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1. Company Snapshot

1.a. Company Description

Century Casinos, Inc.operates as a casino entertainment company in the United States, Canada, and Poland.The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities.


As of March 8, 2022, it operated two ship-based casinos.The company was founded in 1992 and is based in Colorado Springs, Colorado.

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1.b. Last Insights on CNTY

Century Casinos' recent performance was negatively impacted by a Q4 loss of $0.69 per share, exceeding the Zacks Consensus Estimate of a loss of $0.59. The company's revenue fell short of estimates, indicating a decline in its gaming and hospitality business. Furthermore, the absence of any notable acquisitions or new product launches suggests a lack of strategic growth initiatives. Additionally, the company's recent earnings release and conference call transcript reveal no significant updates on its business operations or financial performance.

1.c. Company Highlights

2. Century Casinos' Q3 Results Exceed Expectations Amid Regional Strengths

Century Casinos reported net operating revenue of $154 million for Q3, driven by strength in the East and Midwest regions as well as in Canada, offset by weakness in the West region and in Poland. Adjusting for one-time effects, Q3 EBITDAR would have increased by about 5%, beating consensus estimates. The company's EPS came in at -$0.35, missing estimates of -$0.28. Despite the earnings miss, the company's EBITDAR growth was driven by strong gaming revenue across various segments, including a 29% increase in gaming revenue at Century Casino and Hotel Caruthersville. As Erwin Haitzmann noted, "Gaming revenue grew strongly across all segments. High Value up 82%, core, up 29% and retail up 22%."

Publication Date: Nov -21

📋 Highlights
  • Q3 Net Revenue:: $154 million driven by East, Midwest, and Canada; West and Poland reported weakness.
  • Century Casino Caruthersville:: Gaming revenue up 29%, EBITDA rose 35% to $6.1 million (first anniversary performance).
  • Mountaineer (West Virginia):: EBITDAR flat YoY but up $0.5 million after adjusting for a $0.5M bonus reversal; parimutuel handle rose 26%.
  • Canada Performance:: Slot coining +5.8%, total revenue +1.6%, EBITDA +11.1% to $5.4 million (St. Albert facade upgrades key driver).
  • Balance Sheet Metrics:: $78 million cash, $261 million net debt, net debt-to-EBITDA ratio of 6.9x (7.6x on lease-adjusted basis).

Segment Performance

The company's performance across various segments was mixed. Century Casino and Hotel Caruthersville delivered a 35% increase in EBITDA to $6.1 million, while Century Casino and Hotel Cape Girardeau's EBITDA was slightly below last year's record quarter. In Canada, slot coining was up 5.8%, total revenue up 1.6%, and EBITDA up 11.1% to $5.4 million, driven by disciplined cost management and a successful facade upgrade at Century Downs in St. Albert.

Balance Sheet and Capital Allocation

The company's cash and cash equivalents stood at $78 million, with a total principal amount of debt outstanding at $339 million, resulting in net debt of $261 million. The net debt-to-EBITDA ratio was 6.9x, and on a lease-adjusted basis, the ratio was 7.6x. The company is considering its balance sheet for share buybacks versus debt paydown, with no decision made yet. Analysts estimate next year's revenue growth at 7.2%.

Valuation and Outlook

With a P/S Ratio of 0.07 and an EV/EBITDA ratio of 20.98, the market seems to be pricing in a relatively modest growth trajectory. However, the company's ROE is 273.78%, and ROIC is 0.45%, indicating a potentially improving return profile. The Net Debt / EBITDA ratio is 20.12, which may be a concern for investors. As the company undergoes a comprehensive strategic review process, investors will be watching for potential changes in capital allocation and growth initiatives.

3. NewsRoom

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BetMGM Launches Sports Betting in Missouri

Dec -01

Source: prnewswire.com

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Century Casinos Goes Live with Online Sports Betting and Retail Sportsbook at Century Casino & Hotel Cape Girardeau in Partnership with BetMGM in Missouri

Dec -01

Source: prnewswire.com

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Century Casinos (NASDAQ:CNTY) & Flutter Entertainment (NYSE:FLUT) Financial Survey

Nov -19

Source: defenseworld.net

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Century Casinos, Inc. (CNTY) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Century Casinos (CNTY) Reports Q3 Loss, Lags Revenue Estimates

Nov -11

Source: zacks.com

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Century Casinos, Inc. Announces Third Quarter 2025 Results

Nov -10

Source: prnewswire.com

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Century Casinos Announces Rescheduled Dates of Third Quarter 2025 Earnings Release and Conference Call

Nov -05

Source: prnewswire.com

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Century Casinos (CNTY) to Release Earnings on Thursday

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.44%)

6. Segments

Gaming

Expected Growth: 7%

Century Casinos' 7% gaming growth driven by increasing demand for entertainment, expansion into new markets, and strategic partnerships. Additionally, investments in technology and digital platforms enhance customer experience, while effective marketing strategies attract new players. Furthermore, the company's diversified portfolio of casinos and racetracks mitigates risks and provides opportunities for cross-selling.

Food and Beverage

Expected Growth: 5%

Century Casinos' 5% growth in Food and Beverage is driven by increasing visitation and spending at its casinos, particularly in Colorado and Alberta. Expanding amenities, such as restaurants and bars, and enhancing the overall gaming experience are attracting more customers. Additionally, effective marketing strategies and loyalty programs are contributing to higher revenue per user.

Hotel

Expected Growth: 4%

Century Casinos' hotel segment growth is driven by increasing gaming revenue, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on enhancing the overall gaming experience, improving operational efficiencies, and investing in marketing initiatives contribute to its growth. Furthermore, the rising demand for entertainment and leisure activities also supports the segment's growth.

Other

Expected Growth: 3%

Century Casinos, Inc.'s 'Other' segment growth is driven by increasing revenue from its Polish casinos, expansion of its Mountaineer Casino in West Virginia, and growing online sports betting operations. Additionally, the company's focus on cost savings initiatives and strategic partnerships contribute to its growth momentum.

Pari-mutuel, Sports Betting and iGaming

Expected Growth: 8%

Century Casinos, Inc.'s 8% growth in Pari-mutuel, Sports Betting, and iGaming is driven by increasing online adoption, strategic partnerships, and geographic expansion. Additionally, the rise of mobile betting, favorable regulations, and growing demand for digital entertainment also contribute to this growth.

7. Detailed Products

Casinos

Century Casinos, Inc. owns and operates casinos that offer a range of gaming options, including slot machines, table games, and poker rooms.

Hotels

The company operates hotels and resorts that offer luxurious accommodations, dining, and entertainment options.

Restaurants and Bars

Century Casinos, Inc. operates a range of restaurants and bars that offer fine dining, casual eats, and drinks.

Gaming Promotions

The company offers various gaming promotions, including loyalty programs, tournaments, and giveaways.

Entertainment

Century Casinos, Inc. hosts various entertainment events, including concerts, comedy shows, and sporting events.

Racing

The company operates off-track betting facilities and offers horse racing and other racing events.

8. Century Casinos, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Century Casinos, Inc. faces moderate threat from substitutes as customers have limited alternatives for gaming and entertainment. However, the rise of online gaming and entertainment options poses a moderate threat.

Bargaining Power Of Customers

Century Casinos, Inc. has a low bargaining power of customers as customers have limited negotiating power due to the lack of alternatives and the company's strong brand presence.

Bargaining Power Of Suppliers

Century Casinos, Inc. faces moderate bargaining power of suppliers as it relies on a few key suppliers for gaming equipment and services. However, the company's scale and negotiating power mitigate this threat.

Threat Of New Entrants

Century Casinos, Inc. faces a high threat of new entrants as the gaming industry is attractive and has low barriers to entry. New entrants can easily enter the market, posing a significant threat to the company's market share.

Intensity Of Rivalry

Century Casinos, Inc. operates in a highly competitive industry with intense rivalry among existing players. The company faces significant competition from established players, which can lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.48%
Debt Cost 11.86%
Equity Weight 26.52%
Equity Cost 16.98%
WACC 13.22%
Leverage 277.01%

11. Quality Control: Century Casinos, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Inspired Entertainment

A-Score: 5.4/10

Value: 9.1

Growth: 6.9

Quality: 6.0

Yield: 0.0

Momentum: 5.5

Volatility: 5.0

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PlayAGS

A-Score: 5.3/10

Value: 5.1

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

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Everi

A-Score: 4.8/10

Value: 5.1

Growth: 4.7

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 8.3

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Century Casinos

A-Score: 3.6/10

Value: 8.8

Growth: 2.9

Quality: 3.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

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Full House Resorts

A-Score: 3.5/10

Value: 9.6

Growth: 2.9

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

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Ballys

A-Score: 2.1/10

Value: 5.2

Growth: 4.4

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.46$

Current Price

1.46$

Potential

-0.00%

Expected Cash-Flows