining us, welcome to Codere Online's Q2 2026 results. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications. Guillermo, please go ahead.

Operator: Hello, everyone. Thank you for joining us, welcome to Codere Online's Q2 2026 results. WAfter today's e will host a question and answer session If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications. Guillermo, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Guillermo Lancha, Director of Investor Relations and Communications.

Speaker #1: Guillermo, please go ahead.

Speaker #2: Thanks, operator, and welcome everyone to Codere Online's earnings call for the second quarter of 2026. Today you will hear from our CEO, Aviv Sherr, and CFO, Marcus Arilson.

Guillermo Lancha: Thanks, operator, welcome everyone to Codere Online's earnings call for Q2 2026. Today, you will hear from our CEO, Aviv Sher, and CFO, Marcus Arildsson. Please note that figures reflected in today's presentation are preliminary and unaudited and include certain non-IFRS financial metrics, which should be considered in addition to our IFRS results. Reconciliations and further details are available in the appendix. During this call, we will make forward-looking statements which are subject to risks and uncertainties. While these statements reflect our current expectations, we undertake no obligation to update them after this call. A replay and transcript will be available at codereonline.com, where investors can also sign up for email alerts. With that, I will go ahead and pass the call on to Aviv.

Speaker #2: Please note that figures reflected in today's presentation are preliminary and unedited, and include certain non-IFRS financial metrics, which should be considered in addition to our IFRS results.

Speaker #2: Reconciliations and further details are available in the appendix. During this call, we will make forward-looking statements which are subject to risks and uncertainties, while these statements reflect our current expectations we undertake no obligation to update them after this call.

Speaker #2: A replay and transcript will be available at codereonline.com for investors can also sign up for email alerts. With that, I will go ahead and pass the call on to Aviv.

Speaker #3: Thanks, Guillermo, and thank you all for joining us today. The second quarter was a standout quarter for Codere Online. We delivered our highest quarterly revenue to date, alongside strong profitability and cash generation.

Aviv Sher: Thanks, Guillermo, thank you all for joining us today. Q2 was a standout quarter for Codere Online. We delivered our highest quarterly revenue to date alongside strong profitability and cash generation. Revenue growth accelerated meaningfully versus an already strong Q1, driven by a solid execution in Spain and Mexico and improving conditions in Colombia and Panama, providing us with a solid position and confidence to raise our outlook for the full year. Starting with the highlights for Q2 2026 on page eight, we delivered consolidated net gaming revenue of EUR 69.4 million, representing a 27% increase versus Q2 of last year and a significant sequential acceleration versus Q1. casino accounted for 62% of revenue during the period, while sports betting represented the remaining 38%.

Speaker #3: Revenue growth accelerated meaningfully versus an already strong first quarter, driven by solid execution in Spain and Mexico and improving conditions in Colombia and Panama.

Speaker #3: Providing us with a solid position and confidence to raise our outlook for the full year. Starting with the highlights for the second quarter of 2026 on page 8, we delivered consolidated net gaming revenue of $69.4 million representing a 27% increase versus the second quarter of last year and a significant sequential acceleration versus the first quarter.

Speaker #3: Casino accounted for 62% of revenue during the period, while sports betting represented the remaining 38%. These trends are consistent with recent quarters although the contribution from sport increased slightly due to the World Cup.

Aviv Sher: These trends are consistent with recent quarters, although the contribution from sport increased slightly due to the World Cup. All operating KPIs improved in the quarter, with an average monthly active customer reaching approximately 173,000, up 12% compared to Q2 of last year, and average monthly spend per customer up 13% year over year to EUR 234, reflecting both strong engagement and a higher player value base. On the acquisition side, we acquired around 108,000 first-time depositors during the quarter, nearly 40% more than in prior year quarter. Once again, supported by strong activity around the World Cup, cost per acquisition improved approximately to EUR 200, demonstrating the continued efficiency of our marketing investments. Most importantly, based on strong performance delivered in the quarter and the momentum we continue to see across the business, we are raising our guidance for the full year of 2026.

Speaker #3: All operating KPIs improved in the quarter with an average monthly active customer reaching approximately $173,000, up 12% compared to Q2 of last year and average monthly spend per customer up 13% year over year to $234, reflecting both strong engagement and a higher player value base.

Speaker #3: On the acquisition side, we acquired around $108,000 first-time depositors during the quarter, nearly 40% more than in prior year quarter. Once again, supported by strong activity around the World Cup, cost per acquisition improved approximately to $200, demonstrating the continued efficiency of our marketing investments.

Speaker #3: Most importantly, based on strong performance delivered in the quarter and the momentum we continue to see across the business, we are raising our guidance for the full year of 2026 with now expecting game revenue gaming revenue of between $255 million to $265 million compared with our previous guidance of $235 million to $245 million.

Aviv Sher: We are now expecting gaming revenue of between EUR 255 million to 265 million, compared with our previous guidance of EUR 235 million to 245 million. We are also raising guidance for adjusted EBITDA between EUR 20 million to 25 million compared with our prior outlook of EUR 15 million to 20 million. Markus will cover later the different factors behind our decision to raise guidance. With respect to capital allocation, we did not repurchase any shares during the Q2. As a reminder, our share repurchase authorization remains in place through the end of 2026. We continue to take disciplined approach to capital allocation and believe maintaining a strong balance sheet provides important strategic flexibility as we execute our growth strategy and evaluate opportunities to create shareholder values. Before moving on, I would like to briefly comment on the World Cup, which impacted both our Q2 and Q3 results.

Speaker #3: We are also raising guidance for adjusted EBITDA between $20 million to $25 million compared with our prior outlook of $15 million to $20 million.

Speaker #3: Marcus will cover later the different factors behind our decision to raise guidance. With respect to capital allocation, we did not repurchase any shares during the second quarter.

Speaker #3: As a reminder, our share repurchase authorization remained in place through the end of 2026. We continue to take disciplined approach to capital allocation and believe maintaining a strong balance sheet provides important strategic flexibility as we execute our growth strategy and evaluate opportunities to create shareholder values.

Speaker #3: Before moving on, I would like to briefly comment on the World Cup, which impacted both our Q2 and Q3 results. Overall, performance was outstanding and materially ahead of the 2022 tournament, excluding Colombia, unique users were approximately 56% above the previous World Cup levels, and we acquired nearly $40,000 new customers around the event.

Aviv Sher: Overall, performance was outstanding and materially ahead of the 2022 tournament. Excluding Colombia, unique users were approximately 556% above the previous World Cup levels, and we acquired nearly 40,000 new customers around the event. The stakes reached around EUR 63 million, approximately 180% above the previous tournament, demonstrating the significantly greater scale of the business and the strong engagement of our customers. Net gaming revenue more than doubled compared to the 2022 World Cup, despite generally favorable outcomes for the customers. We believe these results highlight the significant progress Codere Online has made over the last four years in terms of scale, customer engagement, and monetization. With that, I will now hand the call over to Markus to review the financial performance in more detail.

Speaker #3: The stakes reached around $63 million approximately $180% above the previous tournament, demonstrating the significantly greater scale of the business and the strong engagement of our customers.

Speaker #3: Net gaming revenue more than doubled compared to the 2022 World Cup, despite generally favorable outcomes for customers. We believe these results highlight the significant progress Codere Online has made over the last four years in terms of scale, customer engagement, and monetization.

Speaker #3: With that, I will now hand the call over to Marcus to review the financial performance in more detail.

Speaker #4: Hello everyone. Turning to slide 10, you can see our consolidated net gaming revenue and adjusted EBITDA performance by country for the second quarter of 2026.

Marcus Arildsson: Hello, everyone. Turning to slide 10, you can see our consolidated Net gaming revenue and adjusted EBITDA performance by country for the Q2 of 2026. Starting with Net gaming revenue, we generated EUR 69.4 million during the quarter, representing growth of 27% compared to the Q2 of 2025. Both Spain and Mexico delivered excellent performances and were the primary drivers of growth. In Spain, Net gaming revenue increased by EUR 5.5 million year over year to EUR 27.6 million, representing growth of nearly 25%. The market continues to perform exceptionally well and reflects both healthy customer acquisition and strong player engagement. In Mexico, Net gaming revenue increased by EUR 7.1 million to EUR 36.1 million, representing growth of approximately 24% versus the Q2 of last year. Mexico remains our largest market and continues to be a key contributor to both growth and profitability.

Speaker #4: Starting with net gaming revenue, we generated $69.4 million during the quarter, representing growth of 27% compared to the second quarter of 2025. Both Spain and Mexico delivered excellent performances and were the primary drivers of growth.

Speaker #4: In Spain, net gaming revenue increased by 5.5 million euros year over year to 27.6 million representing growth of nearly 25%. The market continues to perform exceptionally well and reflects both healthy customer acquisition and strong player engagement.

Speaker #4: In Mexico, net gaming revenue increased by 7.1 million euros to 36.1 million representing growth of approximately 24% versus the second quarter of last year.

Speaker #4: Mexico remains our largest market and continues to be a key contributor to both growth and profitability. Our other markets, which include Colombia, Panama, and the city of Buenos Aires, generated 5.7 million of net gaming revenue during the quarter, up more than 50% year over year.

Marcus Arildsson: Our other markets, which includes Colombia, Panama, and the City of Buenos Aires, generated EUR 5.7 million of net gaming revenue during the quarter, up more than 50% year over year. The strongest contributor came from Colombia following the removal of the 19% VAT on customer deposits, which was in effect during most of 2025. We have been able to re-engage customers who had previously reduced activity due to the tax and have now recovered NGR and deposit levels broadly in line with those achieved before the tax was introduced. The attractive market in Panama continued to perform very strongly during the quarter, ahead of our expectations, and especially during the World Cup. Turning to profitability, adjusted EBITDA reached EUR 5.8 million in the quarter, compared to EUR 2.3 million in Q2 of last year.

Speaker #4: The strongest contributor came from Colombia following the removal of the 19% DAT on customer deposits which was in effect during most of 2025. We have been able to re-engage customers who had previously reduced activity due to the tax and have now recovered NGR and deposit levels broadly in line with those achieved before the tax was introduced.

Speaker #4: The attractive market in Panama continued to perform very strongly during the quarter, ahead of our expectations, and especially during the World Cup. Turning to profitability, adjusted EBITDA reached 5.8 million in the quarter compared to 2.3 million euros in the second quarter of last year.

Speaker #4: Within that, Spain contributed 7.8 million while Mexico delivered 3.6 million. Reflecting the operating leverage inherent in the business as revenue continues to scale. Overall, the second quarter reflects strong momentum across the business, continued revenue growth in our core markets, and a further improvement in profitability.

Marcus Arildsson: Within that, Spain contributed EUR 7.8 million, while Mexico delivered EUR 3.6 million, reflecting the operating leverage inherent in the business as revenue continues to scale. Overall, Q2 reflects strong momentum across the business, continued revenue growth in our core markets, and a further improvement in profitability. Turning to our consolidated P&L on Page 11, we can observe that marketing expense was EUR 26.2 million during the quarter, an increase in absolute terms versus last year, but significantly lower as a percentage of revenue. Marketing represented 37.7% of NGR, compared to 41.5% in Q2 of 2025. We continue to see attractive growth opportunities across our markets and are therefore comfortable investing behind them while improving profitability.

Speaker #4: Turning to our consolidated P&L on page 11, we can observe that marketing expense was $26.2 million during the quarter, an increase in absolute terms versus last year, but significantly lower as a percentage of revenue.

Speaker #4: Marketing represented 37.7% of NGR compared to 41.5% in the second quarter of 2025. We continue to see attractive growth opportunities across our markets and are therefore comfortable investing behind them while improving profitability.

Speaker #4: Additionally, given the good performance, we have been seeing this year we decided to make some incremental investment in marketing both in Spain and Mexico.

Marcus Arildsson: Additionally, given the good performance we have been seeing this year, we decided to make some incremental investment in marketing, both in Spain and Mexico, and the acceleration of our top-line growth reflects just that. Going forward, and as has been the case since 2022, we expect to continue gradually reduce marketing investment as a percentage of NGR, with a direct positive impact on adjusted EBITDA. Gaming taxes as a percent of NGR increased materially in the quarter, driven primarily by Mexico and Colombia. In Colombia, where the 19% VAT tax on deposits I mentioned earlier is now levied on gross gaming revenue. Beyond marketing, platform and content costs continue to benefit from scale, while adjusted EBITDA margin improved to 8.4%, compared with 4.3% in Q2 of last year. Now turning to Page 12.

Speaker #4: And the acceleration of our top-line growth reflects just that. Going forward and as in the case as has been the case since 2022, we expect to continue gradually reduce marketing investment as a percentage of NGR, with a direct positive impact on adjusted EBITDA.

Speaker #4: Gaming taxes as a percent of NGR increased materially in the quarter, driven primarily by Mexico and Colombia. In Colombia, where the 19% DAT tax on deposits I mentioned earlier is now levied on gross gaming revenue.

Speaker #4: Beyond marketing, platform and content costs continue to benefit from scale, while adjusted EBITDA margin improved to 8.4% compared with 4.3% in the second quarter of last year.

Speaker #4: Now, turning to page 12, net gaming revenue increased by 27% year over year driven by a combination of customer growth and higher spend per active customer.

Marcus Arildsson: Net gaming revenue increased by 27% year over year, driven by a combination of customer growth and higher spend per active customer. Average monthly active customers increased by 12% to approximately 173,000 during the quarter. At the same time, average monthly spend per active customer increased by 13% versus last year, reaching EUR 134. We acquired approximately 108,000 first-time depositors during the quarter, representing growth of 37% versus Q2 of last year. While cost per acquisition improved to EUR 200 versus EUR 217 in the prior year quarter. This reflects strong execution across both acquisition and retention, as well as a favorable market environment in our core jurisdictions. Turning to Spain on Page 13. Net gaming revenue reached EUR 27.6 million during Q2, over 25% versus the same period last year, and 8% above sequentially. Average monthly active customers increased by approximately 11% year over year.

Speaker #4: Average monthly active customers increased by 12% to approximately $173,000 during the quarter. At the same time, average monthly spend per active customer increased by 13% versus last year, reaching $134.

Speaker #4: We acquired approximately $108,000 first-time depositors during the quarter, representing growth of 37% versus Q2 of last year. While cost per acquisition improved to $200 versus $217 in the prior year quarter.

Speaker #4: This reflects strong execution across both acquisition and retention, as well as a favorable market environment in our core jurisdictions. Turning to Spain, on page 13, net gaming revenue reached 27.6 million during the second quarter, up 25% versus the same period last year.

Speaker #4: An 8% above sequentially. Average monthly active customers increased by approximately 11% year over year. Spain continues to perform ahead of our retention, health acquisition, and improved player values.

Marcus Arildsson: Spain continues to perform ahead of our expectations. The market is benefiting from strong retention, health acquisition, and improved player values. Importantly, since Q3 2025, we're seeing higher player values that have allowed us to increase marketing investment while still generating attractive returns. Spain remains a mature and tightly regulated market, while we're benefiting from structural growth in that market, we're also recovering market share, which makes the level of growth we're currently achieving particularly encouraging. Moving now on to Mexico on page 14. Net gaming revenue increased 24% year-over-year in Q2, reaching EUR 36.1 million. As we mentioned in our last call, we continue to improve the quality of our customer database, hence the 10% sequential decline in active customers versus Q1 earlier this year.

Speaker #4: Importantly, since the third quarter of 2025, we're seeing higher player values that have allowed us to increase marketing investment while still generating attractive returns.

Speaker #4: Spain remains a mature and tightly regulated market, and while we're benefiting from structural growth in that market, we're also recovering market share, which makes the level of growth we're currently achieving particularly encouraging.

Speaker #4: Moving now on to Mexico, on page 14, net gaming revenue increased 24% year over year in the second quarter, reaching 36.1 million euros. As we mentioned in our last call, we continue to improve the quality of our customer database hence the 10% sequential decline in active customers versus Q1 earlier this year.

Speaker #4: We still managed to grow it slightly versus the prior year period thanks to strong acquisition around the World Cup, particularly with Mexico making it past the group stage.

Marcus Arildsson: We still managed to grow it slightly versus the prior year period, thanks to strong acquisition around the World Cup, particularly with Mexico making it past the group stage. As such, the increase in net gaming revenue was driven almost entirely by higher spend per active customer, reflecting the actions we have taken to improve customer quality and reduce promotional abuse within the database. Mexico has also benefited from a more rational competitive environment than we anticipated at the beginning of the year. Combined with our strong brand, product offering, and disciplined marketing approach, this has supported continued growth and improved profitability. Overall, Mexico remains our largest market and still one of our biggest growth opportunities to drive future value creation for Codere Online. On page 15, turning to the balance sheet. We closed the quarter with approximately EUR 63 million of total cash, of which EUR 58 million was available.

Speaker #4: As such, the increase in net gaming revenue was driven almost entirely by higher spend per active customer, reflecting the actions we have taken to improve customer quality and reduce promotional abuse within the database.

Speaker #4: Mexico has also benefited from a more rational competitive environment than we anticipated at the beginning of the year, combined with our strong brand product offering and disciplined marketing approach.

Speaker #4: This has supported continued growth and improved profitability. Overall, Mexico remains our largest market and still one of our biggest growth opportunities to drive future value creation for Codere Online.

Speaker #4: On page 15, turning to the balance sheet, we closed the quarter with approximately $63 million of total cash, of which $58 million was available.

Speaker #4: Our structural negative working capital position remained in line at approximately $25 million euros, or 10% of LTM net gaming revenue. Supporting the strong cash generation of the business.

Marcus Arildsson: Our structural negative working capital position remained in line at approximately EUR 25 million or 10% of LTM net gaming revenue, supporting the strong cash generation of the business. The strength of our balance sheet with no financial debt and higher cash continues to provide significant flexibility as we evaluate capital allocation opportunities to support and drive future growth. Turning to page 16. We generated EUR 6.9 million of cash flow during Q2, increasing available cash to EUR 58 million at quarter end. This result reflects the continued improvement in profitability, as well as our ability to convert earnings into cash. As we have discussed in previous quarters, the timing of certain working capital and tax items can impact cash flow in any given quarter, and Q2 was positively impacted by some of them.

Speaker #4: The strength of our balance sheet, with no financial debt and higher cash, continues to provide significant flexibility as we evaluate capital allocation opportunities to support and drive future growth.

Speaker #4: Turning to page 16, we generated $6.9 million of cash flow during the second quarter, increasing available cash to $58 million at quarter end. This result reflects the continued improvement in profitability as well as our ability to convert earnings into cash.

Speaker #4: As we have discussed in previous quarters, the timing of certain working capital and tax items can impact cash flow in any given quarter. In Q2, it was positively impacted by some of them.

Speaker #4: As a rule of thumb, when looking at the full year, we would expect to convert a high proportion of our adjusted EBITDA into cash.

Marcus Arildsson: As a rule of thumb, when looking at the full year, we would expect to convert a high proportion of our adjusted EBITDA into cash, with corporate income tax being the key relevant difference between the two. Turning to page 18. As Aviv mentioned, we are raising guidance for full year 2026 net gaming revenue to between EUR 255 and 265 million, and adjusted EBITDA of between EUR 20 to 25 million. The bridge between our original outlook and our revised guidance can be explained primarily by four primary factors. First, Colombia has benefited from the removal of the 19% VAT on deposits, allowing us to reengage players who had reduced or stopped playing due to the tax, and bringing activity levels back to broadly in line with those seen before the measure was introduced last year.

Speaker #4: With corporate income tax being the key relevant difference between the two. Turning to page 18, as I mentioned, we are raising guidance for full year 2026, net gaming revenue to between $255 and $265 million euros, and adjusted EBITDA of between $20 to $25 million euros.

Speaker #4: The bridge between our original outlook and our revised guidance can be explained primarily by four primary factors. First, Colombia has benefited from the removal of the 19% VAT on deposits allowing us to re-engage players who had been who had reduced or stopped playing due to the tax and bringing activity levels back to broadly in line with those seen before the measure was introduced last year.

Speaker #4: And second, Spain has continued to outperform our expectations, supported by stronger player values, which have encouraged us to add to our investment in marketing while maintaining attractive returns and profitability.

Marcus Arildsson: Second, Spain has continued to outperform our expectations, supported by stronger player values, which have encouraged us to add to our investment in marketing while maintaining attractive returns and profitability. That's on top of the industry group we are benefiting from. Third, as I mentioned earlier, Mexico has benefited from a more favorable competitive environment than originally anticipated, with two relevant operators not currently active in the market. Fourth, the Mexican peso has remained stronger than assumed when we established our original outlook, having already contributed to more than EUR 4 million in the H1 of the year. That said, the outlook revision is not explained by these factors alone. We have seen strong execution and strong underlying performance across virtually all areas of the business.

Speaker #4: And that's on top of the industry growth we are benefiting from. And third, as I mentioned earlier, Mexico has benefited from a more favorable competitive environment than originally anticipated, with two relevant operators not currently active in the market.

Speaker #4: And fourth, the Mexican peso has remained stronger than assumed when we established our original outlook, having already contributed to more than $4 million euros in the first half of the year.

Speaker #4: That said, the outlook revision is not explained by these factors alone. We have seen strong execution and strong underlying performance across virtually all areas of the business.

Speaker #4: Sports betting has performed exceptionally well, supported by a World Cup that exceeded our expectations, while our casino business has also continued to grow strongly.

Marcus Arildsson: Sports betting has performed exceptionally well, supported by a World Cup that exceeded our expectations, while our casino business has also continued to grow strongly. We have also seen meaningful improvements in markets such as Panama, which delivered its strongest quarter to date. Overall, we believe the Q2 demonstrates that Codere Online is firing on all cylinders with growth, player engagement, monetization, and profitability all trending in the right direction. That's all from my end. I will now hand it back to Aviv for closing remarks.

Speaker #4: We have also seen meaningful improvements in markets such as Panama, which delivered its strongest quarter to date. And overall, we believe the second quarter demonstrates that Codere Online is firing on all cylinders with growth, player engagement, monetization, and profitability all trending in the right direction.

Speaker #4: That's all from my end. I will now hand it back to Avi for closing remarks.

Speaker #1: Thank you, Marcos. Before we move to the Q&A session, I would like to thank all Codere Online employees for their hard work and dedication especially around the World Cup, the strong results we reported today are direct reflection of the efforts of our team across all our markets.

Aviv Sher: Thank you, Markus. Before we move to the Q&A session, I would like to thank all Codere Online employees for their hard work and dedication, especially around the World Cup. The strong results we reported today are a direct reflection of the efforts of our team across all our markets. I would like also to thank our shareholders and analysts for their continued support and interest in Codere Online. With that, operator, please open the line for questions.

Speaker #1: I would like also to thank our shareholders and analysts for their continued support and interest in Codere Online. With that, operator, please open the line for questions.

Speaker #3: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Operator 2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jeff Stantial with Stifel. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jeff Stantial with Stifel. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jeff Stanchel, with stifle.

Speaker #3: Your line is open. Please go ahead.

Speaker #2: Hey, good morning to the Marcus Guillermo. Thanks for taking our questions. Maybe why don't we start off on the World Cup? Two parted here.

Jeff Stantial: Hey, good morning, Aviv, Marcus, Guillermo. Thanks for taking our questions. Why don't we start off on the World Cup, two-parted here. First, can you just talk about what you have seen in terms of retention and cross-sell of the 40,000 new bettors that you called out now that the tournament has ended? Second, you called out that CAC actually came down quarter on quarter and the conversion rate went up despite more competition around the tournament. If you could just help us sort of think about that trend as well, because it is a bit surprising. Thanks.

Speaker #2: First, can you just talk about what you've seen in terms of retention and cross-sell of the 40,000 new bettors that you called out now that the tournament has ended?

Speaker #2: And then second, it does look like or you called out that CAC actually came down quarter on quarter and the conversion rate went up despite more competition around the tournament.

Speaker #2: So if you could just help us sort of think about that trend as well because it's a bit surprising. Thanks.

Speaker #1: Okay. Thanks, Jeff. Please keep in mind the second question because I think one word I didn't understand. But the first question regarding the World Cup, we already see players that continue to play with us.

Aviv Sher: Okay. Thanks, Jeff. Please keep in mind the second question, because I think one word I did not understand. The first question regarding the World Cup, we already see players that continue to play with us. It is still super early to say, right? The World Cup just ended a couple of weeks ago. The margins were favorable and not favorable, depend on the country. People are a little bit run out of money, plus summer. We need to wait a little bit longer to see if those players are I do not want to say one-timers, but for sure those are new players that we did not see before, to know exactly their value. So far it looks okay. It looks better than expected. Probably next quarter I can comment more accurate on that and give better details.

Speaker #1: It's still super early to say, right? The World Cup just ended a couple of weeks ago. The results were the margins were favorable and not favorable depend on the country.

Speaker #1: So people are a little bit run out of money. Plus, it's summer, so we need to wait a little bit longer to see if those players are—I don't want to say one-timers—but for sure those are new players that we didn't see before.

Speaker #1: To know exactly their value. So far, it looks okay. It looks better than expected. Probably next quarter I can comment more accurately on that and give better details.

Speaker #1: Regarding the CAC, what was the question exactly about the CAC?

Aviv Sher: Regarding the CAC, what was the question exactly about the CAC?

Speaker #2: Yeah, that's it. So CAC was down, quarter on quarter in Q2, and that's despite what I would think would be more competition and more folks investing around the World Cup.

Jeff Stantial: I was asking if the CAC was down quarter on quarter in Q2, and that's despite what I would think would be more competition and more folks investing around the World Cup. Just sort of an explanation of what drove that.

Speaker #2: So just sort of an explanation of what drove that.

Speaker #1: Yeah, I think maybe we can say we cashed out during the World Cup because we didn't invest as much as others. We invest more around the World Cup.

Aviv Sher: Yeah. I think maybe we can say we cashed out during the World Cup because we didn't invest as much as others. We invest more around the World Cup. I think our brand was strong enough maybe to enjoy people just searching for betting and arriving to us because of our previous investment. I think this gives part of the answer. Plus, we didn't invest directly into the World Cup broadcast, which was extremely high, extremely expensive. We tried to keep the money around the World Cup, and I think this strategy proved well. We saw that the CPA went down.

Speaker #1: And I think our brand was strong enough, maybe, to enjoy people just searching for betting and rising to us because of our previous investment.

Speaker #1: So I think this gives part of the answer. Plus we didn't invest directly into the World Cup broadcast, which was extremely high, extremely expensive.

Speaker #1: We tried to keep the money around the World Cup. And I think the strategy proved well. So we saw that the CPA went down.

Speaker #2: That's great. Thanks for that, Avi. And then maybe, just shifting gears over to the cost side, it looks like, just running some quick back-of-the-envelope math, that the updated guidance implies about 5% both through the EBITDA and the back half, versus about mid-30% that you realized in the front half.

Jeff Stantial: That's great. Thanks for that, Aviv. Maybe just shifting gears over to the cost side, it looks like just running some quick back of envelope, but the updated guidance implies about 5% flow through to EBITDA in the H2 versus about mid-30% that you realized in the H1. Marcus, can you just help us think about sort of some of the puts and takes here in bridging those two? Taking a step back more thematically, just how you think about operating leverage in the model at this point in time and what the right go forward EBITDA flow through looks like, I guess, if you sort of make that assumption that CAC end user acquisition remains somewhat stable.

Speaker #2: Marcus, can you just help us think about sort of some of the puts and takes here in bridging those two? And then take it a step back more thematically, just how you think about operating leverage in the model at this point in time and what the right go-forward EBITDA flow through looks like?

Speaker #2: I guess if you sort of make that assumption that CAC and user acquisition remains somewhat stable.

Speaker #1: Yeah, thanks, Jeff. First point, broadly speaking, we're not making any substantial sort of statements or differentiation between the first and the second half. We don't expect any material differences in terms of flow through to EBITDA.

Marcus Arildsson: Yeah. Thanks, Jeff. First point, broadly speaking, we're not making any substantial sort of statements or differentiation between the H1 and the H2. We don't expect any material differences in terms of flow through to EBITDA. As you mentioned, it's relatively close in terms of what the implied figures are for the H2. No big changes, the H1 versus the H2. Over time, as you know, there's a number of factors in our P&L, which has more of a variable component to it, which is gaming taxes, which we're very much subject to what the authorities do. We also have a significant other cost in the model, which is basically platform, which is also substantially variable. There's other items in there like payment methods, et cetera, which broadly speaking, probably are more variable than fixed.

Speaker #1: As you mentioned, it's relatively close in terms of what the implied figures are for the second half. So no big changes the first half versus the second half.

Speaker #1: Over time, as you know, there are a number of factors in our P&L which have more of a variable component to them, such as gaming taxes, which are very much subject to what the authorities do.

Speaker #1: We also have a significant other cost in the model which is basically platform, which is also substantially variable. And then there's other items in there like payment methods, et cetera, which broadly speaking probably are more variable than fixed, no?

Marcus Arildsson: There are certain leverage in the business in terms of marketing and certain other expenses in terms of overheads basically. Over time, as we've seen so far, I think the conversation mostly when we have it with you guys is that there's a lot of focus on marketing. There is a little bit of leverage as well, over time in other expenses. Big picture is that we think we will progress both from keeping marketing as a lower percent of NGR. There's also probably a little bit of additional sort of leverage, operating leverage in the other expenses in the P&L. Broadly speaking, we have not foreseen anything new that comes from in the H2 of the year. Overall that's the outlook that we have with respect to the H2 and just a few points on how we see it.

Speaker #1: There are certain leverage in the business in terms of marketing and certain other expenses in terms of overheads, basically, no? So over time, as we've seen so far, I think the conversation mostly when we have it with you guys is that there's a lot of focus on marketing.

Speaker #1: There is a little bit of leverage as well over time in other expenses. So big picture is that we think we'll be progress both from keeping marketing as a lower percent of sort of NGR, but there's also probably a little bit of additional sort of leverage operating leverage in the other expenses in the P&L.

Speaker #1: But broadly speaking, we don't we have not foreseen anything new that comes from the second half of the year. So overall, that's the outlook that we have, with respect to the second half and just a few points on how we see it.

Speaker #1: Was there another.

Marcus Arildsson: Was there another-

Speaker #2: That's great. Thank you for.

Jeff Stantial: That's great. Thank you for-

Speaker #1: Okay. Thank you.

Marcus Arildsson: Okay.

Speaker #2: No, I think you hit it for that question. I was just going to squeeze in if possible one more, which is Colombia. So some good news there with the VAT tax.

Jeff Stantial: No, I think you hit it for that question. I was just going to squeeze in, if possible, one more, which is Colombia. Some good news there with the VAT tax being removed. I'm curious just how you're sort of thinking about investment in that market, how much of a priority it is and maybe how much, if there is any, a little bit of a wait and see on marketing investment, just given it seems to us there's still a little bit of uncertainty out there on what ultimately happens from a tax standpoint.

Speaker #2: Being removed, I'm curious just how you're sort of thinking about investment in that market, how much of a priority it is, and maybe how much there's a little bit of a if there is any a little bit of a wait and see on marketing investment, just given it seems to us there's still a little bit of uncertainty.

Speaker #2: Out there on what ultimately happens from a tax standpoint.

Speaker #1: Yeah, well, Avi, do you want to go ahead? No, listen, Jeff, the fact is that there is still tax imposed—more taxes than anticipated.

Marcus Arildsson: Yeah.

Aviv Sher: Yeah. Well-

Marcus Arildsson: Aviv, do you want to go ahead?

Aviv Sher: No. Listen, Jeff, the fact is that there is still tax imposed, more taxes than anticipated. It's enough to allow us to do good CRM and retention and invest back into our players. It's not good enough to start marketing in terms of ROI. Hopefully with the political change there, we will see maybe more business-oriented presidents, sorry. With that, if another layer of tax will be removed and we are back to the prior tax level, then we can discuss marketing investment back again. Far, by the way, we are happy. We see good ROI on our current customer base, and if we can continue and improve our product, I think we will be in a good position to start growing back again, the marketing investment and see good ROI.

Speaker #1: It's enough to allow us to do good CRM and retention and invest back into our players. It's not good enough to start marketing in terms of ROI.

Speaker #1: So hopefully with the political change there, we will see maybe more business-oriented present, presidents, sorry, and with that, if the another layer of tax will be removed and we are back to the prior tax levels, then we can discuss marketing investment back again.

Speaker #1: So far, by the way, we are happy. We see good ROI on our current customer base. And if we can continue and improve our product, I think we will be in a good position to start growing back again the marketing investment and see good ROI.

Speaker #1: So we are a little bit still, as you say, wait and see, a little bit more. I hope by the end of the year we will know exactly what's going on there and if the extra tax is removed, then we can invest more.

Aviv Sher: We are a little bit still, as you say, wait and see a little bit more. I hope by the end of the year we will know exactly what's going on there. If the extra tax is removed, then we can invest more.

Speaker #2: Thanks very much. And nice corner.

Jeff Stantial: Thanks very much and nice quarter.

Speaker #1: Thank you.

Marcus Arildsson: Thank you.

Speaker #3: Thank you.

Aviv Sher: Thank you.

Speaker #4: The next question comes from the line of Brian Siegel with Craig Hallum Capital Group. Your line is open. Please go ahead.

Operator 2: The next question comes from the line of Brian Siegel with Craig-Hallum Capital Group. Your line is open. Please go ahead.

Operator: The next question comes from the line of Brian Siegel with Craig-Hallum Capital Group. Your line is open. Please go ahead.

Speaker #2: Hey, good day, Avi, Marcus. World Cup, want to stay on it. What percent of new activations, new users are also playing I Casino? And then if you have any context from those previous World Cup or previous soccer tournaments, but curious how that compares relative to your expectations.

Brian Siegel: Hey, good day, Aviv, Markus. World Cup, want to stay on it. What % of new activations, new users are also playing iCasino? Then if you have any context from the previous World Cup or previous soccer tournaments, but curious how that compares relative to your expectations.

Aviv Sher: I won't give exact figures, but I think, let's say I'm a little bit exaggerating, okay? We see around 30% to 40% cross-activation. So far, by the way, the new users fit into this profile. As I said, let's keep this question for the next Q, and then I can report exactly if they behaved as expected and continue with us, and there is no churn. So far, we are happy with the results. I think to your question, the answer is yes. There is around 30% to 40% that are playing iGaming. More table games, by the way, if it's interesting for the audience to hear, than slots. Definitely they are playing, and I think the team is doing a good job by crossing them. Yes, so far the profile fits the, let's call it, the regular profile that we've seen.

Speaker #1: I won't give exact figures, but I think—let's say, I'm a little bit exaggerating, okay? We see around 30 to 40 percent gross activation.

Speaker #1: So far, by the way, the new users fit into this profile. As I said, let's keep this question for the next quarter. And then I can report exactly if they behaved as expected and continue with us.

Speaker #1: And there is no churn. So far, we are happy with the results. So I think your answer to your question, the answer is yes.

Speaker #1: There is around 30 to 40 percent that are playing iGaming. More table games, by the way, if it's interesting for the audience to hear, than slots.

Speaker #1: But definitely they are playing. And I think the team is doing a good job by crossing them. So yes, so far the profile fits.

Speaker #1: Let's call it the regular profile that we see.

Speaker #2: Great. Then just on if I look at monthly actives, in both Spain and Mexico, sequentially took a step down despite the World Cup. I guess I know you mentioned a bit of a change in customer acquisition strategy, but can you elaborate what specifically you guys are focused on there if that's concerning to you on the active step down despite the World Cup?

Brian Siegel: Great. Just on, if I look at monthly actives in both Spain and Mexico sequentially took a step down despite the World Cup. I guess, I know you mentioned it, a bit of a change in customer acquisition strategy, but can you elaborate what specifically you guys are focused on there, if that's concerning to you on the active step down despite the World Cup?

Speaker #1: No, I don't think it's concerning. Don't forget that we entered the summer. You are missing half of the World Cup in these results, by the way.

Aviv Sher: No, I don't think it's concerning. Don't forget that we entered the summer. You are missing half of the World Cup in these results, by the way. You need to take this into consideration in terms of activity, because Spain got to the final, and we have Spain as one of our leading markets. We are not worried. The active users that you see is a healthy, active base. Whatever we are cleaning right now is intentionally. Okay? It's not out of control, it's the opposite. This is why you see the spend per customer goes up and revenue goes up. Just looking at the KPI of actives in that case is not enough. We are very happy with the results.

Speaker #1: You need to take this into consideration. In terms of activity, because Spain got to the final and we have Spain as one of our leading markets.

Speaker #1: We are not worried. The active users that you see is a healthy active base. Whatever we are cleaning right now is intentionally. Okay? It's not out of control.

Speaker #1: It's the opposite. This is why you see the spend poor customer goes up and revenue goes up. So just looking at the KPI of active is in that case is not enough.

Speaker #1: So we are happy. We are very happy with the results.

Speaker #2: Excellent. Then en maybe just last one for us with Spain winning. Would have maybe expected a bit bigger of a sports win impact. I know a lot of unders hit.

Brian Siegel: Excellent. Maybe just last one for us. With Spain winning, would've maybe expected a bit bigger of a sports win impact. I know a lot of unders hit. I know Yamal didn't score many goals, I think only one through the tournament. Can you just talk through player behavior activity from a betting standpoint in Spain specifically, relative to, again, them winning, but maybe some of the other prop bets that were done?

Speaker #2: I know Yamal and didn't score many goals. I think only won through the tournament. But can you just talk through player behavior activity from a betting standpoint in Spain specifically relative to, again, them winning, but maybe some of the other prop bets that were done?

Aviv Sher: They bet. I think it's a little bit general question to answer. I think they bet more than what we've seen last tournament. I think the beginning, the tie, if we go into specific, the tie with Cabo Verde a little bit took a lot of money from the players, so they didn't engage till later stages, if it makes sense in some way. Later when Spain progressed, so does the betting from Spain on Spain progress. Yes, and we see year-on-year. Tournament-on-tournament, more bets and more stakes. You cannot really compare the two tournaments, also it's fair to say. Remember, we had here 25% more games than previous tournaments overall. I think in that sense, it helped us to gain a lot more stakes, more than expected. Even in a normalized way, we see more stakes.

Speaker #1: They bet I think it's a little bit general question. To answer, I think they bet more than what we've seen last tournament. I think the beginning, the tie, if we go into specific, the tie with Capo Verde a little bit took a lot of money from the players.

Speaker #1: So they didn't engage till later stages if it makes sense in some way. And then later when Spain progressed, so does the betting from Spain on Spain, progressed.

Speaker #1: So yes, and we see year on year, year on year, sorry, tournament on tournament, more bets and more stakes. You cannot really compare the two tournaments.

Speaker #1: Also, it's fair to say, remember we had here 25 more percent more games than previous tournaments overall. So I think in that sense, it helped us to gain a lot more stakes.

Speaker #1: More than expected. Even in a normalized way, we see more stakes. So overall, I think the bettors were happy. For sure, Spanish people were happy, right?

Aviv Sher: Overall, I think the bettors were happy. For sure Spanish people were happy, right? I think from a bookie standpoint, this is the best result that could happen. The game finished in a tie, but Spain wins, so customer lost money, but still happy that their team wins. It's win-win for everyone in this sense.

Speaker #1: And I think from a bookie standpoint, this is the best results that could happen. The game finished in a tie. But Spain win. So customer lost money, but still happy that their team wins.

Speaker #1: So it's win-win for everyone in this sense.

Speaker #2: Thanks, Aviv. Good luck, guys.

Brian Siegel: Thanks, Aviv. Good luck, guys.

Speaker #1: Thank you, Ryan.

Aviv Sher: Thank you, Wayne.

Speaker #4: The next question comes from the line of Michael Kapinski with Noble Capital Markets. Your line is open. Please go ahead.

Operator 2: The next question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open. Please go ahead.

Operator: The next question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open. Please go ahead.

Speaker #3: Thank you and congratulations on your quarter. I was a couple of questions on nuances from the previous questions. Excluding the word World Cup, how have betting volumes and customer activity trended during July?

Michael Kupinski: Thank you. Congratulations on your quarter. A couple of questions or nuances from the previous questions. Excluding the World Cup, how have betting volumes and customer activity trended during July? Are you seeing that momentum continue in Q3?

Speaker #3: And are you seeing that momentum continuing the third quarter?

Aviv Sher: I don't think I can give specifics about July, as far as I know. It's important to say that during the World Cup, let's take the World Cup effect sideways or put it aside, we did see a lot of iGaming activity. In general, the activity, not just related to sport, was high. In casino, we beat the expectations, but by a lot. Whether it's with new players coming in, core players, VIP players. Everybody was playing, even though we are entering now the summer. I can say that the trajectory or the vector continues, right? Hopefully it will continue into Q3. We have a little bit of August, let's say, until the La Liga will come back, will take another three weeks, more or less. We need to cruise through August, but I'm optimistic for Q3. I'm optimistic.

Speaker #1: I don't think I can give specifics about July. As far as I know, but it's important to say that during the World Cup, let's take the World Cup effect sideways or put it aside.

Speaker #1: We did see a lot of iGaming activity. So in general, the activity not just related to sports was high. And in casino, we beat the expectations, but by a lot.

Speaker #1: Whether it's with new players coming in, core players, VIP players, so everybody was playing. Even though we are entering now the summer, I can say that the trajectory or the vector continues, right?

Speaker #1: Hopefully, it will continue into the third quarter. We have a little bit of August, let's say until La Liga will come back, will take another three weeks more or less.

Speaker #1: So we need to cruise through August. But I'm optimistic for Q3. I'm optimistic.

Speaker #3: Maybe just add like a and just reiterate what Aviv was mentioning. Both casino side of things as well as sports was doing well. The World Cup, the effect from World Cup in terms of NGR fell roughly 50% in June and 50% in July.

Marcus Arildsson: Maybe just to add and just reiterate what Aviv was mentioning. Both casino side of things as well as sports was doing well. The effect from World Cup in terms of NGR fell roughly 50% in June and 50% in July. Just keep it in mind. Just two points to add to your picture.

Speaker #3: Just so you keep it in mind. So just two points to add. To your picture.

Speaker #1: Yeah, that's terrific.

Michael Kupinski: Yeah, that's terrific. You added approximately 40,000 new customers during World Cup. Historically, what percentage of tournament-acquired customers remain active six to 12 months after a major sporting event? Obviously you can compare it to 2022.

Speaker #3: You added approximately 40,000 new customers during World Cup. Historically, what percentage of tournament-acquired customers a major sporting event? And obviously, you can compare it to 2022.

Aviv Sher: Listen, the rule of thumb, I'll start from the end. The end is that I don't know the answer by heart, but what I can say in general, what we experienced in the past, if you want, Michael, send us an email. I'll check out and reply exactly, or with at least good figures. In general, those players don't last a lot, and they come back again for the next big tournament, whether it's Euro Cup or CONCACAF or whatever, related to the territory, then another World Cup, or a Canelo fight. They are not one-timers, but they are single bets that they bet on a single market and so on. You can also see it in the CPA. Our rule of thumb is if the CPA is low, probably the return would be as expected, lower.

Speaker #1: In general, listen, the rule of thumb, I'll start from the end. The end is that I don't know the answer by heart. But what I can say in general, what we experienced in the past, and if you want Michael send us an email, I'll check out and reply exactly.

Speaker #1: Or with at least a good figures. But in general, those players don't last a lot. And they come back again for the next big tournament, whether it's Euro Cup or CONCAF or whatever.

Speaker #1: Related to the territory. And then another World Cup. Or a Canelo fight. Those are not one-timers, but they are single bets that they bet on a single market.

Speaker #1: And so on. And you can also see it in the CPA, our rule of thumb is if the CPA is low, probably the return would be as expected lower.

Speaker #1: So if we buy them cheap, they return cheap. So this is more or less how we look at it. But I can look for the exact answer and give it to you.

Aviv Sher: If we buy them cheap, they return cheap. This is more or less how we look at it. I can look for the exact answer and give it to you. This is more or less how I see.

Speaker #1: But this is more or less how I see it.

Speaker #3: Great. And then Mexico, obviously, is one of your largest growth opportunities. You characterized the competitive environment as favorable. And mentioned about your two major competitors there.

Michael Kupinski: Great. Mexico obviously is one of your largest growth opportunities. You characterize the competitive environment as favorable, and mentioned about your two major competitors there. I was wondering if you could just add a little color on, because it's curious that the promotional activity, the intensity didn't sound like it was as strong during World Cup. I was just wondering if you could just add a little bit more color about the competitive environment there and the changes in promotional intensity, maybe across the market, even following World Cup.

Speaker #3: I was wondering if you could just add a little color on because it's curious that the promotional activity the intensity didn't sound like it was as strong during World Cup.

Speaker #3: I was just wondering if you could just kind of add a little bit more color about the competitive environment there and the changes in promotional intensity, maybe across the market, even following World Cup.

Speaker #1: No, listen, the competitive environment, if you all read the news and follow, you see a lot of new even two big competitors, let's say they are out, we get instead of them four big competitors in.

Aviv Sher: If you all read the news and follow, you see a lot of new competitors. Even two big competitors, let's say they are out, we get instead of them, four big competitors in. It's not a, let's call it a closed competition arena. I do believe that each competitor coming in gives us more strength, and the more they expose gambling top of mind since we are veterans in the market with heavy investment into TV and good assets, it actually benefits us somehow. The competitive environment is harsh. We see good competitors coming in with good products, with spending a lot of money. If you're talking about the promotional activity, giving a lot of free money, let's say around $100 free, $150 free, which are very big amounts and allow the customers to test their product. We have a very strong brand.

Speaker #1: So it's not, let's call it, a closed competition arena. I do believe that each competitor is coming in, give us more strength. And the more they expose are veterans in the market with heavy investment into TV, and good assets, it's actually benefit us somehow.

Speaker #1: The competitive environment is harsh. It's harsh. We see good competitors coming in with good products, with spending a lot of money. If you're talking about lot of free money, let's say around $100 free, $150 free, which are very big amounts.

Speaker #1: And allow the customers to test their products. But we have a very strong brand. We have very good retention schemes and promotional activity for our core and VIP customers.

Aviv Sher: We have a very good retention schemes and promotional activity for our core and VIP customers. We are very confident in the work that we are doing in Mexico. We do need to continue and invest, whether it's in top of mind or in the promotional activity, and give some of the money back to the players in terms of promotions. We cannot ignore the competitive environment. It is getting crowded, and they are heavy spenders over there.

Speaker #1: So we are very confident in the work that we are doing in Mexico. But we do need to continue in invest whether it's in top of mind or in the promotional activity and give the money some of the money back to the players in terms of promotions.

Speaker #1: We cannot ignore the competitive environment. It is getting crowded and they are heavy spenders over there.

Speaker #3: Gotcha. And final question. Obviously, you have 62 million euros in cash, no financial debt. I was wondering if you can talk a little bit about how you're thinking about capital allocation and then you mentioned in your comments that you're evaluating ways to improve shareholder value.

Michael Kupinski: Got you. Final question. Obviously you have EUR 62 million in cash, no financial debt. I was wondering if you can talk a little bit about how you're thinking about capital allocation. You mentioned in your comments that you're evaluating ways to improve shareholder value, and I was just wondering what are the options that you're considering at this point?

Speaker #3: And I was just wondering what are the options that you're considering at this point?

Aviv Sher: Marcus, your turn.

Speaker #1: Sure, sure, sure. I can start. Yeah, so I mean, things have changed quite significantly for us now during the last two years approximately or so now, where we've gone from bottoming out in terms of cash and where we're really now seeing significant cash flow generation.

Marcus Arildsson: Sure. I can start. Yeah. Things have changed quite significantly for us now during the last 2 years, approximately or so now, where we've gone from bottom out in terms of cash and where we're really now seeing significant cash flow generation. The most interesting thing here, I think for us and for you, is that starts to give us some significant strategic flexibility to look at options. The things that we're pursuing, we're in close cooperation with the board, close conversations. We are evaluating strategic options as we speak. Mostly in Latin America, we're looking at how can we get our hands on specific licenses, what's the best route of getting into certain markets. As you know, there's quite a few markets in that part of the world, which is regulating, many of them for the first time, the online gaming market.

Speaker #1: And the most interesting thing here, I think for us and for you, is that that starts to give us some significant strategic flexibility to look at options.

Speaker #1: And the things that we are pursuing, we're in close cooperation with the board, close conversations. We are evaluating strategic options. As we speak, mostly in Latin America, we're looking at how can we get our hands on specific licenses, what's the best route of getting into certain markets, as you know, there's quite a few markets in that part of the world, which is regulating many of them for the first time.

Speaker #1: The online gaming market. So we're staying very close to those situations. And that's probably going to be one of the key avenues where we will put some of the cash to work.

Marcus Arildsson: We're staying very close to those situations, and that's probably going to be one of the key avenues where we will put some of the cash to work. The second piece is, of course, the share repurchase programs, which we have not been active. We have not done any buybacks this year. We did about two and a half to 3 million worth towards the tail end of last year. That is still in effect. Obviously, it's sensitive, so we cannot go into specific instructions that we have out there. That's definitely still in place, and that's definitely still an option of how we will deploy that extra cash we now are generating and have in our balance sheet. I don't know, Aviv, if you want to add anything else.

Speaker #1: The second piece is, of course, the share repurchase programs, which we have not been active we have not done any buybacks this year. We did about two and a half to three million worth of towards the tail end of last year.

Speaker #1: That is still in effect. Obviously, it's sensitive, so we cannot go into specific instructions that we have out there. But that's definitely still in place.

Speaker #1: And that's definitely still an option of how we will deploy that extra cash we now are generating and have in our balance sheet. I don't know, Aviv, if you want to add anything else.

Speaker #2: No, I think it's mainly should give us strategic ability to take bigger moves. Again, it's not a lot of cash. If you want the cash and some working capital, we are not left with a lot of cash to do some moves.

Aviv Sher: No, I think it mainly should give us a strategic ability to take bigger moves. Again, it's not a lot of cash. If you want the cash and some working capital, we are not left with a lot of cash to do some moves. We are constantly looking, and we are keen to make some of the moves, to materialize some of them. We have things in the pipeline, of course. We have some more cash in surprise that we weren't prepared for. I think it will take us another Q or 2 Qs to decide exactly how to allocate it.

Speaker #2: But we are constantly looking and we are keen to make some of the moves to materialize some of them. But we have things in the pipeline.

Speaker #2: Of course, some let's call it we have some more cash in surprise that we weren't prepared for. So I think we take us another Q or two Qs to decide exactly how to allocate it.

Speaker #3: Thank you for taking my questions and congratulations again.

Michael Kupinski: Thank you for taking my questions. Congratulations again.

Speaker #2: Thank you, Michael.

Aviv Sher: Thank you, Michael.

Speaker #1: Thanks to you.

Marcus Arildsson: Thanks to you.

Speaker #4: Your next question comes from the line of Arthur Rulak with three court LP. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Arthur Rulak with Three Quart LP. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Arthur Rulak with Three Quart LP. Your line is open. Please go ahead.

Speaker #5: Good morning and thank you for taking my questions. My first question is on just fully your marketing spend. I believe on the first quarter call, you had said marketing for the full year would be roughly in line with 2025.

Arthur Rulak: Good morning, thank you for taking my questions. My first question is on just full-year marketing spend. I believe on the Q1 call, you had said marketing for the full year would be roughly in line with 2025. Is that still the case?

Arthur Roulac: Good morning, thank you for taking my questions. My first question is on just full-year marketing spend. I believe on the Q1 call, you had said marketing for the full year would be roughly in line with 2025. Is that still the case?

Speaker #5: Is that still the case?

Aviv Sher: I don't know if it's a few percent. It will be, I think, a few percentages up, like more than 2025. We see good trends in Spain where we are allocating more budgets over there and good returns. We are making the marketing budget a bit higher.

Speaker #1: I think I don't know if it's a few percent. It will be, I think, a few percentages up, like more, more than 2025. We see good trends in Spain, where we are allocating more budgets over there and good returns.

Speaker #1: So, we are making the marketing budget a bit higher, but it's just a bit.

Speaker #3: Yeah, maybe, Tat, given that we're also having quite good performance on NGR in terms of euro amount, perhaps we'll come up a little bit.

Marcus Arildsson: Yeah, maybe to add to that, given that we're also having quite good performance on NGR. In terms of EUR amount, perhaps it will come up a little bit, during the full year as a percentage NGR. We'll pretty much be in that ballpark. Maybe also there's a secondary effect where, as we spend local currency marketing in Mexico, given that the Mexican peso so far has been very strong, obviously that translates into more EUR on marketing. There's also that effect that we need to take into account. Broadly speaking, as a percentage, I think we'll probably end up in the same ballpark, although in terms of EUR, we'll probably be a little bit more.

Speaker #3: During the full year, as the percentage NGR, we would pretty much be in that ballpark. Maybe also there's a secondary effect where as we spend local currency marketing in Mexico, given that the Mexican peso so far has been very strong, obviously that translates into more euros of marketing.

Speaker #3: So there's also that effect that we need to take into account. But broadly speaking, as a percentage, I think we'll probably end up in the same ballpark, although in terms of euros, we'll probably be a little bit more the same percentage as.

Arthur Rulak: The same percentage as 2025. Is that what you're saying?

Arthur Roulac: The same percentage as 2025. Is that what you're saying?

Speaker #5: 2025. Is that what you're saying?

Speaker #2: No, not the same percentage. I think what we are referring to, if you are looking at percentage, then it will decrease. I'm talking about the nominal amount, let's say a little bit with FX to add to it.

Aviv Sher: No, not the same percentage. I think what we are referring to, if you are looking at percentage, then it will decrease. I'm talking about the nominal amount, let's say a little bit with FX to add to it. Let's say in terms of nominal amount, the same amount, not the same percentages. If the NGR will go higher, probably percentages will go lower.

Speaker #2: But let's say in terms of nominal amount, the same amount. Not the same percentages. If the NGR will go higher, probably percentages will go lower.

Marcus Arildsson: Yeah. We're on track. Like we did in the first part now, the percentages is progressively coming down, although in the nominal amount.

Speaker #3: Yeah, we don't track like we did in the first like we did in the first part, the percentages is progressively coming down. Although in a nominal amount, yeah.

Arthur Rulak: Yeah, I know that. I'm just saying, like last year you were around 86.4. At the beginning of the year, you'd say you're going to be about the same level. Does that mean for the year you'll be EUR 2 to 4 million higher? Is that sort of where you're thinking about hitting?

Arthur Roulac: Yeah, I know that. I'm just saying, like last year you were around 86.4. At the beginning of the year, you'd say you're going to be about the same level. Does that mean for the year you'll be EUR 2 to 4 million higher? Is that sort of where you're thinking about hitting?

Speaker #5: I know that. I'm just saying, like last year, you were around 86.4. At the beginning of the year, you'd said you were going to be about the same level.

Speaker #5: Does that mean for the year you'll be two to four million dollars higher? Is that sort of where you're thinking about hitting?

Speaker #3: Yeah, maybe a little bit. We'll see how it comes out, what opportunities we have during the second year and what the decisions on a day-to-day basis will be.

Marcus Arildsson: Yeah, maybe a little bit. We'll see how it comes out, what opportunities we have during the second year, and what the decisions on a day-to-day basis will be. That could be a good starting point, but also, as I mentioned, we have a little bit more in euro terms. We have a little bit more marketing than we thought, just given the strength of the peso. That adds a little bit to the picture as well.

Speaker #3: That could be a good starting point, but also as I mentioned, we have a little bit more in euro terms. We have a little bit more marketing than we thought, just given the strength of the peso.

Speaker #3: That adds a little bit to the picture as well. So, yeah.

Aviv Sher: Also, as term of strategic approach out, if we are looking at it and we have, let's call it excess EBITDA, we think that this money serves us good in terms of investment. We are pushing a little bit the excess EBITDA in order to gain more positions in the marketing. Most of it is going to digital and performance marketing, to support the results. Basically, I think it's good that if we are able to spend even more than last year, but those are not big numbers.

Speaker #2: Also, as term of strategical approach, Art, if we are looking at it and we have let's call it excess EBITDA, we think that this money serves us good in terms of investment.

Speaker #2: So, we are pushing the EBITDA down a little bit—the excess EBITDA—in order to gain more positions in marketing. Most of it is going to digital and performance marketing to support the results.

Speaker #2: So basically, I think it's good that if we are able to spend even more than last year. But those are not big numbers.

Speaker #5: No, no. I mean, so in '24, I think you spent 90 million are we looking at like a '24 number then? Something in that range?

Arthur Rulak: No. In 2024, I think you spent EUR 90 million. Are we looking at like a 2024 number? Something in that range?

Arthur Roulac: No. In 2024, I think you spent EUR 90 million. Are we looking at like a 2024 number? Something in that range?

Speaker #2: Yeah, probably yes. Probably yes. We are trying to say, let's say in ballpark figure, we try to stay around 100 a little bit less than 100 million.

Aviv Sher: Yeah. Probably, yes.

Arthur Rulak: Okay.

Arthur Roulac: Okay.

Aviv Sher: We are trying to stay, let's say, in a ballpark figure, we try to stay around a little bit less than EUR 100 million. This is how we look at it.

Speaker #2: This is how we look at it.

Speaker #5: For the full year, you mean?

Arthur Rulak: For the full year, you mean?

Arthur Roulac: For the full year, you mean?

Speaker #2: Yes.

Aviv Sher: Yes.

Speaker #3: For the full year including of course the thinking about as well that the FX in terms of the FX is hurting us, no? In that sense, given that it's a cost, but roughly speaking.

Marcus Arildsson: For the full year, including, of course, thinking about as well that the FX in terms of the cost-

Aviv Sher: Yeah.

Marcus Arildsson: I think the FX is hurting us now in that sense-

Aviv Sher: Yeah

Marcus Arildsson: Given that it's a cost, but roughly speaking.

Speaker #2: Yeah.

Aviv Sher: Yeah.

Speaker #5: So you're sort of saying that the second half will look very similar to the first half. Is that what you're saying? So the first half, you're at 51.

Arthur Rulak: You're sort of saying that the H2 will look very similar to the H1. Is that what you're saying?

Arthur Roulac: You're sort of saying that the H2 will look very similar to the H1. Is that what you're saying?

Aviv Sher: Yes.

Arthur Rulak: In H1 you were 51. If you're saying you were 86 last year, you're saying about 100 this year for the full year. Is that what you're saying?

Arthur Roulac: In H1 you were 51. If you're saying you were 86 last year, you're saying about 100 this year for the full year. Is that what you're saying?

Speaker #5: If you're saying you're at 86 last year, you're saying about 100 this year for the full year. Is that what you're saying?

Speaker #2: Yeah, probably less. Probably less than that. Let's say—I don't want to give specifics—but let's say between 90 to 100, something like that.

Aviv Sher: Yeah, probably less than that. I don't want to give specifics, but let's say between 90 to 100, something like that.

Speaker #5: I see. Okay. And can you I think you guys have been a public company for a long time, and even growing, you've been doing great.

Arthur Rulak: I see. Okay. I think you guys have been a public company for a long time, you've been growing, you've been doing great. I guess the question would be, what is a more non-growth level of marketing for this business? You look at a lot of your competitors that are out there that are in more lower growth mode. Obviously, you guys are growing almost 27%. That's higher than other people. You're spending more money on marketing. From a profitability perspective, what should we think about as owners of the business in more stable state? You have some guys that are down at 15% to 20% as a percentage of revenue. Somewhere in the low twenties. Is there any reason to think that normal state where you're still getting growth, probably not 27% growth, but still healthy growth, but much more profitability.

Arthur Roulac: I see. Okay. I think you guys have been a public company for a long time, you've been growing, you've been doing great. I guess the question would be, what is a more non-growth level of marketing for this business? You look at a lot of your competitors that are out there that are in more lower growth mode. Obviously, you guys are growing almost 27%. That's higher than other people. You're spending more money on marketing. From a profitability perspective, what should we think about as owners of the business in more stable state? You have some guys that are down at 15% to 20% as a percentage of revenue. Somewhere in the low twenties. Is there any reason to think that normal state where you're still getting growth, probably not 27% growth, but still healthy growth, but much more profitability.

Speaker #5: I guess the question would be, what is a more non-growth level of marketing for this business? You look at a lot of your competitors that are out there, that are in more lower growth mode.

Speaker #5: I mean, obviously you guys are growing almost 27%. That's higher than other people. You're spending more money on marketing. From a profitability perspective, what should we think about as owners of the business in a more stable state?

Speaker #5: You have some guys that are down at 15 to 20% as a percentage of revenue, some are in the low 20s. Is there any reason to think that normal state where you're still getting growth, probably not 27% growth, but still healthy growth, but much more profitability.

Speaker #5: Can you after being public for so long, can you comment on a sort of a very high level about how we should think about that?

Arthur Rulak: After being public for so long, can you comment on a sort of a very high level about how we should think about that?

Arthur Roulac: After being public for so long, can you comment on a sort of a very high level about how we should think about that?

Speaker #2: Yes.

Aviv Sher: Yes. You want to start, Marcus, I'll later.

Speaker #3: Yeah. You want to start, Marcus? I'll lead. Sure, sure. Thanks for the question. Of course, it's very relevant, no? So we're not in a position to sort of communicate specific targets or specific sort of paths that what is clear is that we will progressively decrease marketing as a percentage of NGR.

Marcus Arildsson: Sure. Thanks for the question. Of course, it's very relevant. We're not in a position to sort of communicate specific targets or specific sort of paths, but what is clear is that we will progressively decrease marketing as a percentage of NGR, over time. What is that input? What does that input look like? When will we get there? We don't have it 100% clear, neither we want to communicate any specific points. There is clear, though, is that as we want to maintain the growth, and as a second point, we want to translate less marketing, like less relative marketing into greater profitability. We're on that path. We have been improving and decreasing the percent of marketing as a percent of NGR for the last many quarters. We will continue on that.

Speaker #3: Over time, what is that endpoint? What does that endpoint look like? And when will we get there? We don't have it 100% clear. Neither do we want to communicate in a specific points.

Speaker #3: There is clear, though, is that as we want to maintain the growth and as a second point, we want to translate less marketing, like less relative marketing, integrated profitability.

Speaker #3: So we're on that path. We have been improving and decreasing the percent of marketing, percent of NGR. For the last many quarters, we will continue on that.

Speaker #3: Depending on the activity we see in the marketplace, depending on the opportunities we have, that will be a process that will take a certain pace, no?

Marcus Arildsson: Depending on the activity we see in the marketplace, depending on the opportunities we have, that will be a process that will take a certain pace. That's the path we're on.

Speaker #3: So that's the path we're on.

Speaker #5: No, I appreciate that. I mean, I know we're all every business has to start making more money, right? And you guys are doing a great job.

Arthur Rulak: No, I appreciate that. I know every business has to start making more money, right? You guys are doing a great job. I guess my question is, it's more stepping back, looking at every comp out there is 15% to 25% marketing spending.

Arthur Roulac: No, I appreciate that. I know every business has to start making more money, right? You guys are doing a great job. I guess my question is, it's more stepping back, looking at every comp out there is 15% to 25% marketing spending.

Speaker #5: I guess my question is, it's more stepping back, looking at every comp out there is 15 to 25 percent marketing spending. 15 to 20 for some and so my question is, is there any reason to think that this business wouldn't be migrating to that in the next few years?

Marcus Arildsson: Yes.

Arthur Rulak: My question is: Is there any reason to think that this business wouldn't be migrating to that in the next few years?

Arthur Roulac: My question is: Is there any reason to think that this business wouldn't be migrating to that in the next few years?

Speaker #2: The answer is you are correct, and we should be migrating towards those kind of let's call it the higher end. I don't believe in the lower end.

Aviv Sher: The answer is you are correct. We should be migrating towards those kind of, let's call it the higher end. I don't believe in the lower end, at least not in a regulated market. At the higher end of the range that you said, we should get there eventually. In certain markets, by the way, right now, we are already at those kind of levels of marketing. Don't forget that we still perceive Mexico as a growth market. We can add more money and grow faster. It's a very big market. As you know, we commented before that, competitors are coming in. We need to hold our position and continue to spend money there. In Spain, we are performing much closer to the levels that you are saying.

Speaker #2: At least not in a regulated market. At the higher end of the range that you said. We should get there eventually. In certain markets, by the way, right now, we are already at those kind of levels of marketing.

Speaker #2: Don't forget that we still perceive Mexico as a growth market, and we can add more money and grow faster; it's a very big market.

Speaker #2: And as you know, and we commented before that competitors are coming in, so we need to hold our position and continue to spend money there.

Speaker #2: In Spain, we are performing much closer to the levels that you are saying. So overall, I think as a healthy business, we should look at around, let's say, between 22 to 28 percent.

Aviv Sher: Overall, I think as a healthy business, we should look at around, let's say between 22% to 28%. This is what we believe. We've seen the numbers that create good EBITDA. Again, it's important to say also, on the other hand, that it's a decision, but by our shareholders, how much EBITDA should we generate on expense of growth? We can generate much more EBITDA. We can generate less EBITDA. It depends on the strategic approach that we want to eventually communicate to the market and create the value through whatever, whether it's EBITDA, revenue, market share. It's like a complex, not complex, it's like a game that we need to control. I think you are correct with your approach.

Speaker #2: This is what we believe, and we see in the numbers that create good EBITDA. But again, it's important to say, also, on the other hand, that it's a decision by our shareholders how much EBITDA we should generate at the expense of growth.

Speaker #2: Because we can generate much more EBITDA, we can generate less EBITDA. It depends on the strategic approach that we want to eventually communicate to the market.

Speaker #2: And create the value through whatever whether it's EBITDA, revenue, market share. So it's like a complex not complex, but it's like a game that we need to control.

Speaker #2: I think you are correct with your approach. I think for us as a company, we are aiming for the higher end of, let's say, around 25% plus minus 5% in order to optimize our investment and keep and maintaining our position.

Aviv Sher: I think for us as a company, we are aiming for the higher end of, let's say around 25%, plus minus 5% in order to optimize our investment and keep maintaining our position.

Speaker #3: Maybe just add just a little bit more visibility in terms of there is like two sides to the business, no? Like Aviv was mentioning, no?

Marcus Arildsson: Maybe just add a little bit more visibility in terms of, there are two sides to the business. Like Aviv was mentioning. Basically, as we mentioned before, in Colombia, we're a little bit in a wait and see mode. We're not spending much in marketing. It's same in Argentina, I would say. In Panama and Spain, basically, we are in those type of ballparks that we're talking about in terms of perhaps we could be considered more of a stable state at the marketing level, whilst in Mexico is where we're spending more marketing. The answer to the question lays principally in Mexico, and how we manage that level of marketing. It has come down significantly over the past years and quarters, there are a bit of two different sides to the company and the business in terms of marketing spend.

Speaker #3: So basically, as we mentioned before, in Colombia we're in a bit of a wait-and-see mode. We're not spending much on marketing. It's the same in Argentina, I would say.

Speaker #3: So in Panama and Spain, basically, we are in that those type of ballparks that we're talking about in terms of perhaps we could be considered more of a stable state type of marketing level.

Speaker #3: Whilst in Mexico is where we're spending more marketing, no? So the answer to the question lays principally in Mexico, no? And how we manage that level of marketing.

Speaker #3: It has come down significantly over the past years and quarters. And so there is a bit of a two different sides to the company and the business, no?

Speaker #3: In terms of marketing spend. Just so you know a little bit where the pressure points are.

Marcus Arildsson: Just so you know a little bit where the pressure points are.

Speaker #5: That's extremely helpful, so thank you very much for that. My next question is going to be about Spain. I mean, Spain is a mature, regulated market, and I was just surprised that you guys were able to generate almost 25% growth.

Arthur Rulak: That's extremely helpful, thank you very much for that. My next question is going to be Spain, is a mature, regulated market. I was just surprised that you guys were able to generate almost 25% growth. Can you talk a little bit about how you've been so successful there?

Arthur Roulac: That's extremely helpful, thank you very much for that. My next question is going to be Spain, is a mature, regulated market. I was just surprised that you guys were able to generate almost 25% growth. Can you talk a little bit about how you've been so successful there?

Speaker #5: Can you talk a little bit about how you've been so successful there?

Aviv Sher: Yes. We are very good at what we are doing. No. I'm kidding. I'll tell you what. I think there are a few factors. Probably one of the factors is that the market itself grows double digits, we enjoy that. I think we are growing more than the market at this stage. We managed over the past year, this can be quoted, to stabilize better the platform. AI here, because I didn't hear any questions about AI throughout the whole session, AI here, in terms of technology, helped us a lot, to achieve stability that we were seeking for a long time in order for us to execute our plans and maintain our players and build the player value around it. This helped a lot in Spain, these past two quarters.

Speaker #2: Yes, we are very, very good at what we are doing, no? I'm kidding. I'll tell you what—I think there are a few factors.

Speaker #2: Probably one of the factor is that the market itself grows double digits. So we enjoy that. I think we are growing more than the market at this stage.

Speaker #2: We manage over the past year and this can be quoted to stabilize better the platform. AI here because I didn't hear any questions about AI throughout the whole session, but AI here in terms of technology helped us a lot to achieve stability that we were seeking for a long time.

Speaker #2: In order for us to execute our plans and maintain our players, and build the player value around it, this helped a lot in Spain these past two quarters.

Speaker #2: So basically, we are enjoying a fruits of very long investment that we've made into Spain with the brand. And now with the stability of the market, we are able to produce good player value finally in the last couple of quarters.

Aviv Sher: Basically, we are enjoying a fruit of a very long investment that we've made into Spain with the brand. Now with the stability of the market, we are able to produce good player value finally in the last couple of quarters, and I hope going forward, we will be able to produce even more. Having said that, I just need to comment that regulation in Spain is still lashing back, if I can say. We'll still have some more regulation bumps coming ahead of us in the future. Not a lot. I don't think it will affect us a lot, but still some regulation changes around the VIP and joint deposit limits that are coming into force. I think we can overcome them and continue this very good growth.

Speaker #2: And I hope going forward, we will be able to produce even more. Having said that, I just need to comment that regulation in Spain still lashing back, if I can say.

Speaker #2: We still have some more regulation bumps coming ahead of us in the future. Not a lot. I don't think it will affect us a lot, but still some regulation changes around the VIP and joint deposit limits that are coming into force.

Speaker #2: But I think we can overcome them and continue this very good growth. Plus the fact of what I mentioned before, that a lot of our excess EBITDA, we put back into Spanish market.

Aviv Sher: Plus, the fact of what I mentioned before, that a lot of our excess EBITDA we put back into Spanish market and able to produce good results. We continue to buy new players that stay with us and produce high player value.

Speaker #2: And able to produce good results. So we continue to buy new players that stay with us and produce high player value.

Arthur Rulak: As you look out in terms of your balance sheet, I assume you have some sort of stock buyback in place and you haven't hit your numbers. You're trading at one-time revenue. Rush Street and Super Group are trading at, I think, four and two and a half times. You guys are growing faster than them on a revenue perspective. Is there a thought to bump up that level of buyback, or are you looking to go after a license in Argentina? I don't know how close Uruguay is. Obviously, the parent company is very big in Uruguay. Can you talk a little bit more about that? Because cash was, we put EUR 20 million, or EUR 21 million of cash on the balance sheet. It's almost $25 million. Stock's only at nine and change.

Speaker #5: And as you look out in terms of your balance sheet, I assume you have some sort of stock buyback in place and you haven't hit your numbers.

Arthur Roulac: As you look out in terms of your balance sheet, I assume you have some sort of stock buyback in place and you haven't hit your numbers. You're trading at one-time revenue. Rush Street and Super Group are trading at, I think, four and two and a half times. You guys are growing faster than them on a revenue perspective. Is there a thought to bump up that level of buyback, or are you looking to go after a license in Argentina? I don't know how close Uruguay is. Obviously, the parent company is very big in Uruguay. Can you talk a little bit more about that? Because cash was, we put EUR 20 million, or EUR 21 million of cash on the balance sheet. It's almost $25 million. Stock's only at nine and change.

Speaker #5: I mean, you're trading it one time revenue rush street and super group or trading it, I think, four and two and a half times.

Speaker #5: You guys are growing faster than them on a revenue perspective. Is there a thought to bump up that level of buyback or are you looking to go after a license in Argentina?

Speaker #5: I don't know how close Uruguay is ready. Obviously, the parent company is very big in Uruguay. Can you talk a little bit more about that?

Speaker #5: Because cash was we think we put 20 million 21 million euros of cash on the balance sheet. It's almost 25 million US stocks only at 9 and change.

Speaker #5: So can you talk a little bit more about the allocation and what your what you're thinking there?

Arthur Rulak: Can you talk a little bit more about the allocation and what you're thinking there?

Arthur Roulac: Can you talk a little bit more about the allocation and what you're thinking there?

Speaker #3: Well, I mean, as I mentioned a little bit during the prepared remarks, we are actively exploring opportunities to do exactly what you're mentioning—looking at different markets in South America where there are opportunities to enter the market.

Marcus Arildsson: Well, as we mentioned a little bit during the prepared remarks. We are actively exploring opportunities to do exactly what you're mentioning, looking at different markets in South America where there are opportunities to enter the market. As you mentioned, Uruguay, Chile, et cetera, that are putting in place regulation where it comes to timing-wise a good point to make a move. We have several of those conversations that are ongoing. Depending on the setup, if you acquire a license, maybe some other markets, you just need to fulfill the requirements and there's no real cash up front that needs to be paid. Obviously, as you enter into a market, you will need to spend money on establishing the business brand, et cetera. Whether there is a certain other opportunity we're looking at, there is pure acquisitions. There's a range of different alternatives.

Speaker #3: As you mentioned—Uruguay, Chile, et cetera, et cetera—they are putting in place regulation. When it comes to timing, it seems like a good point to make a move, no?

Speaker #3: So that's why we have several of those conversations that are ongoing. Depending on the setup, if you acquire a license, maybe in some other markets you just need to fulfill requirements, and there's no real cash upfront that needs to be paid.

Speaker #3: But obviously, as you enter into a market, you will need to spend money on establishing the business brand, et cetera, et cetera. Or whether there's a in certain other opportunity we're looking at, there's pure acquisitions.

Speaker #3: So there's a range of different alternatives. And then in parallel, of course, as you mentioned, we have the share buyback provenance, which we have in place.

Marcus Arildsson: In parallel, of course, as you mentioned, we have the share buyback program, which we have in place. As you mentioned, we haven't hit our numbers, so to speak, and so there have been no shares that have been repurchased so far this year. We expect to continue to manage these in parallel. In terms of just size, I would imagine that if we speak in a year's time from now, I would imagine that the M&A side we will allocate more money through that channel, so to speak, than the share buyback program. That would be sort of just broadly speaking, I think our expectations. I don't know, Aviv, if you have anything to add.

Speaker #3: As you mentioned, we haven't hit our number, so to speak. And so there'd be no shares that have been repurchased so far this year.

Speaker #3: But we expect to continue to manage these in parallel. In terms of just size, I would imagine that if we speak in a year's time from now, I would imagine that the M&A side will be we will allocate more money through that channel, so to speak, than the share buyback program.

Speaker #3: So that would be sort of just probably speaking I think our expectations. I don't know if you have anything to add.

Speaker #2: No, I think all of the things that you've mentioned out, we are discussing in the board level and trying to find the correct path.

Aviv Sher: I think all of the things that you mentioned, Art, we are discussing in the board level and trying to find the correct path. As I said, I think in previous remarks, we really hope that some of the initiatives that we want to take will materialize soon, and we can use the cash. All of the things that you said are on the table. I just want to comment in terms of our share price. I think part of the game that we cannot play against the, let's call it the more, the bigger one, Rush Street or Super Group, is liquidity. I think we suffer from a lack of liquidity, and this affects our share price. Hopefully the buyback strategy can help with that a little bit. I think liquidity here is key.

Speaker #2: As I said, I think in previous remarks, we really hope that some of the initiatives that we want to take will materialize soon. And we can use the cash.

Speaker #2: But all of the things that you've said are on the table. I just want to comment in terms of our share price. I think part of the game that we cannot play against, let's call it the bigger one, rush street or super group is liquidity.

Speaker #2: I think we suffer from a lack of liquidity. And this affects our share price. And hopefully, the buyback strategy can help with that a little bit.

Speaker #2: But I think liquidity here is key. In terms of the company, I'm sure that our company performs well and should be evaluated more on the hopefully, we'll see it soon in the share price.

Aviv Sher: In terms of the company, I'm sure that our company performs well and should be evaluated more, and hopefully we'll see it soon in the share price.

Speaker #5: Thank you.

Arthur Rulak: Thank you.

Arthur Roulac: Thank you.

Speaker #2: Thank you out. You are helping us a lot with all those questions.

Aviv Sher: Thank you, Art. You are helping us a lot with all the questions.

Speaker #3: Thank you.

Marcus Arildsson: Thank you.

Speaker #1: If you would like to ask a question, please press star one to raise your hand. We have reached the end of the Q&A session.

Operator 2: If you would like to ask a question, please press star one to raise your hand. We have reached the end of the Q&A session. I will now turn the call back to Guillermo for closing remarks.

Operator: If you would like to ask a question, please press star one to raise your hand. We have reached the end of the Q&A session. I will now turn the call back to Guillermo for closing remarks.

Speaker #1: I will now turn the call back to Guillermo for closing remarks.

Speaker #2: Thank you. Thanks everyone for joining. If you have any follow-ups, feel free to reach out. And otherwise, we will be speaking again in mid-November with our Q3 results.

Guillermo Lancha: Thank you. Thanks everyone for joining. If you have any follow-ups, feel free to reach out. Otherwise, we will be speaking again in mid-November with our Q3 results. Thank you.

Speaker #2: Thank you.

Speaker #4: Thank you.

Aviv Sher: Thank you.

Speaker #3: Thank you.

Marcus Arildsson: Thank you.

Speaker #1: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 2: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Codere Online Q2 2026 Results. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Codere Online Q2 2026 Results. The line will disconnect automatically.

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