Century Casinos (CNTY) Q2 2025 earnings summary

Executive summary

• Net operating revenue for Q2 2025 rose 3% year-over-year to $150.8 million, with Adjusted EBITDAR up 10% to $30.3 million and net loss narrowing to $12.3 million, a 70% improvement from the prior year.

• Strong operational performance was driven by new property openings in Caruthersville and Cape Girardeau, and a focus on regional, drive-to markets with limited new competition risk.

• Management owns 15% of shares and has over 100 years of experience, emphasizing growth through property enhancements and new projects.

• A comprehensive strategic review process is underway to explore asset sales, partnerships, or a potential sale of the company, with Macquarie Capital and Faegre Drinker engaged as advisors.

• Partnership with BetMGM for online and mobile sports betting in Missouri is expected to launch in Q4 2025, providing new revenue streams.

Financial highlights

• Q2 2025 net operating revenue was $150.8 million, up from $146.4 million in Q2 2024; Adjusted EBITDAR was $30.3 million, up 10% year-over-year.

• Net loss attributable to shareholders for Q2 2025 was $12.3 million, improved from $41.6 million in Q2 2024; net loss per share improved to $(0.40) from $(1.36) year-over-year.

• Cash and cash equivalents at June 30, 2025 were $85.5 million; net debt was $252.5 million.

• Adjusted EBITDAR margin for Q2 2025 was 20.1%, up from 18.7% year-over-year.

• Net debt leverage was 6.2x; lease-adjusted net leverage was 7.3x as of June 30, 2025.

Outlook and guidance

• Confident in higher EBITDA and cash flow for 2025 and beyond, with no significant CapEx needed this year or next; 2025 capital expenditures estimated at $17.9 million.

• Net debt leverage expected to trend toward 4.7–6.0x by end of 2025 as Adjusted EBITDAR increases.

• Sports betting in Missouri is expected to launch in Q4 2025 through BetMGM, with guaranteed minimum revenue.

• New casino in Wroclaw, Poland expected to open in Q4 2025; Warsaw Hilton casino closed after not receiving a new license.

• Board's strategic review may result in asset sales, partnerships, or other transactions, but no timeline or commitments set.