Century Casinos announced its financial results for the fourth quarter and full year of 2024.
Despite facing financial setbacks, the company remains optimistic about the future, especially after the successful opening of a new land-based casino in Caruthersville, Missouri.
Compared to the same period in 2023, Century Casinos reported a decline in key financial indicators.
Fourth quarter net operating revenue fell to $137.8 million, a decrease of 4%. Operating losses increased significantly to $36.2 million, a decrease of 388%.
Net losses attributable to shareholders further expanded to $64.9 million, a decrease of 500%. Meanwhile, adjusted EBITDAR fell 17% to $21.1 million.
The fourth quarter performance was severely impacted by a $43.7 million goodwill impairment at Nugget Casino Resort.
The impairment, based on estimated market conditions and performance, led to a significant increase in reported losses.
Additionally, increased interest expenses and adjustments to deferred tax assets further affected net earnings.
It is worth noting that the decline in profits is mainly attributed to macroeconomic challenges affecting consumer spending and impairment losses, particularly at the company's Nugget Casino Resort.
Looking at the full year, Century Casinos had a mixed performance. Net operating revenue grew 5% to $575.9 million, while operating profit fell 93% to $4.3 million.
Total net losses attributable to shareholders amounted to $128.2 million, a decrease of 355%, and adjusted EBITDAR fell 10% to $102.7 million.
Century Casinos operates in the United States, Canada, and Poland, with varying performance across these regions.
In the United States, net operating revenue fell 3% this quarter, but grew 10% for the year.
In Canada, fourth quarter revenue fell by 7%, but grew by 1% year-over-year.
Poland saw the most significant decline, with fourth quarter revenue falling 8% and annual revenue down 15%.
Despite the mixed results, Century Casinos' leadership remains confident about 2025, stating that as the company moves out of the construction and renovation phase, there is potential for financial performance improvement.
Century Casinos Co-CEOs Erwin Haitzmann and Peter Hoetzinger commented on the company's performance, saying: "The highlight of the fourth quarter of 2024 was the successful opening of a new land-based casino and hotel on November 1, 2024, in Caruthersville, Missouri.
"We continue to see a softening trend among retail and low-end customers, which we believe is due to macroeconomic impacts on consumer spending in our markets. However, with no construction or renovation disruptions and the opportunity to benefit from our recent capital growth plans, we believe that adjusted EBITDAR and cash flow in 2025 will improve over 2024."
