Key points:
- Century Casinos reported a 4% decline in Q4 revenue to $137.8m, with adjusted EBITDAR down 17% year-on-year
- Shareholders questioned leadership over stock price declines and called for divestment from Poland and Canada
- Management defended recent investments, highlighting strong early results from the new Missouri casino
Century Casinos' Q4 2024 earnings call saw direct investor criticism, with shareholders demanding answers on stock underperformance and the company’s strategic direction.
One investor, identifying himself as Mike, questioned whether leadership was capable of turning the business around, calling its performance “disappointment after disappointment.”
Mike went on to urge Century to exit Poland and Canada and focus solely on US operations.
Co-CEO Peter Hoetzinger argued that while Canada remained under review, exiting Poland was complex due to joint-ownership agreements.
Hoetzinger also pointed out that economic conditions, particularly inflationary pressures, had impacted lower-end customers, a key demographic for Century.
Good to know: Q4 revenue fell 4% year-on-year to $137.8m, with adjusted EBITDAR down 17% to $21.1m
A $43.7m goodwill impairment at the Nugget Casino Resort contributed to a net loss of $64.9m. Despite these challenges, management highlighted the newly opened Caruthersville, Missouri casino, which reported a 27% revenue increase since its November 2024 launch.
Another investor, JT, suggested executives demonstrate confidence by buying company shares. Co-CEO Erwin Haitzmann responded that legal restrictions limited insider buying.
Beyond Missouri, the company struggled in other markets. Colorado saw a 7% revenue drop, while West Virginia and Maryland properties declined 7%. Nevada’s Nugget Casino saw revenue fall 10%, but cost reductions drove a 46% EBITDAR increase.
Executives avoided 2025 earnings guidance, citing economic uncertainty, but maintained that recent investments would drive long-term growth. However, investor dissatisfaction suggests continued scrutiny in the months ahead.
