Century Casinos reported this week financial results for the fourth quarter and full year of 2024, highlighting a mix of revenue gains and deepening losses. For the fourth quarter, net operating revenue was $137.8 million, a 4% decline from the same period in 2023.
The company posted a loss from operations of $36.2 million, a stark contrast to the $12.6 million in earnings it reported a year earlier. Net loss attributable to shareholders widened to $64.9 million, a 500% decline, while adjusted EBITDAR fell 17% to $21.1 million.
The company cited macroeconomic pressures and a $43.7 million impairment charge at the Nugget Casino Resort in Reno-Sparks as major factors impacting its earnings. However, management remains optimistic about 2025 following the successful opening of the company’s new land-based casino and hotel in Caruthersville, Missouri, back in November.
Full-year results showed some revenue growth, with net operating revenue rising 5% to $575.9 million. However, earnings from operations plummeted 93% to $4.3 million, and the net loss attributable to shareholders ballooned to $128.2 million, a 355% decline from the previous year. Adjusted EBITDAR for the year dropped 10% to $102.7 million.
Despite the financial setbacks, Co-CEOs Erwin Haitzmann and Peter Hoetzinger highlighted the new Caruthersville as a potential revenue driver. They expressed confidence that the company’s performance would improve as it moves past recent construction and renovation disruptions.
Co-CEOs Peter Hoetzinger and Erwin Haitzmann
“The highlight of the fourth quarter 2024 was the successful opening of the new land-based casino and hotel in Caruthersville, Missouri, on November 1, 2024,” Haitzmann and Hoetzinger said in a statement.
“We continue to see weak trends from retail and low-end customers, which we believe is due to macro-economics impacting consumer spending in our markets. However, with no construction or renovation disruptions and the opportunity to realize returns from our recent growth capital initiatives, we believe Adjusted EBITDAR and cash flow will improve in 2025 as compared to 2024.”
The company’s regional performance varied. In the United States, net operating revenue decreased 3% in the fourth quarter but rose 10% for the full year. Canada saw a 7% revenue decline for the quarter but a modest 1% increase for the year. Poland experienced the most notable challenges, with an 8% drop in fourth-quarter revenue and a 15% decline for the year.
While management expressed confidence in the future, shareholders weren’t as excited. Century Casinos’ earnings call saw direct criticism from investors, who demanded answers on stock underperformance and the company’s strategic direction.
An investor questioned whether leadership was capable of turning the business around, urging Century to exit Poland and Canada to solely focus on the US. While Hoetzinger said Canada is currently under review, he noted that exiting Poland was a complex move due to joint-ownership agreements.
Original article: https://www.yogonet.com/international/news/2025/03/14/98173-century-casinos-reports-revenue-down-in-q4-driving-mixed-investor-response
