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Dec 31, 2024

Century Casinos Q4 2024 Earnings Report

Century Casinos reported a decline in revenue and a significant net loss, impacted by goodwill impairment and weak consumer spending.

Key Takeaways

Century Casinos' Q4 2024 revenue declined by 4% to $137.8 million, with a net loss of $64.9 million due to a $43.7 million goodwill impairment charge at the Nugget Casino Resort. Adjusted EBITDAR decreased by 17% to $21.1 million. The company attributed weak performance to macroeconomic factors impacting consumer spending but expects improvements in 2025 with the opening of its new Missouri casino.

Net revenue declined by 4% to $137.8 million.

Net loss widened to $64.9 million, mainly due to a $43.7 million goodwill impairment.

Adjusted EBITDAR fell 17% to $21.1 million.

Weak trends from lower-end customers impacted overall performance.

Total Revenue
$138M
Previous year: $144M
-4.2%
EPS
-$2.11
Previous year: -$0.36
+486.1%
Adjusted EBITDA
$21.1M
Previous year: $25.4M
-16.9%
Book Value per Share
-$0.3
Previous year: $3.99
-107.5%
Cash and Equivalents
$98.8M
Previous year: $171M
-42.3%
Total Assets
$1.23B
Previous year: $1.36B
-9.8%

Century Casinos

Century Casinos

Century Casinos Revenue by Segment

Century Casinos Revenue by Geographic Location

Forward Guidance

Century Casinos expects improved performance in 2025, driven by stabilized operations and new property openings.

Positive Outlook

  • New land-based casino in Missouri opened in Q4 2024, expected to drive revenue in 2025.
  • No major construction or renovation disruptions anticipated in 2025.
  • Management expects cash flow and Adjusted EBITDAR to improve in 2025.
  • Opportunities for cost savings and efficiency improvements identified.
  • Company maintains access to a $30M revolving credit facility for liquidity.

Challenges Ahead

  • Continued weak consumer spending may impact gaming revenue.
  • Higher interest expenses due to outstanding debt obligations.
  • Ongoing macroeconomic uncertainty affecting customer demand.
  • Valuation allowance on U.S. deferred tax assets may increase future tax expenses.
  • Goodwill impairment charges have negatively impacted shareholder equity.