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CENTURY CASINOS INC /CO/ (CNTY)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $130.4M and diluted EPS was -$0.67; Adjusted EBITDAR was $20.2M with a 16% margin, essentially flat versus Q1 2024 despite severe weather, one fewer operating day, and the loss of high-margin Colorado sports betting revenue .
  • Results missed Wall Street consensus: revenue $130.4M vs $139.6M*, EPS -$0.67 vs -$0.53*, EBITDA $19.5M* vs $21.4M*; management pointed to weather, leap year, and sports betting headwinds (~$2M EBITDAR impact) as key drivers .
  • Strategic positives: Caruthersville (MO) delivered strong ramp with revenue and EBITDAR up 25% and 31% in its first six months; Nugget (NV) turned positive EBITDA in a typically weak quarter, aided by cost actions .
  • 2025 capital intensity drops materially (target ~$4M growth and ~$14M maintenance), with management expecting improved cash generation and a potential single-digit million-dollar share repurchase before early August, and leverage ratios trending lower by year-end .

Note: Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Caruthersville ramped strongly: “In the 6 months since opening, revenue and EBITDAR are up 25% and 31%... running at a 43% EBITDA margin” (management expects further margin improvement as staffing is optimized) .
  • Cost discipline delivered a turnaround at Nugget: “EBITDA was turned around from a negative last year to a positive $700,000 this quarter... cost-cutting measures proved successful” .
  • Consolidated Adjusted EBITDAR margin held at 16% despite revenue headwinds, driven by successful cost-cutting at Nugget and initial success of the new Caruthersville casino .

What Went Wrong

  • Revenue and EPS missed consensus amid “decreased revenue from weather impacts throughout North America, one fewer operating day compared to 2024 and the loss of high margin sports betting revenue in Colorado” .
  • Canada and Poland declined YoY: Canada net operating revenue down 10% and Poland down 5% YoY; consolidated net loss widened to -$20.6M (vs -$13.5M last year) .
  • Interest burden remains heavy: net interest expense was $25.7M in Q1; lease-adjusted leverage about 7.6x, with management focused on repricing/refinancing term loan (SOFR + 600) and debt paydown .

Financial Results

Consolidated performance vs prior year and prior quarter

MetricQ1 2024Q4 2024Q1 2025
Net Operating Revenue ($USD Millions)$136.017 $137.766 $130.443
Earnings from Operations ($USD Millions)$8.287 $(36.154) $7.140
Net Loss Attributable to CNTY Shareholders ($USD Millions)$(13.544) $(64.894) $(20.613)
Diluted EPS ($USD)$(0.45) $(2.11) $(0.67)
Adjusted EBITDAR ($USD Millions)$21.250 $21.078 $20.155
Adjusted EBITDAR Margin %16% 15% 16%
Net Loss Margin %(10%) (47%) (16%)

Q1 2025 actuals vs Wall Street consensus (S&P Global)

MetricActual Q1 2025Consensus Q1 2025
Revenue ($USD Millions)$130.443 139.554*
Diluted EPS ($USD)$(0.67) $(0.53)*
EBITDA ($USD Millions)19.534*21.384*

Note: Values retrieved from S&P Global.

Segment breakdown – Net Operating Revenue

SegmentQ1 2024 ($USD Millions)Q1 2025 ($USD Millions)
United States$96.034 $93.296
Canada$18.321 $16.516
Poland$21.649 $20.631
Corporate & Other$0.013 $0.000
Consolidated$136.017 $130.443

Segment breakdown – Adjusted EBITDAR

SegmentQ1 2024 ($USD Millions)Q1 2025 ($USD Millions)
United States$19.146 $18.398
Canada$5.141 $4.360
Poland$0.757 $0.546
Corporate & Other$(3.794) $(3.149)
Consolidated$21.250 $20.155

KPIs and balance sheet

KPIQ4 2024Q1 2025
Cash and Cash Equivalents ($USD Millions)$98.8 $84.7
Total Debt Outstanding ($USD Millions)$339.6 $339.6
Master Lease Financing Obligation ($USD Millions)$701.0 $703.5
Cash Rent Payments – Master Lease ($USD Millions)$14.005 $14.327
Cash Rent Payments – Nugget Lease ($USD Millions)$1.912 $1.913
Net Debt-to-EBITDA (x)5.5x 6.9x
Lease-adjusted Net Debt-to-EBITDA (x)6.9x 7.6x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total CapExFY 2025~$16M (raised from $12M due to Nugget elevators) ~$18M ($4M growth + ~$14M maintenance) Raised
Share Repurchases2Q–3Q 2025“Start late 2024/early 2025, opportunistic” “Start between now and early August with single-digit million $ volume” Clarified/increased specificity
Leverage TargetsFY 2025 YEAim to delever to ~3x traditional and ~5x lease-adjusted next year Expect well below 6x (traditional) and below 7x (lease-adjusted) by YE 2025 Maintained with cautious tone
Missouri Sports Betting2025 launchFinalizing partnership agreements BetMGM partnership executed at Cape Girardeau (pending approvals) Executed
Poland footprint2025Reopened Wroclaw; sale progressing Awarded 2nd license in Wroclaw; opening expected 4Q 2025 Expanded
Cash Generation OutlookRemainder of 2025–2026FCF improvement from CapEx reduction “Anticipate cash generation and cash position to improve during the remainder of 2025 and into 2026” Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Consumer mix (low-end vs mid/high)Low-end weak; rated flat, non-rated down ; low-end weak, mid/upper tiers performing Carded gaming +1%; uncarded -2.5%; low-end remains weak Stable weakness at low-end
Weather impactAnticipated unfavorable winter weather for Q1 Severe weather/one fewer day; March EBITDAR $10.5M (up 8% YoY) Improving into March/April
Missouri (Caruthersville, Cape G.)Caruthersville opened Nov 1; Cape hotel expanding reach Caruthersville +25% rev, +31% EBITDAR in 6 months; Cape EBITDA margin 36% Strengthening
Nugget Reno turnaroundSequential improvement; cost control; EBITDA doubled vs Q2 Positive $0.7M EBITDA; locals +6%; Winners’ Zone launched Apr 1 Improving
Poland licensing & divestitureReopened Wroclaw; sale progressing Second Wroclaw license; opening planned 4Q 2025; sale could conclude in 2025 Progressing
Sports betting/iGamingMO partnerships in progress ; Canada iGaming uncertain MO partnerships “finalizing”; BetMGM deal signed; Alberta database sharing potential Advancing
CapEx/FCF2025 CapEx ~$16M; buybacks planned $4M growth + $14M maintenance; expect FCF improvement Maintained

Management Commentary

  • “We were able to maintain the Adjusted EBITDAR margin from the first quarter of 2024 despite decreased revenue from weather impacts... and the loss of high margin sports betting revenue in Colorado... This is due primarily to successful cost cutting strategies at the Nugget... and the initial success of the new Caruthersville casino” — Co-CEOs Haitzmann & Hoetzinger .
  • “Overall, we estimate the impact... of weather, leap year and the partial loss of sports betting revenue in Colorado to be around $2 million [EBITDAR] this quarter compared to last year Q1” .
  • “At the end of the quarter, our net debt-to-EBITDA ratio was 6.9x and 7.6x on a lease-adjusted basis... We expect these ratios to go down towards the end of the year” .
  • “We think we'll start [share repurchases] between now and our next earnings release in early August... with a single-digit million dollar value volume” .
  • “We are finalizing partnership agreements [in Missouri]... which should deliver incremental high-margin EBITDAR” ; BetMGM partnership confirmed on May 27 .

Q&A Highlights

  • Canada outlook: Management does not see material consumer softening; Q1 revenue pressure was more about weather and one fewer gaming day .
  • Rocky Gap growth initiatives: Renovations in F&B, beach access, and expanded marketing into Baltimore/DC to broaden catchment and higher-net-worth overnight guests .
  • Outlook/leverage: Despite March/April improvement, management is cautious given uncertainty; still targeting lower leverage by year-end .
  • Alberta online gaming: Potential to monetize via database-sharing with regulator; not planning to operate directly; sports betting opportunities contemplated .
  • Poland divestiture timeline: Management believes 2025 is feasible but notes past delays; interest from sports-betting-oriented buyers .
  • Cost optimization in East: Ongoing self-help and cost workstreams at Rocky Gap and Mountaineer .

Estimates Context

  • Q1 2025 missed consensus: revenue $130.4M vs $139.6M*, EPS -$0.67 vs -$0.53*, EBITDA $19.5M* vs $21.4M*. Management attributes the miss primarily to severe weather, one fewer operating day, and reduced Colorado sports betting revenue (~$0.5M impact), with March normalizing .
  • With Caruthersville and Cape Girardeau ramping and Nugget improving, estimates may need to balance continued low-end consumer weakness against cost actions and new catalysts (MO sports betting partnership) .

Note: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Weather and calendar headwinds masked improving March/April trends; normalized run-rate looks stronger than headline Q1 suggests .
  • Missouri is a key growth engine: Caruthersville’s 6-month ramp and Cape’s hotel-driven mix help offset softness elsewhere; MO sports betting is an incremental high-margin tailwind (BetMGM deal) .
  • Cost discipline is working at Nugget; sequential EBITDA improvement and local engagement initiatives support continued recovery .
  • 2025 capex collapse and prospective share repurchases create near-term FCF and technical support; management intends single-digit million buybacks pre-August .
  • Leverage still elevated but trending lower; refinancing/repricing of the term loan (SOFR + 600) is a priority alongside debt paydown .
  • Canada and Poland remain mixed; licensing progress in Poland strengthens sale narrative; watch FX and license dynamics in Canada .
  • Near-term trading: Monitor monthly cadence (March/April gains), share repurchase execution, Missouri sports betting milestones, and any refinancing updates as catalysts .