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Introduction & Market Context
Century Casinos , Inc. (NASDAQ:CNTY) released its Q2 2025 investor presentation showcasing modest revenue growth amid ongoing efforts to address leverage concerns. The regional casino operator, which runs 16 properties across the United States, Canada, and Europe, saw its stock trade at $2.21 as of August 6, 2025, representing a 5.24% increase on the day and showing some recovery from its 52-week low of $1.30.
The presentation comes after a challenging Q1 2025, when the company missed earnings expectations with an EPS of -0.67 and revenue of $130.4 million, below analyst forecasts. However, the Q2 results suggest some operational improvement as the company continues its strategic review process announced earlier this year.
Quarterly Performance Highlights
Century Casinos reported Q2 2025 net operating revenue of $150.8 million, a 3% increase from $146.4 million in Q2 2024. Adjusted EBITDAR improved to $30.3 million, up 10.4% from $27.4 million in the same period last year.
As shown in the following chart of quarterly performance, the company has demonstrated sequential improvement in 2025 after a challenging start to the year:
The United States remains Century’s primary market, accounting for 71% of net operating revenue and 77% of adjusted EBITDAR in Q2 2025. Poland contributed 16% of revenue and 6% of EBITDAR, while Canadian operations represented 13% of revenue and 17% of EBITDAR.
Segment Performance
The company’s performance varied significantly across its three main operating regions. The Midwest Region, which includes properties in Colorado and Missouri, delivered the strongest results with Q2 2025 adjusted EBITDAR of $15.5 million, up from $14.6 million in Q2 2024.
The following chart illustrates the Midwest Region’s consistent performance:
The East Region, encompassing properties in West Virginia and Maryland, also showed improvement with Q2 2025 adjusted EBITDAR of $7.9 million compared to $7.6 million in Q2 2024:
However, the West Region (Nevada) continued to struggle, with Q2 2025 adjusted EBITDAR of $0.0 million, showing no improvement from the previous year:
Detailed Financial Analysis
Century Casinos’ balance sheet remains heavily leveraged, with net debt of $252.5 million as of June 30, 2025. The company’s net debt leverage ratio stands at 6.2X, though management anticipates this will improve to between 4.7X and 6.0X by year-end.
The following slide details the company’s current leverage metrics:
This high leverage position continues to be a concern for investors, especially given the company’s mixed operational performance. The trailing twelve-month adjusted EBITDAR stands at $104.4 million, while rent payments total $63.6 million for the same period.
Strategic Initiatives
Century Casinos highlighted several growth initiatives in its presentation, including the recently opened Caruthersville Permanent Land-Based Casino (EPA:CASP) & Hotel in Missouri, which began operations on November 1, 2024. This $51.9 million project, funded by VICI Properties (NYSE:VICI), features 569 slot machines, nine table games, and 74 hotel rooms.
The company is also investing in various smaller renovation and improvement projects across its portfolio, as shown in this overview of value creation projects:
Perhaps most significantly, Century Casinos has initiated a comprehensive strategic review process to explore options for enhancing shareholder value. This includes potential asset sales, strategic partnerships, and capital structure optimization.
The strategic review details are outlined in the following slide:
The company has engaged Macquarie Capital as financial advisor and Faegre Drinker as legal counsel for this process, though management emphasized that no decisions have been made and there is no guarantee that any transaction will result from the review.
Forward-Looking Statements
For 2025, Century Casinos forecasts capital expenditures of approximately $17.9 million and cash rent payments of approximately $66.5 million related to its Master Lease and Nugget Lease. The company expects to make approximately $5.5 million in scheduled principal payments on long-term debt and finance leases, with gross cash interest estimated between $32.9 million and $35.2 million.
Management anticipates improved cash generation during the remainder of 2025 and into 2026, which would help address leverage concerns. The company also noted that recently implemented tariffs are not expected to have a material negative impact on its business overall.
Century Casinos continues to position itself as a regional gaming operator with properties strategically located in growing markets, as illustrated in its investment highlights:
The company’s North American footprint spans multiple states and provinces, providing some geographic diversification:
Conclusion
Century Casinos’ Q2 2025 presentation portrays a company making incremental progress amid significant challenges. While revenue and EBITDAR showed modest improvement compared to the previous year, high leverage remains a concern that the ongoing strategic review process aims to address.
The company’s focus on regional "drive-to" markets has provided some stability, but performance varies significantly across regions, with the West segment continuing to underperform. As Century Casinos navigates its strategic options and works to improve its balance sheet, investors will be watching closely for signs of sustainable improvement in both operations and financial position.
Full presentation:
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