- Q4 2024 Revenue: $137.8 million, down 4% year-over-year.
- Q4 2024 Adjusted EBITDA: $21.1 million, down 17% year-over-year.
- US Operations Revenue: Down 3% year-over-year.
- US Operations EBITDA: Down 8% year-over-year.
- New Casino in Carouseville, Missouri: Revenue up 27%, EBITDA up 32% since opening.
- Central Casino Hotel Cape Girardeau Revenue: Up 11% year-over-year.
- Central Casino Hotel Cape Girardeau EBITDA: Up 7% year-over-year.
- Missouri and Colorado Property Margins: Between 35% and 40% during the quarter.
- East Segment Revenue: Down 7% year-over-year.
- East Segment EBITDA: Down 29% year-over-year.
- West Segment Gaming Revenue: Down 10% year-over-year.
- West Segment EBITDAR: Increased by 46% year-over-year.
- Canada Revenue: Down 7% year-over-year.
- Canada EBITDA: Down 17% year-over-year.
- Cash and Cash Equivalents: $99 million at the end of Q4 2024.
- Total Debt: $340 million, resulting in net debt of $241 million.
- Net Debt to EBITDA Ratio: 5.5 times, 6.9 times on a lease-adjusted basis.
- CapEx Spend: $110 million in total, with $50 million from VICI for Missouri development.
- 2025 CapEx Expectation: $4 million for growth projects, $14 million for maintenance.
- Warning! GuruFocus has detected 7 Warning Signs with CNTY.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The new land-based facility in Caruthersville, Missouri, has exceeded initial expectations with revenue and EBITDA up 27% and 32% respectively since opening.
- The Central Casino Hotel Cape Girardeau in Missouri reported a strong quarter with revenue up 11% and EBITDA up 7%, driven by the new hotel and solid food and beverage sales.
- The new hotel in Cape Girardeau is expanding reach into new markets, with revenue from patrons living outside Missouri, Illinois, and Kentucky increasing by 82%.
- The Nugget Casino Resort in Nevada achieved a 46% year-over-year increase in EBITDAR due to strict cost discipline and promising initial results from changes to the slot floor.
- Century Casinos Inc (NASDAQ:CNTY) has no debt maturities until 2029, providing financial stability and allowing leverage ratios to ramp down with the conclusion of major capital expenditures.
Negative Points
- Fourth quarter consolidated revenue was down 4% year-over-year, and adjusted EBITDA decreased by 17%.
- The East segment, including Mountaineer Casino in West Virginia and Rocky Gap Casino Resort in Maryland, faced challenges with revenue down 7% and EBITDA down 29%.
- The company experienced a significant decline in uncarded revenue, particularly in Colorado, where it decreased by 30%, impacting overall revenue.
- Two of the three sports betting providers using Century Casinos Inc (NASDAQ:CNTY)'s licenses ceased operations, affecting sports betting revenue.
- The company's operations in Canada and Europe faced difficulties, with Canadian revenue down 7% and EBITDA down 17%, and challenges in divesting Polish operations due to geopolitical and ownership issues.
Q & A Highlights
Q: Is the weaker outlook for 2025 primarily due to the lower end of the database? A: Peter Hoetzinger, Co-CEO, confirmed that the main driver of the weaker outlook is indeed the lower end of the database. Growth is observed in the mid and upper tiers, but the low end remains a significant question mark, affecting properties like Rocky Gap and Mountaineer.
Q: How are efforts to revitalize the Nugget Casino Resort progressing, and what is the outlook for future conference bookings? A: Erwin Haitzmann, Co-CEO, noted that the decline in casino revenue is linked to a decrease in hotel revenue. The team is focusing on securing smaller conferences and events, with a positive outlook for 2026 and beyond. Efforts are also being made to regain local business.
Q: Will the suspension of gaming machine purchases from US manufacturers in Alberta impact operations or CapEx plans? A: Erwin Haitzmann stated that they do not expect any meaningful negative impact, estimating a potential 0.5% to 1% effect. The product mix remains fresh, and the situation is the same for all market players.
Q: Can you provide more details on the performance of the Caruthersville property and its future EBITDA targets? A: Erwin Haitzmann mentioned that the property is meeting expectations by extending its reach to customers from further away. Peter Hoetzinger added that the $3 million to $4 million incremental EBITDA target is still valid but may not be achieved in 2025 due to lower-end consumer weakness.
Q: How does management plan to balance capital allocation between stock repurchases and debt repayment amid macroeconomic uncertainty? A: Peter Hoetzinger explained that due to the volatile consumer sentiment, the company is cautious with capital allocation. The priority is to refinance or reprice the term loan, with opportunistic stock buybacks also being considered.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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