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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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