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Jun 30, 2024
Century Casinos Q2 2024 Earnings Report
Century Casinos experienced a challenging second quarter in 2024, with revenue increasing but earnings and net income declining due to valuation allowance on US deferred tax assets and underperformance at Nugget Casino Resort.
Key Takeaways
Century Casinos reported a 7% increase in net operating revenue to $146.4 million for Q2 2024, but experienced a net loss of $41.6 million, or $1.36 per share, due to a valuation allowance on US deferred tax assets and underperformance at the Nugget Casino Resort. The company is implementing cost-cutting initiatives and anticipates opening a new casino in Caruthersville, Missouri, ahead of schedule.
Net operating revenue increased by 7% to $146.4 million.
Net loss attributable to Century Casinos, Inc. shareholders was ($41.6) million, with a basic loss per share of ($1.36).
Adjusted EBITDAR decreased by 6% to $27.4 million.
The company recorded a valuation allowance on its net deferred tax assets related to the United States, resulting in $23.8 million of tax expense.
Century Casinos
Century Casinos
Century Casinos Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comCanada Revenue
CapyFin.comPoland Revenue
CapyFin.com Forward Guidance
Century Casinos has completed most of its elevated capital expenditure projects and anticipates total capital expenditures of approximately $12.6 million for the remainder of 2024 and $12.0 million in 2025. The company looks forward to opening its new land-based casino in Caruthersville, Missouri, ahead of schedule in mid-November 2024.
Positive Outlook
- New land-based casino in Caruthersville, Missouri is expected to open ahead of schedule in mid-November 2024.
- The Caruthersville casino will increase gaming positions and hotel rooms in Caruthersville by approximately 50%.
- Projected capital expenditures are approximately $12.6 million for the remainder of 2024 and $12.0 million in 2025.
- Renovations on the new casino location in Wroclaw continue, with the opening expected in October 2024.
- The Caruthersville project continues to be on budget with an estimated project cost of $51.9 million.
Challenges Ahead
- Results for the second quarter of 2024 were impacted by a valuation allowance on US deferred tax assets.
- The Nugget Casino Resort experienced a disappointing performance.
- Two casinos in Poland were temporarily closed.
- The Company closed its Krakow casino in May 2024 and its LIM Center casino in Warsaw in July 2024 due to the expiration of the license at each location.
- There can be no assurance that licenses for the Krakow and Warsaw casinos will be received.
Revenue & Expenses
Visualization of income flow from segment revenue to net income