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CENTURY CASINOS INC /CO/ (CNTY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net operating revenue was $150.8M, up 3% YoY, with earnings from operations of $16.6M (+16% YoY) and Adjusted EBITDAR of $30.3M (+10% YoY). Net loss improved materially to ($12.3M), or ($0.40) per share, versus ($41.6M) and ($1.36) in Q2 2024 .
  • Versus S&P Global consensus, Century Casinos delivered a revenue beat (+$2.1M, +1.4%) but an EPS miss (actual EPS -$0.40 vs -$0.36 consensus); management emphasized broad-based strength and improving lower-tier customer trends, with Missouri, Canada, and Poland contributing to year-over-year EBITDAR growth .
  • A comprehensive strategic review was initiated to explore alternatives including asset divestitures, partnerships, capital structure optimization, or a potential sale of the company—Macquarie Capital and Faegre Drinker engaged—creating a potential stock catalyst .
  • Balance sheet trends improved: cash ended Q2 at $85.5M (vs. $84.7M in Q1), total debt was $338.1M, and net debt/EBITDA fell to 6.2x from 6.9x in Q1; no maturities until 2029. The company repurchased 428,734 shares at an average price of $2.12 and expects further buybacks if permitted .

What Went Well and What Went Wrong

  • What Went Well

    • Caruthersville, MO continued strong performance since the November 1, 2024 opening: net operating revenue +26% and Adjusted EBITDAR +31% vs pre-opening period; Q2 EBITDAR was ~$6.1M with a 43% margin, supported by expanded reach (75+ mile visitors +41%) and younger demographics .
    • Poland rebounded: Q2 net operating revenue +23% YoY and Adjusted EBITDAR up 332% to $1.9M; management expects operations to normalize beginning Q4 2025 and is progressing toward a divestment LOI with a new party .
    • Balance sheet and cash flow: Q2 cash increased to $85.5M despite ~$5.8M CapEx and $1.0M buybacks; net debt/EBITDA improved to 6.2x from 6.9x; “harvesting” phase with reduced CapEx, targeting ≤$20M in 2025 .

  • What Went Wrong

    • Nugget Casino Resort underperformed: Q2 EBITDA decreased to ~$2.3M due to poor concert ticket sales affecting gaming, F&B, and hotel; management is refining loyalty, pricing, and events to drive recovery .
    • Weather headwinds persisted (Rocky Gap and Missouri/Illinois storms), limiting revenue recovery despite improved June/July trends; Rocky Gap saw slot revenue +9% in June and EBITDA +21%, but Q2 was still incrementally challenged .
    • EPS missed consensus despite operational improvements, reflecting ongoing interest expense (Master Lease and credit agreements) and non-operating items; Q2 interest expense (net) was $25.9M and cash rent under the Master Lease was $14.4M .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Net Operating Revenue ($USD Millions)$137.8 $130.4 $150.8
Earnings from Operations ($USD Millions)($36.2) $7.1 $16.6
Net Loss Attributable to CNTY ($USD Millions)($64.9) ($20.6) ($12.3)
Basic EPS ($USD)($2.11) ($0.67) ($0.40)
Adjusted EBITDAR ($USD Millions)$21.1 $20.2 $30.3
MarginsQ4 2024Q1 2025Q2 2025
Net Earnings (Loss) Margin (%)(47%) (16%) (8%)
Adjusted EBITDAR Margin (%)15% 16% 20%
Segment Net Operating Revenue ($USD Millions)Q4 2024Q1 2025Q2 2025
United States$100.0 $93.3 $106.1
Canada$17.9 $16.5 $20.0
Poland$19.9 $20.6 $24.7
Corporate & Other$0.0 $0.0 $0.0
Consolidated$137.8 $130.4 $150.8
KPIsQ4 2024Q1 2025Q2 2025
Cash and Cash Equivalents ($USD Millions)$98.8 $84.7 $85.5
Total Debt Outstanding ($USD Millions)$339.6 $339.6 $338.1
Cash Rent – Master Lease ($USD Millions)$14.0 $14.3 $14.4
Cash Rent – Nugget Lease ($USD Millions)$1.9 $1.9 $1.9
Q2 2025 Actual vs S&P Global ConsensusConsensusActual
Revenue ($USD)$148.7M*$150.8M
Primary EPS ($USD)($0.364)*($0.40)

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total CapExFY 2025~$18M ($4M growth + ~$14M maintenance) ≤$20M; ~$10M spent H1 Slightly raised/clarified
Sports Betting (MO) LaunchQ4 2025“End of year” target; partnerships finalizing BetMGM signed; online/mobile expected to begin in Q4 (December) Firmed timeline/partner
Leverage (Net Debt/EBITDA)FY 20256.9x at Q1; aim well below 6x by YE 6.2x at Q2; expected to decline further Improved trajectory
Share Repurchases2025Single-digit $M intended near-term 428,734 shares repurchased at $2.12; may continue if permitted Executed; ongoing
Poland Divestment2025Expected 2025 conclusion; active discussions New party; LOI expected; exclusivity forthcoming Process advanced
Debt MaturitiesN/ANo maturities until 2029 Reiterated Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Strategic ReviewNot disclosed in Q4; Q1 focused on FCF and buybacks Formal process launched; Macquarie and Faegre Drinker engaged; exploring asset sales/partnerships or sale of company New catalyst
Caruthersville MOOpened Nov 1, 2024; strong uplift in first months Revenue +26%, EBITDAR +31% since opening; Q2 EBITDAR ~$6.1M, 43% margin Up and expanding reach
Consumer TrendsQ1: lower-tier returning since mid-March; cautious optimism Continued improvement in June/July; broader strength incl. retail/lower-end Improving
Nugget (Reno-Sparks)Q4 goodwill impairment; Q1 cost cuts, positive EBITDAR Q2 concert underperformance; loyalty/pricing/events to recover; rooms trending up for Aug Mixed, improving bookings
PolandLicense renewals disrupted 2024; got 2nd Wroclaw license in Q1 Q2 revenue +23%; LOI with new buyer expected; normalize from Q4 Operational and strategic progress
Sports Betting (MO)Q1: launch late 2025; finalizing partners BetMGM signed; December go-live expected; retail sportsbook options Advancing
CapEx/FCFQ4: investment cycle ending; Q1: minimal CapEx in 2025 ≤$20M CapEx in 2025; harvest phase driving FCF Lower CapEx, higher FCF
Loyalty/TechnologyQ1: Winners’ Zone launch at Nugget Competitive multipliers and new comp buckets at Nugget Enhancing customer incentives

Management Commentary

  • “We announced strong second quarter results this morning. Both revenue and adjusted EBITDA[R] were all time records for a second quarter… EBITDAR came in at $30,300,000… a 10% increase over Q2 of last year” .
  • “We have initiated a strategic review process… to optimize our portfolio and operations” (Co-CEOs Haitzmann and Hoetzinger) .
  • “Our cash and cash equivalents at the end of the quarter were $85,500,000… net debt to EBITDA ratio improved from 6.9x… to 6.2x” .
  • “Sports betting is expected to go live in Missouri in December… we expect meaningful contributions in 2026” .
  • Rocky Gap showed “a clear turnaround… June slot revenue +9%… EBITDA +21%” with July trending positively .

Q&A Highlights

  • Rocky Gap margin resilience despite weather: improved slot revenue and hotel utilization; granular marketing strategy and product upgrades (beach, facade) supporting better occupancy and spend .
  • Capital allocation: Buybacks executed under a 10b5-1 plan; balancing limited repurchases with opportunistic debt refinancings; larger debt reduction contingent on potential Poland proceeds .
  • Poland: YoY growth driven by license timing and openings; divestment LOI with a new party expected imminently .
  • Nugget outlook: Conferences constrained in 2025 due to long lead times; improving retail room bookings (+32% projected for August), rate activity, loyalty program enhancements .
  • Long-term target: $150M EBITDAR remains reasonable, contingent on further recovery in retail/lower-end customers and interest rate tailwinds .

Estimates Context

  • Q2 2025 revenue beat: Actual $150.8M vs consensus $148.7M* (+1.4%); primary EPS missed: actual ($0.40) vs consensus ($0.364)*. Management cited strong core play, broader customer improvements, and Missouri/Canada/Poland contributions as drivers of top-line strength .
  • Looking forward, Street models show Q3 2025 revenue $158.8M* and EPS ($0.227), with EBITDA ~$31.5M, reflecting continued normalization; management expects leverage ratios to decline further and no major competitive supply additions in 2025–2026 .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q2 delivered a clean revenue beat and margin expansion; EPS miss reflects heavy non-operating burden (lease and debt service) rather than core operational weakness .
  • Strategic review introduces upside optionality (asset sales/partnerships/company sale) amid improving fundamentals—monitor milestones (LOI signings, divestments) .
  • Missouri assets are compounding: Caruthersville’s new hotel/casino is expanding reach and demographics; BetMGM launch in Q4 adds incremental, high-margin contribution in 2026 .
  • Nugget requires patience: near-term catalysts include improved event calendar, loyalty upgrades, and pricing actions; bookings for August are strong, but execution remains key .
  • Leverage trending down with reduced CapEx and better cash generation; no maturities until 2029 allows room to optimize capital structure and opportunistically buy back shares .
  • Poland is both an earnings recovery story (licenses resuming) and a strategic monetization opportunity—exclusivity/LOI could accelerate deleveraging .
  • Near-term trading: strategic review headlines and continued Missouri/Poland momentum are likely positive catalysts; watch for EPS trajectory vs. Street and proof points at Nugget.