Century Casinos (NASDAQ:CNTY) Posts Quarterly Earnings Results

Century Casinos (NASDAQ:CNTY) issued its earnings results on Friday. The company reported ($0.58) earnings per share for the quarter, topping the consensus estimate of ($0.64) by $0.06, Zacks reports. Century Casinos had a negative return on equity of 364.04% and a negative net margin of 10.72%.The business had revenue of $137.24 million during the quarter, compared to analysts’ expectations of $138.40 million.

Here are the key takeaways from Century Casinos’ conference call:

• Record Q1 — net operating revenue rose 5% year-over-year (the highest Q1 in company history) and Adjusted EBITDAR increased 24%, with every U.S. and Canadian property posting revenue and EBITDAR growth.
• Nugget outperformance — EBITDA nearly doubled (+93%), driven by a 31% increase in hotel cash revenue, stronger F&B and sold-out concerts that are boosting hotel and casino cross?sell.
• Margin and operational gains — digital marketing shifts, targeted promotions, reduced freeplay and cross-property purchasing initiatives improved flow?through, with some properties reaching margins in the high 30s to >40%.
• Balance sheet priorities — cash of $60M, total debt $337M, net debt/EBITDA 6.9x and no debt maturities until 2029; management has paused buybacks and is prioritizing deleveraging using operating cash flow and proceeds from asset sales.
• Poland is a mixed picture — revenue edged up 2.3% but EBITDA fell 8%; a second Wroclaw location opened in February and the company is pursuing a sale of the Polish subsidiary to reallocate capital.

Century Casinos Stock Up 2.0%

Shares of NASDAQ CNTY traded up $0.03 during mid-day trading on Friday, reaching $1.50. 160,355 shares of the company were exchanged, compared to its average volume of 38,976. The company has a quick ratio of 1.26, a current ratio of 1.30 and a debt-to-equity ratio of 83.68. The stock has a market cap of $42.30 million, a price-to-earnings ratio of -0.74 and a beta of 1.69. Century Casinos has a 1 year low of $1.23 and a 1 year high of $2.85. The firm has a 50-day moving average of $1.46 and a 200 day moving average of $1.54.

Institutional Investors Weigh In On Century Casinos

A number of hedge funds have recently made changes to their positions in the stock. Veradace Capital Management LLC purchased a new stake in shares of Century Casinos during the 4th quarter worth $2,076,000. XTX Topco Ltd lifted its stake in shares of Century Casinos by 149.9% during the 4th quarter. XTX Topco Ltd now owns 39,859 shares of the company’s stock worth $53,000 after purchasing an additional 23,909 shares during the last quarter. Renaissance Technologies LLC raised its stake in Century Casinos by 58.5% in the fourth quarter. Renaissance Technologies LLC now owns 287,849 shares of the company’s stock valued at $383,000 after buying an additional 106,200 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Century Casinos in the third quarter valued at about $26,000. Finally, NewEdge Advisors LLC purchased a new stake in Century Casinos in the third quarter valued at about $117,000. 66.36% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on CNTY shares. Weiss Ratings upgraded Century Casinos from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, April 24th. Stifel Nicolaus set a $3.00 price objective on Century Casinos in a research note on Friday, March 13th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $3.00.

About Century Casinos

Century Casinos, Inc is an international gaming and entertainment company that owns and operates casino properties across North America and Europe. The company offers a full range of gaming services, including slot machines, table games, poker rooms and sports wagering, complemented by hotel accommodations, food and beverage outlets, live entertainment and meeting facilities.

In the United States, Century Casinos’ portfolio includes Century Casino & Hotel Cripple Creek and Century Casino & Hotel Central City in Colorado, as well as Century Casino Cape Girardeau in Missouri.