Century Casinos Exempt from Gaining Corporate Advantage from Trump's Tax Reduction
Century Casinos Reports Strong Q2 Performance and Future Plans
Century Casinos, the international casino entertainment company, has announced its financial results for the second quarter of 2025, showcasing a significant growth in revenue and earnings.
The company's net operating revenue for the quarter reached $150.8 million, marking a 3% increase year-over-year, and earnings from operations rose 16% to $16.6 million. Despite a net loss attributable to shareholders of $12.3 million, this represents a 70% reduction compared to the prior year13.
In the United States, operations remained stable with nearly flat operating revenues and earnings from operations compared to the previous year, forming a core part of total revenue1. Meanwhile, Canadian casino properties contributed to overall revenue growth and cash flow, although specific regional financials were not separately detailed2. The company's Polish operations continued to show positive momentum, indicating recovery and growth in this international market, contributing to geographic diversification and revenue expansion2.
Century Casinos is currently engaged in a strategic review process to explore options that will enhance shareholder value. This includes evaluating potential asset sales or strategic partnerships in response to third-party inquiries, aiming to optimize their portfolio and drive long-term value creation14.
The company's operations in the US have been bolstered by the strong performance of their Central City, Colorado, casino, which experienced flat quarterly cash flow despite significantly higher gaming and property taxes and high marketing costs. Across the street, Century Casinos' Chamonix resort has generated overflow traffic, proving to be "very helpful for their business"1.
In Canada, Century Casinos' properties have seen an uptick, partly due to property upgrades and possibly Canadians shunning the United States. The company's Caruthersville property in Missouri, for instance, has seen a 26% increase in revenue and a 31% increase in cash flow in the first half of 20251.
Century Casinos' CFO, Margaret Stapleton, explained that depreciation does not affect them due to tax-deferred assets. The company expects no cash infusion from corporate tax cuts passed by the U.S. Congress. However, they anticipate indirect benefits from tax changes affecting tipped workers and senior citizens in the United States1.
Century Casinos exited the quarter with a 6.2-times debt-to-cash flow ratio and no debt maturities until 20291. The company is not planning any further capex investments as their properties never looked better1.
In other developments, Century Casinos' Mountaineer Casino in West Virginia had an excellent quarter, with a 3% revenue boost from igaming and a 12% increase in cash flow. The Mountaineer Casino's facade and porte cochere were remodeled during the quarter1.
Century Casinos' Rocky Gap Resort in rural Maryland was challenged by significant weather events, including nine storms, but saw a clear turnaround in June. Rocky Gap Resort's carded-player revenue was up 7% and spend per trip up 9%. The new hotel at Century's Cape Girardeau property doubled its revenue in the second quarter, with food and beverage jumping 31%1.
Century Casinos is planning to execute a letter of intent with an Eastern European buyer next week for the sale of their casino in Wroclaw, Poland1. The company's Nugget retail rooms were 32% higher priced in August, with comped rooms following a similar booking pattern1.
Despite these positive developments, Century Casinos posted a loss for the quarter, with CEO Ernie Hoetzinger attributing this to a trade-down among casino customers, opting for regional properties over Las Vegas vacations1. Hoetzinger is optimistic about a change in consumer sentiment and a return of lower-value players1.
- Having experienced a significant growth in revenue and earnings, Century Casinos is currently evaluating potential asset sales or strategic partnerships in an effort to enhance shareholder value within the finance sector.
- In addition to their Polish operations showing positive momentum, Century Casinos' Canadian casino properties also contributed to overall revenue growth, indicating potential financial gains in these regions.
