Century Casinos (CNTY 15.84%), an international casino operator with properties in the United States, Canada, and Poland, reported its second quarter 2025 earnings on August 6, 2025. GAAP revenue reached $150.8 million, topping analyst expectations of $148.7 million. However, GAAP earnings per share (EPS) were a loss of $0.40, falling short of the consensus estimate of a $0.36 loss. The quarter marked an improvement in operating margin and a dramatic narrowing of the company’s net loss. Though continued high interest and lease expenses kept bottom-line results under pressure. Overall, the company’s developments in Missouri and Poland supported a modest recovery against mixed performance in mature U.S. regions.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | ($0.40) | ($0.36) | ($1.36) | 70.6% |
| Revenue (GAAP) | $150.8 million | $148.7 million | $146.4 million | 3% |
| Adjusted EBITDAR | $30.3 million | $27.4 million | 10% | |
| Net Loss Attributable to Shareholders (GAAP) | ($12.3 million) | ($41.6 million) | 70.4% | |
| Operating Margin (GAAP) | 11.0% | 9.7% | 1.3 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Century Casinos: Business Model and Focus Areas
Century Casinos is a gaming company that operates casinos and related hotels in North America and Europe. Its business centers on managing and developing mid-sized regional casino resorts, focusing especially on capturing local and drive-in tourists. The company’s presence spans the U.S. Canada, and Poland, reflecting a strategy rooted in geographic diversification and market-specific operational tactics.
Key drivers for the business include expanding its footprint through property developments and acquisitions, staying ahead of regulatory requirements in each region, and leveraging targeted customer loyalty and database marketing programs. The company emphasizes geographic diversification to balance performance across distinct markets, critical for steady cash flow and risk control in a tightly regulated and competitive sector.
Notable Developments During the Quarter
GAAP revenue beat analyst expectations by $2.1 million and achieved 3% year-over-year growth. Margin gains were underpinned by contributions from new properties, notably the ramp-up of the Caruthersville, Missouri casino and hotel. Since its November 2024 opening, Caruthersville has posted a 26% increase in revenue and a 31% rise in adjusted EBITDAR (non-GAAP), supporting improved consolidated results. The largest individual market, the United States, delivered flat net operating revenue (GAAP) of $106.1 million. Within the U.S. Missouri performed strongly while Colorado reflected lost sports betting income and cost pressures.
International properties played a larger role in the quarter’s results. The Poland segment stood out, showing net operating revenue growth of 23% and a more than fourfold jump in segment-level Adjusted EBITDAR (non-GAAP). This growth was driven by property-level strength in Poland. Conversely, Poland’s Warsaw Hilton location closed in June 2025, a negative offset partly balanced by the new Wroclaw property expected to open in Q4 2025. In Canada, GAAP revenues rose 1% compared to the prior year, though profitability shrank modestly.
From a financial perspective, adjusted EBITDAR (a non-GAAP measure of operating profit that adds back rent and non-cash charges for a more standardized look at core operations) rose to $30.3 million, up 10%. The consolidated Adjusted EBITDAR margin (non-GAAP) improved to 20%. The net loss attributable to shareholders (GAAP) narrowed sharply to $12.3 million, a 70% improvement compared to the prior year. However, total interest and lease expenses remain elevated, with net interest expense (GAAP) at $25.9 million and lease obligations at $712.9 million as of June 30, 2025.
There were important one-off items in the period. The company launched a formal strategic review to assess possibilities for mergers, partnerships, or the sale of some or all of its assets. This process signals a recognition of ongoing capital structure challenges and the need to consider alternative paths to unlock value for shareholders. Management also highlighted the upcoming debut of online sports betting in Missouri through a BetMGM partnership, set for Q4 2025 and expected to provide additional revenue streams.
Business Outlook and Investor Considerations
Management instead pointed toward continued operational discipline, the reduction of outstanding debt, and pursuit of strategic alternatives, all while hinting at potential asset sales. The quarter also marked the practical end of a multi-year capital spending cycle. The opening of the second Wroclaw casino in Poland and the launch of sports betting in Missouri are both scheduled for Q4 2025, which could serve as potential catalysts for future results.
Looking ahead, investors may focus on the sustainability of improving operating margins, the pace of new property ramp-ups, and reduction in high leverage. The announced strategic review adds uncertainty and could lead to significant changes in the company’s business profile. It will be important to watch the outcomes of pending property developments and any moves resulting from management’s review process.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
