In This Article:
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Net Revenue: $146 million, an increase of 7% over Q2 of last year.
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Adjusted EBITDAR: $27 million, down 6% from last year.
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Midwest Segment Revenue: Up 4%.
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Midwest Segment EBITDAR: Down 5%.
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East Segment Revenue: Up 60% due to the acquisition of Rocky Gap Casino Resort.
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East Segment EBITDAR: Almost doubled.
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Canada Revenue: Grew by 5%.
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Canada EBITDAR: Up 7%.
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Cash and Cash Equivalents: $123 million.
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Outstanding Debt: $342 million.
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Net Debt: $219 million.
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Traditional Net Leverage: 4.6 times.
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Lease Adjusted Net Leverage: 6.5 times.
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Projected 2024 Revenue: $602 million.
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Projected 2024 Adjusted EBITDAR: $105 million to $115 million.
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Projected 2025 Revenue: $650 million to $675 million.
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Projected 2025 Adjusted EBITDAR: $150 million to $160 million.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Century Casinos Inc (NASDAQ:CNTY) reported a 7% increase in net revenue for Q2 2024, driven by the addition of Rocky Gap in Maryland and strong performance in Canada.
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Construction at Caruthersville is progressing ahead of schedule, with a soft opening planned for mid-November, promising enhanced gaming options and amenities.
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The company's operations in Alberta, Canada, delivered solid performance, with revenue and EBITDAR growth of 5% and 7%, respectively.
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The newly acquired Rocky Gap Casino Resort in Maryland contributed to a 60% revenue increase in the East segment, with EBITDAR nearly doubling.
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Century Casinos Inc (NASDAQ:CNTY) has a strong liquidity position with $123 million in cash and no debt maturities until 2029, providing financial stability and flexibility.
Negative Points
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Adjusted EBITDAR decreased by 6% year-over-year, impacted by construction disruptions and temporary closures in Poland.
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The Nugget Casino Resort in Reno experienced a 23% revenue decline due to renovation disruptions and lower slot and table hold.
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Non-rated play was down 10% across the portfolio, attributed to macroeconomic factors and consumer spending shifts.
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Two casinos in Poland remained closed during the quarter, significantly impacting revenue, although one is expected to reopen in October.
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The company's leverage is elevated due to recent acquisitions and investments, with traditional net leverage at 4.6 times and lease-adjusted net leverage at 6.5 times.
Q & A Highlights
Q: Can you elaborate on the revisions to 2024 and 2025 revenue and margin expectations? A: The revisions are primarily driven by the Nugget Casino and stabilization work there. Alberta is performing well, and Poland is expected to contribute significantly once casinos reopen. Rocky Gap and Mountaineer are facing challenges due to local economic conditions, but improvements are anticipated with upcoming developments.