Century Casinos 2025 Q1 Earnings Misses Targets as Net Loss Widens 61%

Century Casinos (CNTY) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The casino entertainment company saw a net loss increase of 61.4% year-over-year, with losses deepening to $0.67 per share compared to $0.45 per share in Q1 2024. Despite the challenges, the company maintains optimism about its future. The company’s guidance indicates plans to reduce net debt and initiate stock buybacks, aiming for improved free cash flow and operational efficiency.

Revenue

Century Casinos experienced a revenue decline of 4.2% in Q1 2025, reaching $125.36 million compared to $130.85 million in the same period last year. The gaming segment generated $100.67 million, while pari-mutuel, sports betting, and iGaming contributed $2.88 million. The hotel segment reported $9.71 million, and food and beverage revenues amounted to $12.11 million. Additionally, other revenues stood at $5.08 million, culminating in a net operating revenue of $130.44 million.

Earnings/Net Income

Century Casinos' earnings per share deteriorated significantly, moving from a loss of $0.45 per share in Q1 2024 to $0.67 per share in Q1 2025. This represents a 48.9% wider loss. The net loss for the quarter grew by 61.4% to $-18.88 million, compared to $-11.69 million in the previous year. The increased loss per share indicates a challenging financial situation for the company.

Price Action

The stock price of Century Casinos dropped 3.92% during the latest trading day, increased by 0.68% over the most recent full trading week, and decreased by 2.65% month-to-date.

Post Earnings Price Action Review

The strategy of purchasing CNTY stock when revenues fall short and holding for 30 days has shown mixed results. While it generated a profit ratio of 0.5, indicating a return of $0.5 for every dollar invested, the strategy also faced a maximum drawdown of 20%. This highlights a significant risk, as the peak-to-valley loss was considerable. The 30-day holding period proved effective in capturing stock volatility, allowing for substantial recovery. Shorter holding periods might miss out on this rebound, underscoring the need for a balanced approach between potential gains and risk management.

CEO Commentary

Peter Hoetzinger, Co-Chief Executive Officer, expressed optimism about Century Casinos' performance despite challenges such as adverse weather and a decline in sports betting revenue. He highlighted a solid revenue of $130.4 million and an EBITDAR of $20.2 million, maintaining operating margins consistent with the previous year. Hoetzinger emphasized strong results from the new Caruthersville property, which exceeded expectations with a 25% revenue increase. He indicated a focus on operational discipline, efficiency, and a positive consumer spending trend since mid-March, reinforcing confidence in the company’s long-term prospects while acknowledging ongoing economic uncertainties.

Guidance

Looking ahead, Century Casinos expects to reduce its net debt to EBITDA ratio to below 6 times by year-end. The company plans to spend approximately $4 million on growth projects and $14 million on maintenance CapEx, targeting significant improvements in free cash flow compared to last year. Hoetzinger noted that initial estimates for April show a 5% increase in EBITDAR year-over-year, and the company intends to initiate stock buybacks in the coming weeks, starting with a single-digit million dollar value.

Additional News

Century Casinos recently announced the opening of its new land-based casino in Caruthersville, Missouri, marking a significant milestone in its expansion efforts. The new property is expected to enhance the company's regional footprint and contribute positively to its revenue streams. Additionally, the company was awarded a second license in the city of Wroclaw, Poland, with plans to open the casino by the fourth quarter of 2025. This expansion indicates a strategic move to strengthen its presence in the European market. Furthermore, Century Casinos revealed plans to initiate stock buybacks, starting with a single-digit million dollar value, reflecting confidence in its long-term growth and shareholder value enhancement strategy.