Why did CNTY's Q4 2024 earnings decline?

Century Casinos Inc (CNTY) experienced a decline in Q4 2024 earnings due to a combination of factors:

1. **Revenue Decline**: The company's consolidated revenue decreased by 4% year-over-year, primarily due to a significant decline in uncarded revenue in Colorado, which dropped by 30%. Additionally, the revenue from sports betting was impacted as two of the three providers using CNTY's licenses ceased operations.
2. **Operational Challenges**: The East segment, comprising Mountaineer Casino in West Virginia and Rocky Gap Casino Resort in Maryland, faced challenges with revenue down 7% and EBITDA down 29%. This was partly due to a decline in low-end customer spending and non-rated play, which is indicative of broader economic challenges.
3. **International Challenges**: The company's operations in Canada and Europe also faced difficulties, with Canadian revenue down 7% and EBITDA down 17%. This was likely due to the challenging operating conditions in these regions. Additionally, the operations in Poland were impacted by temporary casino closures, which may have had a lasting effect on revenue.
4. **Financial Stability Concerns**: Despite the revenue decline, the company's financial stability was under pressure, with a net debt to EBITDA ratio of 5.5 times and a lease-adjusted basis of 6.9 times. The capex spend was high at $110 million, with $50 million coming from VICI for Missouri development, which could have strained the financials.

In summary, CNTY's Q4 2024 earnings decline was due to a combination of revenue decrease, operational challenges, international challenges, and financial stability concerns.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Other|2.9755E7|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Other|2.3351E7|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Other|1.2834E7|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Other|5163000|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Hotel|9302000|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Food and Beverage|1.2745E7|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Other|5163000|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Gaming|1.05418E8|186|
|CNTY|CNTY.O|Century Casinos|20240101-2024|Pari-Mutuel and Sports Betting|3389000|186|