Century Casinos Faces Tough Questions Amid Declining Revenue and Profitability in Q4 2024 Earnings Call

During Century Casinos’ Q4 2024 earnings call, investor frustration was palpable as shareholders sought clarity on issues related to stock performance and the company’s overall strategic direction. One investor, who introduced himself as Mike, expressed skepticism about leadership’s ability to reverse the trend, describing the company’s results as “disappointment after disappointment.” He urged the firm to divest from its operations in Poland and Canada, recommending a concentrated focus on U.S. markets.

In response, Co-CEO Peter Hoetzinger noted that while a review of Canada was underway, exiting Poland would be complicated due to existing joint-ownership agreements. He also highlighted that economic conditions, specifically inflation, had negatively affected lower-end customers, which represents a significant portion of Century’s clientele.

Key insights from the call revealed that Q4 revenue dipped 4% year-on-year to $137.8 million, with an adjusted EBITDAR decrease of 17% to $21.1 million. A noteworthy $43.7 million goodwill impairment related to the Nugget Casino Resort contributed to a substantial net loss of $64.9 million. Despite these setbacks, management took the opportunity to underscore the positive early performance from the newly launched Caruthersville, Missouri casino, which achieved a 27% increase in revenue since its November 2024 opening.

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Another shareholder, JT, encouraged executives to exhibit confidence by purchasing company shares. However, Co-CEO Erwin Haitzmann replied that legal restrictions hindered insider buying. Outside of Missouri, the company’s performance in other regions was less favorable. Revenue in Colorado fell by 7%, while properties in West Virginia and Maryland also recorded a 7% decline. Additionally, the Nugget Casino in Nevada experienced a 10% revenue drop, although effective cost management led to a 46% increase in EBITDAR.

While executives refrained from offering earnings guidance for 2025 due to economic uncertainties, they maintained that recent investments were poised to foster long-term growth. Nevertheless, the evident investor dissatisfaction suggests that the company will face ongoing scrutiny in the upcoming months.