Century Casinos (CNTY) Q1 2025 earnings summary

Executive summary

• Q1 2025 net operating revenue was $130.4 million, down 4–4.1% year-over-year, impacted by severe weather, one fewer operating day, and the termination of sports betting agreements in Colorado.

• Net loss attributable to shareholders widened to $20.6 million, a 52% increase from Q1 2024, driven by higher interest expense, increased income tax expense, and lower revenues.

• Adjusted EBITDAR was $20.2 million, down 5–5.2% year-over-year, but margin was maintained due to cost-cutting, especially at the Nugget property.

• New land-based casino and hotel opened in Caruthersville, Missouri in November 2024; new hotel opened in Cape Girardeau, Missouri in April 2024.

• Operates 17 properties with 7,469 slot/electronic gaming machines, 221 tables, and 2,153 hotel rooms across the US, Canada, and Europe, focusing on regional, drive-to markets.

Financial highlights

• Gaming revenue declined 4.5% to $100.7 million; hotel revenue rose 4.4% to $9.7 million; food and beverage revenue fell 5.0% to $12.1 million year-over-year.

• Net debt at quarter-end was $254.9 million, with a net debt-to-EBITDA ratio of 6.9x (7.6x lease-adjusted); cash and equivalents were $84.7 million.

• Adjusted EBITDAR margin was 16% in Q1 2025 and Q1 2024; US Adjusted EBITDAR margin: 20%; Canada: 26%; Poland: 4%.

• Interest expense (net) was $25.7–26.0 million in Q1 2025, up slightly from Q1 2024.

• US operations contributed 71% of Q1 2025 revenue and 79% of Adjusted EBITDAR.

Outlook and guidance

• Net debt-to-EBITDA ratio expected to trend toward 4.7–6.0x by year-end; lease-adjusted net leverage expected to trend toward 6.6–7.2x.

• Remaining 2025 capital expenditures are estimated at $12.0–17.9 million, with $1.8–3.5 million for growth and the rest for maintenance.

• Free cash flow is projected to improve significantly due to reduced CapEx and returns on recent investments.

• Share repurchases planned, with $14.7 million remaining authorized; initial buybacks to begin before the next earnings release.

• Company may seek additional capital through debt or equity if needed; $30 million remains available on the revolving credit facility.