Century Casinos Reports Record Q2 Revenue and Adjusted EBITDA

Century Casinos (NASDAQ: CNTY ) reported second-quarter financial results on Friday. The transcript from the company's second-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

7 million for Q2 2026, representing increases of 1% and 5% respectively, driven by strong performance in North American operations. S. operations showed significant growth, with revenue and adjusted EBITDAR increases of 5% and 12% respectively, highlighting strong performances in Missouri, Colorado, and particularly the Nugget, with a 93% rise in EBITDAR. 2% increase in net operating revenue and an 11% rise in adjusted EBITDA, attributed to operational improvements and capital investments.

Poland operations underperformed due to the closure of a casino and low table game hold, but signs of improvement were noted for future quarters. -centric entity, alongside anticipated asset sales in Canada and Poland. S. market, and highlighted continued operational improvements and strategic capital investments.

Full Transcript OPERATOR Good day, everyone, and welcome to today's Century Casinos Q2 2026 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad.

Please note this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Peter Hoetzinger. Please go ahead, sir. Peter Hoetzinger — Co CEO & President, Founder, Vice Chairman Good morning, everyone, and thank you for joining our earnings call.

First, we would like to remind everyone that we will be discussing forward-looking information. S. federal securities laws, the company undertakes no obligation to update or revise the forward-looking statements, and actual results may differ from those projected. Throughout our call, we refer to several non-GAAP financial measures, including but not limited to adjusted EBITDA.

Reconciliations of our non-GAAP measures to the appropriate GAAP measures can be found in our news releases and SEC filings available in the Investor section of our website. S. Operations, Lyle Randolph. After our prepared remarks, we'll open the call for questions from analysts.

I'm pleased to report that our diversified portfolio delivered a strong, solid quarter as net operating revenue came in at 152 million, a 1% increase over Q2 of last year. 7 million, a 5% increase. Both are all-time records for us. We have never had higher revenues and higher EBITDA in the second quarter in the history of the company.

Congrats to all staff members and management teams at our properties. The results reflect the continued benefits of our diversified business model, the success of our recent capital investment program, and growth in play across our casino portfolio. Poland spoiled the party a bit. That segment was underperforming due to the closure of the casino at the Hilton Hotel in Warsaw as well as an unusually low hold on the gaming tables.

But we are hopeful and already see signs for improved performance over the next several quarters. But moving away from Poland, I want you to focus on the North American operations, which had a great quarter and which generate around 90% of our total results going forward. S. plus Canada plus corporate EBITDA was up a strong 12% in Q2 and up 17% year to date.

Every single property in our North American portfolio has grown revenue as well as EBITDA year to date, with most properties growing EBITDA by double digits year to date. S. revenue and EBITDA were up 5% and 12%, respectively, and Canadian revenue and EBITDA were up 2% and 11%, respectively. Quarter-over-quarter highlights of the quarter were the tremendous performance at the Nugget, with revenue and EBITDA up 16% and 93%, respectively, as well as strong performances in both Missouri and Colorado.

We continued to increase operating efficiencies throughout the business, delivering higher property operating margins than last year. S. properties increased from 24% to 26%. In Canada, the margin grew from 28% to 30% in the quarter.

We benefited from growth across core and retail customers, as well as from a predominantly local repeat customer base, our diversified portfolio, and limited exposure to new supply. As mentioned in our last call, we've been seeing solid customer trends since around December of last year. Despite higher gas prices at most of our properties, the majority of our car customers live within the 45-minute drive, hence the overall economy, inflation, and especially employment are more impactful than gas prices alone.

I would say we also benefit from guests staying closer to home and spending their dollars closer to home for the last several quarters as perhaps a result of the general economic factors including high airfares and gas prices. And last but not least, we benefited from strong returns from the capital investments we made over the last two-plus years. These investments have finally entered the contribution phase, contributing to meaningful EBITDA growth. S.

Operations. S. properties, which drive approximately 75% of our total revenue and EBITDA. Lyle, go ahead please.

Lyle Randolph, Executive Vice President of Operations United States Century Casinos Thank you, Peter. Good morning, everyone. S. operations, a clear pattern continues to emerge.

We are seeing a portfolio that is performing with greater consistency. S. properties. We have invested in our gaming floors, improved our marketing, strengthened our operations, and remained focused on creating a better guest experience.

None of this happened overnight, but those efforts are coming together and the second quarter provides another strong example. S. 6 million of net operating revenue, an increase of 5% over the prior year. 9 million.

Importantly, adjusted EBITDAR grew more than twice as fast as revenue, demonstrating continued operating leverage across the portfolio. And that momentum extends beyond the quarter. S. net operating revenue increased 5% while adjusted EBITDAR increased 16% over the first half of 2025.

S. properties. And that consistency and growth is the real story. As we take a step back and look broadly across the portfolio, we're reminded that Century Casinos does not simply operate seven casinos.

We operate seven unique destinations across five gaming jurisdictions, each with its own history, customer base, and competitive position. Together, they represent an important piece of America's regional gaming heritage. From Rocky Gap, the only casino resort operating within a state park in America, to Mountaineer, where the world's first casino pioneered a new chapter of regional gaming, to the riverboat gaming history of Missouri, to Colorado's historic gold mining communities, and finally to the Nugget, one of northern Nevada's iconic gaming brands. Each property brings something different.

Our strategy is to preserve what makes each one unique while applying a disciplined operating approach that drives stronger and more consistent results. S. portfolio. Net operating revenue increased 16% while adjusted EBITDAR increased more than 93%.

And more importantly, this was Nugget's third consecutive quarter of year-over-year adjusted EBITDAR growth. The Nugget had a strong entertainment calendar in the second quarter. The Brooks & Dunn concert in April sold more than 7,800 tickets and the Keith Urban show in June contributed to over a quarter million dollars in incremental profit. But the Nugget story is much broader than concerts.

Slot coin-in increased approximately 6%, hotel cash revenue increased more than 36%, hotel occupancy increased 19%, and year-to-date retail room nights reached a three-year high. We are also making better use of the hotel during historically softer periods. Transient corporate room nights increased more than 300% during the quarter, and we continue to improve the casino itself through gaming floor optimization, stronger marketing, player development, and a greater focus on the local customer. We are also seeing improvement in the quality of the business.

The number of guests generating more than 400 in average daily theoretical increased approximately 20%. The Nugget is an iconic brand with a significant hotel and convention operation and includes a major entertainment venue. Our opportunity continues to be to make all of those pieces work better together. And the last three quarters of the Nugget tell us that the strategy is not only gaining traction, but we still believe there is significant runway ahead.

Moving on to the Midwest region, our Missouri properties continue to be consistent performers. Our Missouri properties combined have now delivered seven consecutive quarters of year-over-year adjusted EBITDAR growth. Combined net operating revenue increased over 8% in the second quarter. 5% at Caruthersville.

Just as encouraging is the breadth of that growth across Missouri. Theoretical win increased across all of our broader player segments at Cape Girardeau. We continue to see the benefits of improving an established property and becoming more sophisticated in how we engage with our customers. The Riverview Hotel, our food and beverage amenities, our event center, our retail BetMGM sportsbook provide additional reasons to visit and more opportunities to extend the customer relationship beyond the casino floor.

At Caruthersville, the story is the continued maturing of our investment in that market. 2 million. Rated gaming revenue increased 32% and unique guests increased 9%. More importantly, unique guests traveling more than 50 miles increased 15%.

That tells us that the new property is not simply serving the existing local customer, it is expanding Caruthersville's geographic reach. During the quarter, Caruthersville generated its highest quarterly gross gaming revenue, net revenue, coin-in, and slot win in the property's history. And the performance stands out beyond just our own portfolio. For Missouri's fiscal year reported by the Missouri Gaming Commission ending in June, Caruthersville recorded the highest percentage increase in adjusted gross revenue among all 13 casinos in the state.

Collectively, Century Casinos' Missouri operations also generated the highest year-over-year percentage growth in gaming revenue of any casino operator in the state. So we remain very encouraged by the underlying strength of our Midwest region and the continued maturing of our Caruthersville investment. Let's shift now to the East region with Rocky Gap. Rocky Gap delivered a resilient second quarter despite a more challenging competitive and consumer environment.

There were several encouraging underlying trends. Slot coin-in increased approximately 2%, golf cash revenue increased nearly 13%, and hotel room nights increased. Net operating revenue was down slightly, less than 1%, with essentially all of that decline concentrated in the hotel cash revenue and table games. Importantly, disciplined expense management helped offset those pressures and adjusted EBITDA essentially remained flat.

That performance is notable given softer regional gaming trends and the April opening of Happy Valley Casino in State College, Pennsylvania. And we are also reminded that through the first half of the year, Rocky Gap's adjusted EBITDAR remains 9% ahead of prior year. We remain encouraged by the resilience of the business and will continue leveraging Rocky Gap's unique position as a true destination resort. S.

portfolio. Once again this quarter, Mountaineer generated the highest gaming revenue of any property in our company. This reflects the strength of its longstanding customer base in the market, and that market surrounding Mountaineer continues to evolve. Customers today have more gaming options than ever before, including online gaming in mature casino and sports wagering locations.

Importantly, these developments do not suggest that demand for gaming has weakened. Rather, they reinforce that the way guests choose to engage with gaming and entertainment continues to change. We believe that creates an opportunity to deliver the experiences guests cannot replicate elsewhere. Mountaineer's combination of casino gaming, live horse racing, hotel, dining, and entertainment options provide a unique platform to compete in this changing environment.

In quarter two, Mountaineer saw growth in sports betting and iGaming and horse racing revenue increased nearly 40%. At the same time, slots, tables, and hotel revenue were slightly softer. There were some encouraging customer trends. Gaming revenue from our highest-value 400+ ADT customers increased 7% and revenue from younger customers 21 to 39 increased 31%.

The hotel comparison also requires some context. Last year's second quarter benefited from a large construction group that contributed nearly a half million dollars of business before those stays ended in June of 2025. Adjusting for that group, second quarter profitability would have been approximately flat with prior year. Again, through the first half of 2026, Mountaineer adjusted EBITDAR still remains 6% ahead of last year.

Mountaineer provides opportunity, as it also has the largest active customer database in our company, which provides a significant tool as we continue refining segmentation, reinvestment, and player development, and the property's racing heritage remains an important differentiator. This year marks the 75th year of horse racing at Mountaineer. This weekend is the 56th running of the West Virginia Derby. Our focus is to build upon that heritage while creating gaming, entertainment, and hospitality experiences that give customers compelling reasons to visit the property.

Moving to Colorado, we see encouraging momentum. S. portfolio. 5% while adjusted EBITDAR increased more than 32%.

Guest volume increased 16%, coin-in increased nearly 20%, and hotel occupancy reached 74%. Through the first half of 2026, Central City nearly doubled adjusted EBITDAR compared with the prior year. The quality of that growth is also encouraging. We saw improvement across carded and non-carded play while marketing expenses declined as we shifted toward more targeted, detailed initiatives.

So Central City is not simply generating more revenue, we are becoming more efficient in how we generate it. At Cripple Creek, net operating revenue increased 2% and adjusted EBITDAR for the first six months is well ahead of last year. We also saw growth in both rated and unrated play and an increase in unique carded guests. Looking forward, we remain optimistic about both markets.

In Central City, continued public investment in the Gregory Plaza in the historic district leading up the hill to Central City should create additional reasons for visitors to explore beyond Black Hawk's primary casino corridor, and in Cripple Creek, we continue to view the evolution of Chamonix as an opportunity in both the short and long term. As Chamonix continues refining its operations and guest experience, Century Casinos remains well positioned to compete for guests seeking a convenient and established alternative.

Looking further ahead, we believe that a successful destination resort directly across the street has the potential to increase overall visitation to Cripple Creek, creating a larger and more vibrant market from which Century Casinos is in a great position to benefit. Taken together, our Colorado properties continue to illustrate an important element of Century Casinos' operating philosophy. While we cannot always control how our markets evolve, we can control how effectively we position ourselves to benefit from that evolution. S.

operations, what encourages us the most is not any single property, it is the consistency of the progress. Missouri continues its sustained quarter-over-quarter growth. Colorado continues to build momentum.