Ladies and gentlemen, thank you for joining us and welcome to the Cold Air Online First Quarter 2026 Financial Results presentation. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press start one on your telephone keypad to raise your hand. I will now hand the conference over to Guillermo Lancia, Director of Investor Relations and Communications at Cold Air Online. Please go ahead.

Thanks, Operator, and welcome everyone to Codere Online's earnings call for the first quarter of 2026. Today, you will hear from our CEO, Aviv Sher, and CFO, Marcus Arilson. Our executive vice chairman, Moshe Edre, will also join us in the Q&A session. 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 coderionline.com where investors can also sign up for email alerts. Additionally, I would like to draw your attention to our recently filed annual report where you can find detailed financial and other information regarding the company. With that, I will go ahead and pass the call on to Aviv.

Thanks, Guillermo, and thank you all for joining us today. We are very pleased with how we started 2026 delivering a solid first quarter that reflects continued momentum in the business and good execution across our key markets, despite a still demanding operating and regulatory environment. Starting with the highlights for the first quarter of 2026 on page 8, we delivered a consolidated net gaming revenue of $64.4 million, which represents a 13% increase versus first quarter of last year and 6% sequentially. This growth was supported by healthy underlying trends across both casino and sports betting and confirms that the top-line re-acceleration we saw in the second half of 2025 has carried into the new year. Looking at the revenue mix, Casino once again accounted for the majority of our net revenue in the quarter, representing 63% of the total, with the remaining 37% coming from sports betting. This mix is very consistent with the recent quarters and continues to reflect the importance of Casino as a key engagement and growth driver for our business. Turning to the operating KPIs, performance in this quarter was driven by further expansion of our active customer base. Average monthly active customers reached approximately 183,000 in Q1, which is 14% higher than the same period last year. This reflects continued strength in acquisition combined with a solid retention across our portfolio. Average monthly spend per active customer was 117 euros, around 1% below Q1 of last year. As we have mentioned before, this is consistent with a broader and more diversified customer base and does not change our positive view on the quality and long-term value of the players we are acquiring. Although we will cover later, we are working to optimize our active customer base in Mexico. On the acquisition side, during the quarter, we have acquired approximately 90,000 FTDs at an average CPA of €212, which represents an increase both year-on-year and sequentially. and sequentially. This reflects a combination of more competitive marketing environment at the start of the year, particularly in our core markets, and deliberately shift in mix towards higher value cohorts and channels. As in prior periods, we remain disciplined in our approach and continue to prioritize customer quality, profitability, and lifetime value over short-term volume. With respect to capital allocation, we did not repurchase any shares under our share buyback plan during the first quarter. As a reminder, the program remains in place through the end of 2026, and we will continue to evaluate repurchases based on market condition and business priorities. Finally, looking ahead, our outlook for the full year of 2026 remained unchanged. We continue to guide net gaming revenue in the range of $235 million to $245 million and adjusted EBITDA between $15 million to $20 million. This guidance reflects both the strong start of the year and our prudent approach to planning, taking into account the regulatory and tax environment in our markets. As always, we will continue to assess performance as the year progresses, and if current trends and execution remain consistent, we would expect to visit our outlook after the first half of the year. Overall, we remain confident that our ability to deliver continued growth in both revenue and profitability in 2026. With that, I will now hand the call over to Marcos to walk you through the financial performance in more details.

Thanks, Aviv. And hello, everyone. If we turn to slide 10, you can see our consolidated net gaming revenue and adjusted EBTA performance by country for the first quarter of 2026. Starting with NGR, in Q1, we delivered 64.4 million, representing, as Aviv mentioned, 13% year-over-year increase compared to the first quarter of 2025. Driven primarily by our two core markets, Spain and Mexico, both which delivered solid performance. This also represented a 6% sequential increase versus an already very strong fourth quarter of 2025. In Spain specifically, NGR increased by 3.6 million year over year to 20.5 million euros, representing a growth of 16.4%, and reflected a continued strong underlying trend. in mexico ngr revenue grew by 4.1 million to 34.6 million euros an increase of 13.4 percent versus q1 of last year which further consolidates mexico as our largest market and the key growth driver in other markets which include as you know colombia panama and the city of buenos aires we generated 4.4 million of net gaming revenue in the quarter broadly stable year over year As expected, growth in these markets remained more volatile and continues to represent a smaller portion of the overall group, although we're seeing encouraging trends both in Panama and Colombia. Looking at the last 12 months, net gaming revenue reached $231.6 million, up $7.3 versus the prior period. Spain and Mexico continue to account for the vast majority of the business, together representing over 93% of LTM net gaming revenue, with Mexico contributing approximately 53% and Spain approximately 41%. This strong top-line performance translated into a further step up in profitability. In Q1 2026, we delivered adjusted EBTA of 6 million euros, compared to 1.8 million in the first quarter of last year. Spain contributed $7 million of adjusted EBTA in the quarter, up 27% year-over-year, reflecting continued operating leverage, while Mexico delivered $2.9 million of adjusted EBTA, also representing an increase of over 60% year-over-year as the country continues to inflict towards profitability. Our undistributed and headquarter costs were slightly lower in the quarter at 5 million euros, despite the increase in revenues, reflecting ongoing cost discipline and operating leverage as the business scales. On an LTM basis, adjusted EBTA reached 18 million compared to 6.5 million a year ago, which already positions us in the upper part of our outlook range for the full year. overall the first quarter shows a solid start to the year with continued revenue growth in our core markets and further improvements in profitability consistent with the outlook aviv mentioned earlier turning to our consolidated pnl on page 11 marketing spends was 25 million in the quarter 1.2 million above q1 of last year but noteworthy it was three percentage points lower as a percentage of ngr the rest of our operating expenses namely platform and content costs gaming taxes and personnel were in line if not below the growth in ngr resulting in adjusted ebta of six million in the quarter this translated into an adjusted ebta margin of around nine percent compared to three percent in the first quarter of 2025. now turning to page 12 we can see that the operating trends behind our q1 performance ngr increased 13 year on year supported primarily by a continued expansion of our of our active customer base average monthly actives reached approximately 183 000 players in the quarter up 14 compared to q1 as of last year this increase in player engagement was primarily driven by improvements in retention and reactivation of players as acquisition remained flat at around 90 000 ftds in line with recent quarters the cost per acquisition increased approximately 212 euros in the quarter as discussed earlier this reflects both the more competitive start to the year and a conscious shift towards higher value channels and cohorts turning to page 13 and spain net gaming revenue in the first quarter of 2026 was 25.5 million euros up 16 percent versus q1 2025 and four percent sequentially this was a result of a 13 increase in the number of active customers to approximately 59 000 players with spain being a more mature and tightly regulated market especially in terms of advertising we're pleased to continue to growing our portfolio of customers while maintaining a strong profitability moving now to mexico on page 14 net gaming revenue in the country increased by 13 year on year in the first quarter of 2026 reaching 34.6 million growth in the quarter was primarily driven by a continued expansion of the active customer base which increased by approximately 20 year on year to around 98 98 000 average monthly actives this more than offset the lower average spend per active customer reflecting the broader more diversified player base we're continuing to build in the market on a sequential basis active customer levels were slightly lower compared to the fourth quarter and have continued to decline into the second quarter of 2026 this was expected and reflects the implementation of tighter promotional rules aimed at reducing the participation of bonus hunters who were taking advantage of short-term promotions. While these players had limited impact on net gaming revenue, they, so to speak, polluted our customer database and made segmentation more complex. We view this as a positive step that improves the overall quality and sustainability of our customer base as we head up into the World Cup coming up in the coming months. Overall, Mexico remains a key growth driver for Kuderia Online. We continue to invest in expanding our customer base improving the product and customer experience and leveraging our scale at the same time we're being selective and disciplined in our marketing investments for example we have recently secured an opportunistic content partnership with a leading television broadcaster that provides brand exposure immediately following goals during football games this has been very effective in terms of reach and visibility And this approach reflects our focus on pursuing efficient, high-impact opportunities, rather than chasing more expensive and increasingly crowded World Cup-related content that we're currently seeing across the market. And it supports our continued focus on marketing efficiency and return on investment. Now, on page 15, looking at the balance sheet briefly, we closed the quarter with 56 million euros of total cash on the balance sheet, of which approximately 51 million euros was available. As in prior quarters, our structural negative working capital prison remained in line at 22 million or approximately 10% of our LTM net gaming revenue and supported the cash generation we have seen in the quarter and that we expect going forward. Looking at cash flow on page 16, we generated 6.5 million of cash flow in the first quarter 2026. Please note that this quarter, we're breaking down how much available cash was generated or used by decreases or increases, respectively, in reserved cash. This was previously included within changes in working capital. Overall, we continue to see an encouraging trend, not only in delivering positive adjusted EBTA, but also in converting most of it into cash flow. Having said that, the precise timing of certain cash flow items can impact the cash generation in any given quarter. Although, you know, across several quarters, this tends to even out. As a result, our available cash as discussed was 51 million euros at the end of March. Very briefly on page 18, we are maintaining our 2026 net gaming and adjusted EBJ outlook. As I've mentioned, we're off to a strong start of the year and we are comfortable in our ability to meet it. As opposed to last year, in 2026, we're enjoying some tailwinds, for example, in the Mexican exchange rate or in the Colombian gaming tax, which is more favorable this year and is helping us grow again our top line. If these trends and our strong execution in Spain and Mexico holds into the second quarter, we would expect to revisit our outlook with our second quarter results. That's all from my end. I will now hand it back to Aviv for closing remarks.

Thank you, Marcus. Before we move on to the Q&A session, I would like to thank all Kodere Online employees for their hard work in delivering a great start of the year. I would also like to thank the investors and analysts joining us today for their ongoing support and interest in Kodere Online.

With that, I will now hand the call back to the operator to open the line for questions. we will now begin the question and answer session if you would like to ask a question please press start one to raise your hand to withdraw your question press start one again please stand by while we compile the q a roster your first question comes from the line of jeffrey stanchel with stifle your line is now open please go ahead good morning this is aiden young's on for jeff stanchel thanks for taking our question so starting off on guidance if you look back historically it looks like q1 is typically one of the weakest quarters in terms of adjusted ebitda seasonality and then

this year you have the benefit of the world cup coming in q2 and q3 so marcus can you help us think about the bridge from that six million of ebitda you generate in q1 to the 15 to 20 for the year is it mostly marketing investment around the world cup or how should we bridge those two Well, I mean, it's undoubtedly we've come up to a very strong start during the first quarter.

And our full year forecast is the 15 to 20 million that we have set out in the previous call as we began this year. The World Cup, in past World Cups and in past similar events, we haven't seen a tremendous amount of impact on NGR. We have seen an uplift and we expect that for this year as well. We expect an uplift in activity, but with a limited impact in NGR and on the financials. So, the World Cup is there. It's going to impact a few weeks in Q2 and a few weeks in Q3. But at this stage, we don't expect a very substantial impact on our figures.

Thanks for that. Turning to Mexico, it looks like steak recently entered the market. Can you update us on the competitive environment there and whether you're seeing any upward pressure to CAC heading into the World Cup?

Well, we saw the announcements of stake coming into the market. We didn't see them, for example, yet on TV or on Google PPC. I'm sure they will come strong on that. But at the moment, we are not seeing any of that. some of our competitors are still down since late last year as you all know but other than that we continue our activities as usual continue to grow continue to grow the database and the customer base I don't think it has anything to any pressure on our CAC or LTV the opposite I think it helps us a little bit and And for us, we continue to comply with all regulations, all the taxes, everything required in Mexico to keep operating smoothly as before and to continue and deliver the results that you'll see.

Great. Thank you. And if I could just squeeze in one more, can you update us on the implementation of AI into your processes? Where have you been able to see some benefits and how do you think about that as a potential impact to the model, whether through cost mitigation or revenue-enhancing initiatives?

Listen, to be honest, at the moment in the core business, we did not implement AI. Everything else, all the supporting areas, whether it's the last employee, everybody's using it. As a process right now, we are not using it in the core business. We didn't see any AI trading benefits or anything like that that you can right now imagine or have seen in the news. We didn't see a working product yet. We are already using it in the customer service and maybe some outbound calls. We see good results. I think we need a couple of more quarters before we can say that we found something really interesting in that area. It does support our operation in the day-to-day. I think every employee, every few hours, requests another ChatGPT or cloud license. So it's not yet arrived to the core of the business, but in the surrounding, we are using it.

No, no, no, more than that. it's more sure we already engaged with Google Israel that they are like supporting us in implementing tools that related to Google advertising tools and they will start a process with us about implementing their tools into our system.

Yeah, but still early. I think two more quarters and we'll see something substantial.

Great. Thanks for the color. That's all from us. Pass it on.

Your next question comes from the line of Ryan Sigdahl with Greg Holland Capital Group. Your line is now open. Please go ahead.

Hey, good morning. This is Will on for Ryan. Thanks for taking our questions. First, I wanted to ask on Spain. You've had relatively strong performance there this quarter relative to what we've seen in prior years. Curious if you think this trend can continue and what you're seeing in terms of the competitive environment there.

Yes, I think in general, I think for the last few quarters, we are already reporting Spain that we see a growth that we see good results it's important to say that we also see that the market itself grows a lot at least from the regulator we saw last year a big growth in the market for the whole year we continue to push and optimize our customer acquisition to a higher value we continue with that we see good success with it We also enjoy a couple of quarters of strong technology stability, which allowed us to cruise through a few big games with good results. Also important to say in the first quarter, trading margin was favorable for us. A lot of surprises along the way. So we also enjoy a trading margin here.

But overall, we are very happy with the result in Spain. and yes we think it will continue with this trend and then just a quick follow-up on colombia i know it's relatively small exposure for you but with the removal of the 19 vat you've got a new 16 consumption tax onto that curious how you think of investment maybe there going forward and as well as if you're looking into any potentially new markets. Thanks.

Yeah, so basically the 16% tax allows us to continue and operate the current database that we have, which we did with, I think, very good success. We see it in the results, although it's part of the others' lines, but Colombia recovered quite nicely. Unfortunately, this current structure doesn't allow us to really invest again into marketing, only operate and reactivate the large database that we have. We are, like everyone, I think, waiting for the results, the political results of the elections that are coming by the end of the month and hopefully the political environment will change there and will be more favorable toward the business and then we will be able to invest. This is how we look at it. We are very encouraged by the results of activating the database which we thought would be harder but actually we did pretty well with that and I think if the business environment will change a little bit more or for example when they removed completely the 19% we were already ready to make new investments into Colombia and start considering it back as not as significant but as a separate market let's call it with a separate investment line and hopefully the business environment will change after the elections and then we can grow it faster than now regarding So regarding other markets, currently no plans for new markets.

I hope it goes in your favor. Thanks, guys.

As a reminder, to ask a question, please press start one on your telephone. Please raise your hand. Your next question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is not open. Please go ahead. Thank you. And thank you for taking the question.

I was just wondering in terms of, you know, this obviously was a great quarter in terms of an inflection for EBITDA. And I was just wondering, at what scale do you believe the business can consistently generate double-digit EBITDA margins? And I have a couple of follow-ups.

Can you repeat the question just to try to really get the gist of it? I was just wondering, in terms of what scale do you think the business can consistently generate double-digit EBITDA margins? yeah obviously as you know um one of the key key drivers of that is our marketing spend the remain the remaining cost items we haven't in pnl there are many of those like gaming taxes platform costs etc which are quite variable in nature and one of the most important spend line of course is marketing and as you know our strategy is to continue to grow the business but over time maturing to a lower percentage of NGR in terms of marketing spend. So we think to be able to get to a double-digit EBITDA margin, we need to probably be below 30% in terms of marketing as percentage of NGR. When do we get there? It has to be seen. I don't think we're in a position to make a forecast on it, but I think that's the way we see it. When we start to get marketing below, with the current cost structure we have, and as we're looking forward, when we start to be able to get marketing below 30%, that's when our EBTA margin can start to approach 20 or maybe go above 20, but in that range, no? So I think that's sort of, I'd say, how we look at it, just looking out a few periods.

I would maybe add to that, Mike, that as you know, our marketing investment is pretty much entirely discretional. So, you know, it's a bit also of a decision that we take as a management team to to sort of how much we want to keep on investing and if the priority was at some point to deliver that will be a bit either some that's something that we could do uh by reducing that investment but obviously what we are managing for is a sustainable growth in ebitda and for that percentage to decrease over time organically as a relative to ngr i think i think the key the key here is to balance right we are balancing between the revenues and the EBITDA as we see fit to generate the highest company value this is the goal here fair enough obviously you have

you know 56 million euros in cash and no debt and I was just wondering it in terms of how management's thinking about capital allocation priorities at this point how much cash does the management believe is necessary to support its growth you know and so if you could just talk a little bit about capital allocation at this point sure yes okay just uh let me let me add something marcus look hi it's marcia well so first and foremost as a public company we are we have guidelines by the board of directors and um our forecast based on the board of directors decision about the targets and dbda and um the organic organic growth that from time to time we're looking um if there's anything that we do with the cash that it's more than just marketing obviously up until now there was any there wasn't anything um substantial that uh we brought uh we brought to the board but uh um as you know it's not just about uh invest the money in marketing but it's also to keep the same ratio and the cuck of the investment and that's what we are keen for i mean that any additional dollar that we spend in in spain or mexico which is our like biggest markets and um the major markets that receive the same ratio of investment versus the roi on this investment and that that's how we're managing the cash now although it seems that it's uh quite liquid having like 50 million dollars euros in cash but um it's not um it's not still i would say a sufficient um amount that we will do anything that just in the order of investing it uh as you know as you know lately we we had like uh some some uh uh buyback uh process that we use some of this cash but other than that there isn't anything uh that uh we're looking at in terms of uh acquisition maybe just to thank motion maybe just add to that uh the cash we have obviously a very significant part of it is invested in the business it's working capital as you know

we operate in five markets we have a number of different payment alternative for our customers etc and so uh you know a very substantial portion of our cash is invested in the business and it's working capital and and it's not sort of say readily readily available i mean it's invested in the business and it's it's uh and there it is we are generating cash as you know uh so net we're adding to our cash uh as we speak so that's great news that we we uh we have turned the corner and we're we're adding to our position um and beyond the comments that uh that moshe mentioned of course we will look at and we are looking at certain expansion opportunities if and when opportunities come come around for either further investments in our current markets we will look at that and we can also contemplate uh you know entry into other markets but at this time i think um the important piece is to think about that yes we are we are generating cash to most of the cash today is invested in the business and uh as working capital but um you know as uh as the quarters go by we will amass a little bit more quarter or a little bit more cash and and one of the valves that we have to use that is to return to shareholders through our through our buyback and i think that's the the position we're in at at this stage perfect thank you for taking the question as a reminder if you would like to ask a question please press start one on your telephone

keypad to raise your hand that is star one on the telephone keypad to raise your hand please stand by while we compile the q a roster there are no further questions at this time i will now turn the call back to guillermo lancha director of investor relations and communications for closing remarks uh thanks derek um if there are no further questions i guess we will leave it here um uh if anyone has any follow-ups, you know where to reach us.

And if not, we will be talking again with our Q2 results by the end of July. Thanks. Thanks everyone for joining.

Thank you. This concludes today's call. Thank you for attending. You may now disconnect.