Century Casinos' Q1 2025: Unpacking Contradictions in Revenue Growth, Debt Management, and Strategic Decisions

Revenue growth strategy for Missouri properties, lease debt and financial goals, impact of Alberta's gaming machine purchase suspension, willingness to sell Polish assets, and share repurchase strategy are the key contradictions discussed in Century Casinos' latest 2025Q1 earnings call.



Financial Performance and headwinds:
- Century Casinos reported revenues of $130.4 million in Q1 2025, with EBITDAR at $20.2 million.
- The company faced several challenges, including weather impacts, one less operating day, and a significant loss of sports betting revenue in Colorado.
- Despite these headwinds, the company maintained consistent operating margins, demonstrating operational stability.

Missouri Property Performance:
- The new Caruthersville property generated $5.8 million more net revenue and $3 million more in EBITDAR in its first six months of operation.
- This growth was due to the expanded market reach and increased efficiency, with an EBITDAR margin of 43%.
- The success of the new casino hotel in Cape Girardeau also contributed to increased visitation and revenue, demonstrating the effectiveness of strategic expansions.

Colorado and East Segment Performance:
- Colorado properties experienced mixed results in carded and uncarded gaming revenue, with Central City's carded revenue growing by 7% but uncarded revenue decreasing by 36%.
- The East segment, including Mountaineer and Rocky Gap, faced challenges due to lower-end customer declines, partly offset by higher-end customer growth.
- The company is focusing on cost optimization and operational efficiency to stabilize these properties, with plans to continue improving performance through strategic initiatives.

Capital Structure and Shareholder Value:
- Century Casinos maintained a strong cash position of $85 million and plans to reduce net debt to below 6 times and 7 times on a lease-adjusted basis by year-end.
- The company aims to return capital to shareholders through a stock buyback program, starting with a single-digit million-dollar volume between now and early August.
- This strategic decision is based on the current market dislocations and the company's confidence in its growth prospects moving forward.