Century Casinos (NASDAQ:CNTY) reported record second-quarter revenue and EBITDA as operational improvements across its North American portfolio gained traction, according to Co-Chief Executive Officer Peter Hoetzinger during a fireside chat moderated by Lytham Partners Managing Partner Robert Blum.
The casino entertainment company operates regional gaming properties across the United States and Canada, along with six small club-style casinos in Poland. Hoetzinger, who co-founded the company in 1993 and helped take it public on Nasdaq in 1994, said the company’s strategy centers on preserving each property’s local identity while applying disciplined operating practices.
Regional Focus Supports Repeat Business
Hoetzinger said Century primarily targets drive-to markets, with most revenue generated by guests who live within an hour of its casinos. That proximity supports repeat customer activity, stable demand and targeted marketing, while reducing the company’s reliance on destination tourism.
“Each property enjoys a protective position in attractive North American regional gaming markets with limited new competition and entrenched local market share,” Hoetzinger said.
He said customer trends have remained solid since late last year despite higher gas prices. Broader factors including inflation, employment and general economic conditions have a greater effect on Century’s customers than fuel prices alone, he said, given that most guests live within roughly a 45-minute drive of a property.
Consumer behavior varies by market, Hoetzinger said. Some properties have experienced fewer unique customers but greater spending from visitors, while others are growing both customer counts and visitation. He said the company’s established and higher-value customers have remained resilient, while occasional and more value-conscious customers account for more of the variability.
Nugget, Rocky Gap and Missouri Results
The Nugget posted net operating revenue growth of 16% in the second quarter, while adjusted EBITDA increased 93% from the prior-year period, according to Hoetzinger. The property recorded its third consecutive quarter of year-over-year EBITDA growth.
Hoetzinger said The Nugget’s 1,400-room hotel, convention operations and entertainment business provide competitive advantages that are difficult to replicate. Century sees further opportunity to improve gaming performance, hotel utilization, entertainment programming and convention activity at the property.
Rocky Gap increased EBITDA by 9% year to date despite what Hoetzinger described as a more difficult competitive and consumer environment. He said the Maryland property is focused on disciplined operations, targeted customer acquisition and protecting long-term market share.
Missouri remained a key driver, with the region delivering nine consecutive quarters of year-over-year growth in both revenue and adjusted EBITDA. Century’s retail BetMGM sportsbook at Cape Girardeau has expanded its customer base and created cross-play opportunities, Hoetzinger said.
The company’s new land-based casino in Caruthersville, which opened in late 2024, produced its highest quarterly gross gaming revenue, net revenue, coin-in and slot win in the property’s history during the second quarter. For Missouri’s fiscal year ended in June, Caruthersville recorded the largest percentage increase in gross revenue among the state’s 13 casinos, Hoetzinger said.
Record Quarterly Financial Results
Century reported second-quarter net operating revenue of $152 million, up 1% from the same period a year earlier. EBITDA totaled $31.7 million, an increase of 5%. Hoetzinger said both figures represented second-quarter records for the company.
Across the company’s U.S. and Canadian operations, excluding corporate expense, EBITDA rose 12% in the second quarter and 17% year to date. Every North American property increased both revenue and EBITDA year to date, Hoetzinger said, with most recording double-digit EBITDA growth.
The company expects prior capital investments in gaming products, hotel amenities, database marketing and operations to continue contributing to EBITDA growth. Gaming remains the primary economic driver at most properties, but hotels, dining, racing and entertainment are designed to extend visits, drive repeat business and support broader customer relationships.
Debt Reduction and Capital Discipline
As of June 30, Century had $60.2 million in cash and cash equivalents and $336.5 million of total debt outstanding, resulting in net debt of $276.3 million. Its net debt-to-EBITDA ratio improved to 6.5 times at quarter-end, and management expects the ratio to fall below six times by year-end.
Hoetzinger said Century is entering its strongest cash-flow quarter and has no debt maturities until the second quarter of 2029. The company spent $18 million in cash capital expenditures last year and expects to spend about $15 million this year and approximately the same amount next year.
With a focus on improving free cash flow, reducing leverage and maintaining capital discipline, Hoetzinger said he does not expect Century to become an active participant in mergers and acquisitions for at least the next 12 to 18 months.
About Century Casinos (NASDAQ:CNTY)
Century Casinos, Inc is an international gaming and entertainment company that owns and operates casino properties across North America and Europe. The company offers a full range of gaming services, including slot machines, table games, poker rooms and sports wagering, complemented by hotel accommodations, food and beverage outlets, live entertainment and meeting facilities.
In the United States, Century Casinos’ portfolio includes Century Casino & Hotel Cripple Creek and Century Casino & Hotel Central City in Colorado, as well as Century Casino Cape Girardeau in Missouri.
