Sign in

You're signed outSign in or to get full access.

CC

CENTURY CASINOS INC /CO/ (CNTY)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 net operating revenue was $153.7M (-1% YoY) and Adjusted EBITDAR was $31.1M (-6% YoY); GAAP EPS was a loss of $(0.35) versus $(0.26) last year, with strength in East/Midwest and Canada offset by West region (Nugget) and Poland headwinds .
  • Relative to S&P Global consensus, revenue missed by ~$5.1M ($158.8M* vs $153.7M) and EPS missed (consensus $(0.227)* vs actual $(0.35)); management noted one-time items (prior-year Tipico fee, Mountaineer bonus reversal, Poland closure costs) masked underlying momentum * .
  • Segment highlights: Missouri’s Carruthersville EBITDA +35% to $6.1M, Cape Girardeau $6.1M; Rocky Gap EBITDA +7% to $4.9M; Alberta EBITDA +11% to $5.4M; Nugget had record August ($4.1M EBITDA) but weaker July/September .
  • Guidance and events: 2025 capex lowered to $18M (from “≤$20M” in Q2), Missouri online sports betting go‑live December 1 with BetMGM, Poland second Wrocław opening moved to January 2026; October EBITDA prelim “well over 20%” YoY, strategic review ongoing, and Rocky Gap goodwill error prompts restatements (no impact to revenue/Adj. EBITDAR) .

What Went Well and What Went Wrong

What Went Well

  • Carruthersville delivered 29% gaming revenue growth and EBITDA +35% to $6.1M; management highlighted successful expansion to customers >75 miles and strong margins: “outstanding success… modern, efficient” .
  • Alberta portfolio EBITDA +11.1% to $5.4M with broad-based growth and disciplined costs; St. Albert benefited from facade upgrade .
  • Rocky Gap achieved first weather‑normal quarter, EBITDA +7% to $4.9M; slot revenue and high-value segments drove growth .

What Went Wrong

  • Nugget performance mixed: record August ($4.1M EBITDA) but weaker July/September; fewer concerts and large events reduced hotel/casino/F&B spillover .
  • Poland impacted by closure of Warsaw Hilton casino: prior-year EBITDA $1.3M vs negative $0.5M this quarter; one-time costs and license timing weighed on results .
  • Consolidated metrics declined YoY: net operating revenue -1%, Adjusted EBITDAR -6%, GAAP net loss widened to $(10.5)M; West region and Poland drove pressure .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Net Operating Revenue ($USD Millions)$155.7 $150.8 $153.7
Earnings from Operations ($USD Millions)$17.9 $16.6 $17.1
Adjusted EBITDAR ($USD Millions, Non-GAAP)$32.9 $30.3 $31.1
Net Loss per Share (Basic, GAAP) ($USD)$(0.26) $(0.40) $(0.35)
Adjusted EBITDAR Margin %21% 20% 20%
Net Earnings (Loss) Margin %(5%) (8%) (7%)
Q3 2025 vs ComparisonsNet Operating RevenueEPS (GAAP)Adjusted EBITDAR
YoY vs Q3 2024-$2.0M (-1%) $(0.35) vs $(0.26) -$1.8M (-6%)
QoQ vs Q2 2025+$2.9M (+2%) $(0.35) vs $(0.40) +$0.8M (+3%)
Estimates vs Actual (Q3 2025)ActualConsensusSurprise
Revenue ($USD)$153.7M $158.8M*-$5.1M
EPS (GAAP) ($USD)$(0.35) $(0.2269)*-$0.12

Values marked with * retrieved from S&P Global.

Segment breakdown (Q3 2025 vs Q3 2024):

SegmentNet Operating Revenue ($USD Millions) Q3 2024Net Operating Revenue ($USD Millions) Q3 2025ChangeAdjusted EBITDAR ($USD Millions) Q3 2024Adjusted EBITDAR ($USD Millions) Q3 2025Change
United States$117.1 $115.0 (2%)$29.17 $29.14 —
Canada$20.28 $20.59 +2%$4.89 $5.42 +11%
Poland$18.29 $18.14 (1%)$1.96 $(0.43) (122%)
Consolidated$155.70 $153.72 (1%)$32.90 $31.06 (6%)

Key KPIs and balance sheet:

KPIQ2 2025Q3 2025
Cash & Cash Equivalents ($USD Millions)$85.5 $77.7
Outstanding Debt ($USD Millions)$338.1 $338.7
Net Debt ($USD Millions)$252.5 $261.0
Net Debt / EBITDA (x)6.2x 6.9x
Lease-Adjusted Net Debt / EBITDA (x)7.3x 7.6x
CapEx in Quarter ($USD Millions)$5.8 $5.0
Share Buyback in Quarter ($USD Millions)$1.0 $1.5
Master Lease Cash Rent ($USD Millions, quarter)$14.40 $14.44
Nugget Lease Cash Rent ($USD Millions, quarter)$1.94 $1.94

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total CapExFY 2025“No more than $20M” $18M total; $15M spent YTD Lowered
Missouri Online Sports Betting (BetMGM)Launch timing“Q4 2025” expected December 1, 2025 Firmed date
Poland – Second Wrocław Casino OpeningLaunch timingQ4 2025 expected January 2026 Delayed
Accounting Update – Rocky Gap GoodwillFY 2024, Q1–Q2 2025No prior restatementRestatements to 2024 10‑K and Q1/Q2 2025 10‑Qs; no impact to revenue or Adjusted EBITDAR New restatement

Earnings Call Themes & Trends

TopicQ1 2025 (Prior Mentions)Q2 2025 (Prior Mentions)Q3 2025 (Current)Trend
Strategic ReviewNot disclosedStrategic review initiated; Macquarie/ Faegre engaged Ongoing; no decisions until at least Q1 2026 Stable/ongoing
Missouri (Carruthersville & Cape)New land-based casino performing well Carruthersville strong; Cape hotel driving gaming/F&B Carruthersville EBITDA +35% to $6.1M; BetMGM sportsbook to open; online go‑live Dec 1 Improving
Colorado ETGs—Eliminated live tables; ETG lounges improved margins ETGs success; selective rollout strategy elsewhere Operational efficiency improving
Nugget (Reno-Sparks)—Weakness from concerts; bookings improving in late Q2 Record August EBITDA $4.1M; weaker July/Sep; focus on core players/F&B; 2026 concerts (Brooks & Dunn) Mixed; repositioning
CanadaWeather impacts earlier; local market focus Slot coin-in +6%; St. Albert uplift post renovations Alberta EBITDA +11%; continued cost discipline; facade upgrades considered Improving
PolandLicenses/closures; plan to divest Growth on more casinos open; Hilton closure costs in Q3 expected Warsaw Hilton closure hit; Wrocław ramping; all licenses valid through 2028; divestment intent reiterated Normalizing post-licenses; strategic
Tax/MacroSevere weather impact; cautious sentiment Expect “One Big Beautiful Bill” tip deductions support consumers October EBITDA “well over 20%” YoY; anticipate tax bill benefits to core customers Improving momentum

Management Commentary

  • “Adjusting for [one-time effects], Q3 EBITDA would have increased by about 5%, beating consensus estimates and demonstrating continued operating momentum… not bad at all, definitely better than it looks” — Peter Hoetzinger .
  • “Caruthersville has been an outstanding success, modern, efficient, and exceptionally well‑received by our guests” — Erwin Haitzmann .
  • “Preliminary results for October show EBITDA up well over 20% compared to last year” — Peter Hoetzinger .
  • “We discovered an error during impairment testing for goodwill at Rocky Gap… [we] restate our 2024 10‑K and 10‑Qs; this does not change our revenue or Adjusted EBITDA” — Peter Hoetzinger .

Q&A Highlights

  • Canada strength: drivers include St. Albert facade upgrade and motivated management; portfolio viewed as largely standalone with incremental synergies .
  • Nugget recovery path: convention space expansion (+11k sq ft); focus on booking fewer but higher-quality acts (e.g., Brooks & Dunn) after learning lower-cost acts underperformed; expect better 2026 .
  • ETGs strategy: Colorado success suggests broader ETG use, but not full replacement in larger properties; margin enhancement prioritized .
  • Capital allocation: weighing buybacks vs debt paydown; small Q3 repurchases ($1.5M) while strategic review proceeds; no large debt repurchases before process conclusion .
  • Retail/low-end customer volatility: weakness tied to tariff/inflation concerns and local income profiles; initiatives to pivot toward mid/upper-tier segments; October showed recovery .

Estimates Context

  • Q3 2025 revenue missed consensus ($153.7M actual vs $158.8M*), and GAAP EPS missed ($(0.35) vs $(0.2269)*). Management emphasized one-time items in September (prior-year Tipico fee reversal, Mountaineer bonus accrual reversal, Poland closure costs) obscured underlying strength .
  • Prior quarters: Q2 2025 revenue beat ($150.8M actual vs $148.7M*), while EPS was better than feared (consensus $(0.364); actual $(0.40) at GAAP) as portfolio momentum improved *.
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Underlying operations stronger than headline: adjusting for September one‑offs, management indicates Q3 EBITDA would have risen ~5% and beaten consensus, with October prelim EBITDA up “well over 20%” YoY .
  • East/Midwest and Canada are carrying the portfolio: Carruthersville/Cape stable-to-strong, Alberta +11% EBITDA, Rocky Gap rebounding; West (Nugget) requires continued repositioning toward core customers and high‑quality entertainment .
  • Capex discipline and liquidity: 2025 capex reduced to $18M, no maturities until 2029; Q3 cash $77.7M, net debt $261M, ND/EBITDA 6.9x (7.6x lease‑adj) .
  • Upcoming catalysts: Missouri online sports betting launch Dec 1 (BetMGM) elevates Missouri profile; second Wrocław opening now January 2026; potential asset actions from strategic review could alter leverage/portfolio mix .
  • Accounting cleanup de‑risking: Rocky Gap goodwill error leads to restatements with no impact to revenue/Adjusted EBITDAR; watch filings within five business days from Q3 release date .
  • Near-term trading: Q3 headline miss vs consensus may be overshadowed by October strength and segment-level momentum; watch Nugget performance trajectory and sports betting launch quality for sentiment .
  • Medium-term thesis: Focus on harvesting recent investments (Missouri), disciplined cost structure (ETGs, marketing), and potential portfolio optimization from strategic review; Canada steady and Poland normalizing into 2026 .