Capital allocation and stock repurchase amount, divestment timeline for Polish assets, conference business outlook and strategy, strategic focus and divestment plans, capital allocation and debt refinancing are the key contradictions discussed in Century Casinos' latest 2025Q2 earnings call.
Strong Financial Performance:
-
reported record
revenue of
$150.8 million for Q2 2025, with an EBITDA of
$30.3 million, marking a
50% sequential increase and a
10% year-over-year rise.
- The growth was driven by strength in Missouri, Canada, and Poland, as well as improving trends among retail and lower-end customers.
Missouri Operations Growth:
- The new Caruthersville Casino and Hotel in Missouri saw a
24% increase in total revenue, with EBITDAR up
30% to
$6.1 million.
- This growth was attributed to a significant increase in customer visits and high-value customer segments, particularly the 30-39 age group from distances of over 75 miles.
BetMGM Partnership and Sports Betting:
- Century Casinos announced a partnership with BetMGM for online and mobile sports betting in Missouri, with expected contributions to financials in 2026.
- The agreement includes a percentage of net gaming revenue payable to Century Casinos, expected to provide meaningful contributions to financials once operational in December 2026.
Poland Divestment Progress:
- Despite not receiving a new license for a second casino in Warsaw, Century Casinos expects to sign a Letter of Intent with an Eastern European Gaming Group next week for the Poland business.
- The divestment is part of a strategic review to optimize shareholder value and explore potential mergers or asset level transactions.
Cash Flow and Capital Allocation:
- Century Casinos turned
cash flow positive in the quarter, with cash and cash equivalents at
$85.5 million, and a net debt-to-EBITDA ratio improving from
7.6x to
7.3x.
- The company repurchased
428,734 shares during the quarter at an average price of
$2.12 per share, but plans for continued stock buybacks are subject to legal constraints.
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