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• Net Revenue: $156 million, a decrease of 3% compared to Q3 of last year.

• Adjusted EBITDAR: $32.9 million, down 1%.

• Consolidated EBITDAR Margin: Increased from 20.6% to 21.1%.

• East Segment Revenue: Up 7%.

• East Segment EBITDAR: Up 5%.

• Midwest Segment Revenue: Essentially flat.

• Midwest Segment EBITDAR: Down 5%.

• West Segment Revenue: Sequentially up 40% compared to Q2.

• West Segment EBITDAR: Doubled compared to Q2.

• Cash and Cash Equivalents: $119 million.

• Outstanding Debt: $340 million.

• Net Debt: $221 million.

• Traditional Net Leverage: 4.7 times.

• Adjusted Net Leverage: 6.6 times.

• CapEx for 2024: Expected to be around $38 million.

• CapEx for 2025: Expected to decrease to about $16 million.

• Warning! GuruFocus has detected 6 Warning Signs with CNTY.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Century Casinos Inc (NASDAQ:CNTY) reported a consolidated EBITDAR margin increase from 20.6% to 21.1%, indicating improved operational efficiency.

• The reopening of a key casino in Poland is expected to restore the region to a normal EBITDAR run rate of $10 million to $12 million annually.

• The new land-based casino and hotel in Carville, Missouri, opened with a record-setting weekend, showing strong initial performance and potential for future growth.

• The Nugget Casino Resort in Reno showed significant sequential growth, with revenue up 40% and EBITDAR doubling compared to Q2.

• The company has a strong liquidity position with $119 million in cash and no debt maturities until 2029, providing financial stability and flexibility.

Negative Points

• Net revenue decreased by 3% compared to Q3 of last year, primarily due to the temporary closure of a casino in Poland.

• Non-rated play was down across the portfolio, attributed to macroeconomic factors and consumer wallet softness.

• The Midwest segment experienced a 5% decline in EBITDAR, impacted by disruptions from the development of the new facility in Carville.

• The Nugget Casino Resort faced a decline in hotel and F&B revenue due to fewer group room nights, affecting overall performance.

• The Canadian segment saw a decrease in net operating revenue, particularly at the Century Downs casino, due to increased competition and the absence of a large event.

Q & A Highlights

Q: Can you provide an update on the status of the casino licenses in Poland? A: Peter Hoetzinger, President and Co-CEO, explained that some licenses expired because the officials did not start the relicensing process in time. However, the important licenses that generate significant revenue have been granted again, including the one in Roslov, which reopened 10 days ago. Two smaller licenses were not relicensed, but this does not have a meaningful impact on EBITDAR. Poland is back to normal operations with an expected annual EBITDAR of $10 million to $12 million.