Century Casinos faces awkward shareholder call with questions asked about strategic direction

Century Casinos’ Q4 earnings call was an uncomfortable listen for the management of the North American casino entertainment group. The NASDAQ-listed company reported a decline in Q4 revenue to $137.8m, leading to tough questions directly questioning the viability of those in charge.

According to a report in Gambling Insider, shareholders were forthright in questioning the board about both the company’s strategic direction, as well as the stock underperformance, with one caller, identified only as Mike, asking whether the business’ current leadership was capable of turning things around, describing the performance as “disappointment and disappointment.”

Century, which has seven casinos in the US, also has destinations in Canada (three) and Poland (one), which Mike urged them to exit, leaving them to concentrate on the US side of the business.

Century’s Co-CEO Peter Hoetzinger explained that Canada was under review but exiting Poland was more complicated as there are joint-ownership agreements in place in the eastern European country.

It was highlighted by Century management that while declining economic conditions have “impacted lower-end customers”, one of Century’s key demographics, business at the recently opened Caruthersville, Missouri casino has reported a 27% increase in revenue since opening during November last year.

Compared to the three months ended December 31, 2023:

• Net operating revenue was $137.8 million, a decrease of (4%).
• Loss from operations was ($36.2) million, a change of (388%).
• Net loss attributable to Century Casinos, Inc. shareholders was ($64.9) million, a change of (500%), and basic net loss per share was ($2.11).
• Adjusted EBITDAR** was $21.1 million, a decrease of (17%).
• Nugget Goodwill Impairment – The Company impaired goodwill at its Nugget Casino Resort (the “Nugget”) property based on estimated market conditions and performance, resulting in $43.7 million recorded to impairment – goodwill for the three months and year ended December 31, 2024. The impairment negatively impacted (loss) earnings from operations and net loss attributable to Century Casinos, Inc. shareholders for the three months and year ended December 31, 2024.

Century Casinos, Inc. was founded in 1992 and has been listed on the NASDAQ Capital Market since 1994 (CNTY)

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