Key points:
- Century Casinos reported a 4% decline in fourth-quarter net operating revenue but a 5% increase in full-year net operating revenue
- Net losses widened significantly, impacted by a $43.7m goodwill impairment at the Nugget Casino Resort
- The company opened a new land-based casino in Caruthersville, Missouri, in November 2024, expected to support future growth
- Management anticipates improved financial performance in 2025 as construction disruptions subside
Century Casinos has announced its financial results for the fourth quarter and full year of 2024.
Despite facing financial setbacks, the company remains optimistic about the future, particularly following the successful opening of its new land-based casino in Caruthersville, Missouri.
Compared to the same period in 2023, Century Casinos reported a decline in key financial metrics.
Net operating revenue in Q4 fell to $137.8m, a 4% decrease. Loss from operations worsened significantly to $36.2m, reflecting a 388% decline.
Net loss attributable to shareholders also deteriorated at $64.9m – a figure that represents a 500% drop. Meanwhile, adjusted EBITDAR declined 17% to $21.1m.
The fourth-quarter performance was significantly influenced by a $43.7m goodwill impairment at the Nugget Casino Resort.
This impairment, based on estimated market conditions and performance, led to a substantial increase in reported losses.
Additionally, rising interest expenses and deferred tax asset adjustments further impacted net earnings.
Good to know: The decline in earnings was largely attributed to macroeconomic challenges affecting consumer spending and impairment losses, particularly at the company's Nugget Casino Resort
For the entire year, Century Casinos continued to experience mixed results. Net operating revenue increased by 5% to $575.9m, while earnings from operations decreased by 93% to $4.3m.
Net loss attributable to shareholders totalled $128.2m – a 355% decline – and adjusted EBITDAR fell by 10% to $102.7m.
Century Casinos operates in the United States, Canada and Poland – with the results across these regions varying.
The United States saw net operating revenue decrease by 3% for the quarter but increase by 10% for the year.
Canada experienced a revenue decline of 7% in the fourth quarter but a 1% growth annually.
Poland had the sharpest decline, with revenue dropping 8% in the fourth quarter and 15% for the full year.
Despite the mixed results, Century Casinos' leadership remains confident about 2025, citing the potential for improved financial performance as it transitions out of a period of construction and renovation.
Commenting on the company's performance, Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, stated: "The highlight of the fourth quarter 2024 was the successful opening of the new land-based casino and hotel in Caruthersville, Missouri on 1 November 2024.
"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 realise returns from our recent growth capital initiatives, we believe adjusted EBITDAR and cash flow will improve in 2025 as compared to 2024.”
