This article first appeared on GuruFocus.
Net Operating Revenue: $152 million, a 1% increase year-over-year, an all-time record for the second quarter.
Adjusted EBITDAR: $31.7 million, a 5% increase year-over-year, an all-time record for the second quarter.
US Operations Revenue: $111.6 million, up 5% year-over-year.
US Adjusted EBITDAR: $28.9 million, up 12% year-over-year.
US Property Operating Margins: Increased from 24% to 26%.
Canada Net Operating Revenue: $20.4 million, up 2.2% year-over-year.
Canada Adjusted EBITDAR: $6.2 million, up 11% year-over-year.
Canada Property Operating Margins: Increased from 28% to 30%.
Poland Net Operating Revenue: $19.9 million for the quarter.
Poland Adjusted EBITDAR: Approximately $0.1 million for the quarter.
Nugget Revenue: Increased 16% year-over-year.
Nugget Adjusted EBITDAR: Increased more than 93% year-over-year.
Missouri Combined Net Operating Revenue: Increased over 8% in the second quarter.
Missouri Adjusted EBITDAR: Increased 9.6% at Cape Girardeau and 5.5% at Caruthersville.
Central City Net Operating Revenue: Increased approximately 11.5%.
Central City Adjusted EBITDAR: Increased more than 32%.
Cripple Creek Net Operating Revenue: Increased 2%.
Rocky Gap Net Operating Revenue: Down slightly less than 1%.
CapEx: $3.1 million in Q2, bringing year-to-date CapEx to $5.7 million; full-year 2026 forecast of approximately $15 million.
Cash and Cash Equivalents: $60.2 million as of June 30.
Total Debt Outstanding: $346.5 million.
Net Debt: $276.3 million.
Net Debt-to-EBITDA Ratio: Improved to 6.5 times.
Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Century Casinos Inc (NASDAQ:CNTY) achieved all-time record Q2 net operating revenue of $152 million and adjusted EBITDAR of $31.7 million, up 1% and 5% year-over-year, respectively.
North American operations (US and Canada) delivered strong growth, with EBITDAR up 12% in Q2 and 17% year-to-date, driven by double-digit EBITDAR growth at most properties.
The Nugget property had a standout quarter with revenue and EBITDAR up 16% and 93%, respectively, marking its third consecutive quarter of year-over-year EBITDAR growth.
Missouri properties delivered seven consecutive quarters of year-over-year adjusted EBITDAR growth, with Caruthersville achieving its highest quarterly gross gaming revenue, net revenue, coin-in, and slot win in property history.
The company is making progress on deleveraging, with net debt-to-EBITDA improving to 6.5 times and expected to fall below 6 times by year-end, while also exploring strategic sales of international operations to unlock value.
July showed continued momentum with double-digit EBITDAR growth, and Poland generated nearly as much EBITDA in July as it did in the entire first half of the year, indicating a recovery in that segment.
Negative Points
Poland’s performance was weak due to the closure of the Hilton Warsaw Casino and an unusually low hold on gaming tables, leading to adjusted EBITDAR of only approximately $0.1 million for the quarter.
The newly opened Wroc?aw Casino in Poland generated expected startup losses as it builds awareness and establishes its customer base, weighing on Q2 results.
Rocky Gap faced a challenging competitive environment with the April opening of Happy Valley Casino in Pennsylvania, leading to a slight decline in net operating revenue.
Mountaineer’s hotel revenue was negatively impacted by the loss of a large construction group that contributed nearly $500,000 in business in the prior year quarter.
The company’s high net debt-to-EBITDA ratio of 6.5 times remains elevated, and the deleveraging process is dependent on the successful sale of international assets, which is uncertain and may take time.
The launch of Alberta’s open online sports betting and iGaming market poses a potential long-term risk of cannibalization to the company’s Canadian properties, though no immediate impact has been observed.
Q & A Highlights
Q: This morning, with all the major properties performing well, another quarter of solid growth here and free cash flows turning in quarter, how has this impacted the portfolio sale discussions and M&A conversation, if at all? And then I guess somewhat related to that, my usual question on the term loan, where are we in the review process and, where are the puts and takes of how you are thinking about the deleveraging discussion? A: Peter Hoetzinger (President & Co-CEO): In terms of the sales process, it’s an over the last about three quarters or so we worked very hard at that. And given the diverse nature of our portfolio, we’ve explored a number of different avenues to unlock value. And we’re currently focused on monetizing our international operations to become a fully US-entry company and we use leverage. We make congress on these initiatives. Slowly but surely. Poland is the more difficult one with the one next door and that changing regulatory environment. Apparently, two groups are in due diligence works. We’ve not given exclusivity to anybody, so let’s see what the outcome varies. We should get more clarity in a couple of months. Very hard to say. And in Canada, we have two packages. We could sell all four together or we go the direction of selling the two racinos in one package and the two commercial casinos in another package. There’s interest for both. And again, one is a little bit more ahead than the other. Think that at least for one of those packages, we should be able to publicly disclose something before the end of the year. And that impacts the term loan B pay down because with our current cash position. Yes, we have some freely available, but we’d rather wait until we have more clarity on the estate sales and then you can make a meaningful pay down. Also, we are in discussion with our lenders to get more flexibility.
Q: Nice results from the Nugget again this quarter. Looks like everything’s coming together really nicely there. Can you just remind us what operational initiatives, if any, remain unfinished at that property? And how much incremental EBITDAR opportunity you believe remains over the next, let’s say, 12 to 24 months? A: Lyle Randolph (Executive VP of US Operations): I think that, I mean, these initiatives are ongoing and we’re seeing the results of those each week. And as we see the results coming in, we’re continuing to see where we’ve made adjustments and we’re seeing the positive results from that. With that being said, we still think that there’s a lot of ramps up and a lot of opportunity as we move forward. And we’re going to try to get to that. We’re going to try to, again, as was previously mentioned, look for the lowest hanging fruit and try to adjust those things. The things we can move quickly, making sure that, obviously expenses that we’re controlling those pieces, but again, driving additional gaming revenue that’s going to flow quickly. And again, making sure that our database marketing and our marketing efforts in general are focused on driving the right things. If you would go out to the Nugget, you would see, I mean, these entertainment events, all the different things. We had the 4th of July celebration that brought 10,000 people to the property around our facility. Those things are bringing people and the market is there. Again, we just have to make sure we’re prepared to maximize the revenue and the profitability as we bring those folks in.
Q: Maybe starting off in the US and specifically in Missouri, really strong quarter here. Curious just how much you think this has been driven or helped by the February ruling on skill gains and enforcement that seem to start late Q1, early Q2. And then moving forward, if this has been a big tailwind for those assets, how do you think about this moving forward just based on your read of how many machines that were previously in the state have been rendered inactive and the pace of enforcement going forward? A: Lyle Randolph (Executive VP of US Operations): Obviously, we’re very excited about the action that the Missouri Attorney General took this spring and with the ruling regarding these illegal games in the state. And so, we do think that there’s positive impact in Q2. Those impacts were likely kind of spread toward the closer to the end of the quarter as we still saw locally, especially still locations that had those games. And in fact, we still see some of those. So we think that there’s still continued improvement with the enforcement that we may even see additional opportunity as Missouri begins to enforce the law and get those illegal games out of these locations.
Q: Lyle, welcome, and I actually want to maybe start with you, and you ran through a lot of comments and a very comprehensive kind of overview of the portfolio. In the couple of months that you’ve been here, I guess can you just talk about any of the low-hanging fruit that you think can immediately be addressed to help. The assets seem to be performing pretty well, but are there any low-hanging fruit to help these assets perform even better that you can see over the last couple of months? A: Lyle Randolph (Executive VP of US Operations): As I mentioned, there were a lot of the groundwork has been set, but certainly one of the keys is that we want to ensure that our slot floors are maximized for each of the markets. One of the things we’re seeing is that the slot customer is changing. Today, a customer may see a game on social media. They may watch an influencer playing it, and they come in and they expect to find that game. And we want to be competitive in that environment. That means getting newer games and product on the floor, whether that’s conversions, just making sure we’re utilizing our leased product as best we can. We’re going to be very careful about how we do that. We just want to maximize our return on that investment. We may not, in some of our markets, be able to compete with the newest building, but what we can do is we can compete on the quality of the gaming experience on those gaming floors. So to me, that’s the key piece. And that’s what the rest of the business will revolve around, right, making sure that we have the games people want to play, the slot floor is optimized, and then all the other pieces start to come together. Then we can start driving database marketing and pushing those people in to give us another try. There’s large opportunities within our inactive and really that deep inactive to get people back to these properties and to show them the improvements that we’ve made.
Q: And then maybe one on Poland, can you just give us some more color on the signs of improvement that you mentioned in that market and how we should be thinking about the balance of the year as road call ramps? A: Erwin Haitzmann (Chair
For the complete transcript of the earnings call, please refer to the full earnings call transcript.