Century Casinos Highlights Q4 Strength Amid Debt Overhang

Century Casinos ((CNTY)) has held its Q4 earnings call. Read on for the main highlights of the call.

Century Casinos’ latest earnings call painted a cautiously upbeat picture, with management stressing operational progress despite several headwinds. The company delivered modest full-year adjusted EBITDAR growth and a notably strong fourth quarter, while acknowledging weather disruptions, lost sports betting income, higher rent and elevated leverage that continue to weigh on results.

Full-Year EBITDAR Growth Amid Structural Headwinds

Century Casinos reported adjusted EBITDAR up 3% year over year for full-year 2025, showing resilience in a choppy operating environment. Management emphasized that excluding the loss of Colorado sports betting income and temporary licensing issues in Poland, EBITDAR would have grown about 5%, underscoring healthier underlying demand.

Q4 Profitability Strong Despite Tough Winter Weather

Fourth-quarter 2025 net operating revenue was flat even as unusually severe December weather hit traffic at several properties. The company still expanded adjusted EBITDAR by 13% year over year in the quarter, signaling improved cost control and better mix at key assets despite the weather drag.

Caruthersville Transformation Drives Outsized Earnings Gains

Century Casino and Hotel Caruthersville stood out as a major success story, with Q4 EBITDA rising to $6.1 million from $4.9 million a year ago. For the full year, EBITDA increased to $24.4 million from $19.0 million, a roughly 28% jump helped by the move to a permanent land-based facility and stronger play from higher-value customers.

Broad-Based Q4 Strength Across Multiple Properties

Management highlighted double-digit Q4 EBITDA growth at several properties, including its Colorado casinos, Mountaineer and Caruthersville. Nugget also improved, with Q4 EBITDA increasing from €1.1 million to €1.3 million, roughly an 18% gain, suggesting momentum is building off a weaker full-year base.

Steady Growth in Alberta Underpins Canadian Results

In Canada, the Alberta portfolio delivered steady expansion, with 2025 slot coin-in up 4%, net revenue up 2% and EBITDA up 1% to €20.3 million. Fourth-quarter trends were even stronger, as slot coin-in rose 4%, net revenue 5% and EBITDAR 5% to €4.9 million, providing a stable earnings pillar for the group.

Poland Operations Rebound as Licensing Issues Ease

Polish operations showed a sharp rebound once administrative relocation delays subsided, with Q4 net operating revenue rising 4%. EBITDA surged 245% to €0.9 million, and with all licenses valid through at least 2028 plus a second Brodnica venue opening in February 2026, management sees the market returning to a more predictable footing.

Early 2026 Momentum and Retail Sports Betting Wins

Executives cited strong first-quarter momentum so far in 2026, including record February metrics at Cape Girardeau and the highest monthly hotel occupancy since that property opened. Cape Girardeau’s BetMGM sportsbook reportedly posted the state’s highest retail handle in January, while St. Albert achieved its best coin-in for a 29-day February, reinforcing the positive start.

Balance Sheet, Leverage and CapEx Trajectory

Century ended 2025 with $69 million of cash and equivalents and total debt of $338 million, putting net debt at $269 million. Net debt to EBITDA sits at 6.9 times, or 7.6 times on a lease-adjusted basis, but no maturities until 2029 and a planned CapEx decline from €18 million in 2025 to €14–15 million in 2026 should support improved cash generation.

Sports Betting Lost Income and One-Offs Cloud Comparisons

Year-on-year comparisons were skewed by the loss of sports betting income in Colorado and one-time termination payments booked in 2024. Cripple Creek benefited from a $1.1 million payment last year and Central City from a $1.4 million payment, contributing to reported full-year EBITDA declines at these properties despite more stable underlying operations.

Competitive and Weather Pressures Hit Cape Girardeau

Century Casino Cape Girardeau posted a Q4 EBITDA decline to $5.9 million from $6.8 million, a drop of about 13%, with full-year EBITDA down 3.5% to $24.7 million. Management linked the softness to market share shifts toward nearby Caruthersville and a new competitor in a feeder market, compounded by harsh winter conditions.

Rocky Gap and Nugget Face Full-Year EBITDA Headwinds

Rocky Gap’s full-year EBITDA slipped to $13.2 million from $14.0 million, with Q4 down to $2.9 million from $3.2 million as weather and local conditions weighed on results. Nugget saw full-year EBITDA decline to €9.1 million from €9.7 million, though its stronger Q4 performance suggests early signs of an operational turnaround.

Severe Weather Disruptions Complicate Quarterly Patterns

Management noted that unusually severe weather materially affected results at several properties during the fourth quarter and earlier in the year, notably at Mountaineer and Rocky Gap. While the company did not quantify the total revenue or EBITDA hit, the disruptions make seasonal comparisons more difficult and mask some underlying trends.

Higher Rent Burden at Caruthersville Weighs on Cash Flow

Despite Caruthersville’s strong EBITDA growth, rising lease costs are eating into free cash flow, with rent payable to VICI increasing from $7.5 million in 2024 to $11.6 million in 2025. That $4.1 million jump tempers the economic benefit from what is otherwise a high-margin, fast-improving flagship property in the portfolio.

Leverage Remains Elevated Amid Strategic Review Uncertainty

With net debt to EBITDA at 6.9 times, or 7.6 times including leases, leverage remains a key investor focus, even though maturities are pushed out to 2029. The company continues a strategic review, with some assets under exclusivity for potential transactions, creating near-term uncertainty around the ultimate portfolio mix and capital allocation priorities.

Guidance Points to Higher Earnings and Lower CapEx

Management guided to higher EBITDAR and cash flow in 2026 and beyond, pointing to strong early-year trends and double-digit EBITDA growth so far at every U.S. and Canadian property. They plan roughly $4.5 million of CapEx per quarter, with company cash CapEx falling to €14–15 million in 2026, and stressed that excess cash will favor debt reduction while strategic review outcomes are pending.

Century Casinos’ call suggested a company moving in the right direction operationally but still navigating structural challenges and balance sheet constraints. For investors, the key takeaways are improving property trends, a visible path to higher cash flow via lower CapEx, and potential portfolio actions, all set against the backdrop of high leverage and competitive pressures.