Core Insights - Century Casinos, Inc. announced that its Rocky Gap Casino, Resort & Golf received multiple first-place awards in Casino Player Magazine's Best of Gaming Awards 2025: Maryland, highlighting the resort's commitment to exceptional service and guest experiences [1]. Company Overview - Century Casinos, Inc. operates various casino entertainment segments across the United States, including locations in West Virginia, Missouri, Colorado, and Nevada, as well as in Canada and Poland [2]. - The company's common stock trades on The Nasdaq Capital Market under the symbol CNTY [3]. Awards and Recognition - Rocky Gap Casino received awards for Best Hotel Staff, Best Rooms, Best Golf Course, Favorite Casino Resort to Vacation At, Best Hosts, Best Promotions, Best Dealers, Best Non-Smoking Casino, Casino Where You Feel Luckiest, Best Carnival Games, and Best Roulette [6].

Core Insights - Century Therapeutics reported significant progress in its pipeline, focusing on cell therapy candidates for autoimmune diseases and cancer, with ongoing clinical trials and preclinical studies [2][5][6] Financial Results - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $158.5 million, down from $220.1 million at the end of 2024, with an estimated cash runway extending into the fourth quarter of 2027 [13][12] - Research and Development (R&D) expenses for Q2 2025 were $26.9 million, slightly lower than $27.2 million in Q2 2024, while General and Administrative (G&A) expenses decreased to $7.8 million from $8.3 million in the same period [13][20] - The net loss for Q2 2025 was $32.5 million, compared to a net loss of $31.2 million in Q2 2024 [13][20] Pipeline Development - CNTY-101 is currently in a Phase 1 trial (CALiPSO-1) for B-cell-mediated autoimmune diseases, with patient dosing ongoing and clinical data expected by year-end 2025 [5][6] - CNTY-308 is advancing through IND-enabling studies as a potential treatment for B-cell-mediated diseases, with plans to initiate clinical studies in 2026 [4][7] Corporate Updates - Brent Pfeiffenberger has been appointed as Board Chair, succeeding Joe Jimenez, who will continue as a special advisor [2][12] - The company has made strategic decisions to focus on high-potential programs, including a workforce reduction to align resources with its pipeline development activities [12][5]

Financial Data and Key Metrics Changes - The company reported record revenues of $150.8 million for Q2 2025, a 10% increase year-over-year, and a 50% sequential increase in adjusted EBITDAR to $30.3 million [5][30] - The net debt to EBITDA ratio improved from 6.9 times to 6.2 times, and lease adjusted ratio decreased from 7.6 to 7.3 [30][31] Business Line Data and Key Metrics Changes - The Caruthersville Casino and Hotel in Missouri saw a 24% revenue growth and a 30% increase in EBITDAR, with a 43% margin [10][12] - The new hotel at Casiarado contributed to a doubling of cash revenue compared to the same quarter last year, with food and beverage revenue increasing by 31% [14] - The Mountaineer Casino Resort in West Virginia reported a 12% increase in EBITDA, driven by a 39% increase in iGaming revenue [22] Market Data and Key Metrics Changes - In Poland, total revenue grew 23% year-over-year, resulting in a 306% increase in EBITDAR from $0.5 million in 2024 to $1.8 million in 2025 [28] - The Canadian segment saw a 6% increase in slot coin-in and a 2.8% growth in EBITDAR [26] Company Strategy and Development Direction - The company announced a partnership with BetMGM to operate an online sports betting application in Missouri, expected to contribute significantly to financials in 2026 [6][7] - A strategic review of operations and capital structure is underway, exploring potential asset sales and strategic partnerships to enhance shareholder value [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer sentiment and spending power, particularly benefiting from recent legislative changes [33] - The company anticipates continued growth in the second half of the year, supported by improved trends in various sectors [58] Other Important Information - The company is committed to divesting its Polish operations and expects to sign a letter of intent with an Eastern European gaming group soon [8][29] - The company has no debt maturities until 2029 and plans to spend no more than $20 million on growth and maintenance projects this year [30][31] Q&A Session Summary Question: What is driving the improvement in margins at Rocky Gap despite weather disruptions? - Management noted a comeback of lower-end customers and a more granular marketing strategy leading to increased slot and hotel revenue [40][42] Question: Why was the stock repurchase amount lower than expected? - The company faced volume and timing limits under its 10b5-1 plan, affecting the total repurchase amount [43][47] Question: What is the outlook for Poland's growth? - The growth is attributed to the timing of licenses and openings, with expectations to return to previous revenue levels by Q4 [50][56] Question: Are there benefits from consumers staying closer to home instead of traveling to Las Vegas? - Management indicated a larger reach due to improved capacity and product offerings, potentially attracting customers who prefer local options [71][72] Question: What is the long-term EBITDAR target? - The company maintains that a target of $150 million EBITDAR is reasonable, contingent on the return of retail and lower-end customers [79][80]

Financial Performance & Strategic Review - Century Casinos' Q2 2025 net operating revenue reached $15081 million[122] - Adjusted EBITDAR for Q2 2025 was $3030 million[122] - The company initiated a strategic review process to explore options for enhancing shareholder value, including potential asset sales, partnerships, or a company sale[108] Regional Market Overview - US regional Gross Gaming Revenue (GGR) has shown stable growth since 2001[20] - Missouri's gaming revenue was approximately $19 billion in 2024, with over 9% growth since 2019[63] - West Virginia's gaming market experienced 43% growth from 2019 to 2024[39] Capital Expenditures & Debt - Total growth capital expenditures are estimated at $385 million, excluding VICI funding[101] - Regular maintenance capital expenditures are projected at $68 million spent and $81 million remaining for 2025[101] - The company's total principal debt as of June 30, 2025, was $3381 million[99] - Net debt leverage was 62x, with expectations to trend towards 47-60x by the end of 2025[96]

[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Century Casinos reported a 3% increase in net operating revenue and a 10% rise in Adjusted EBITDAR for Q2 2025, while the Board initiated a strategic review to enhance shareholder value [Key Financial Results](index=1&type=section&id=Key%20Financial%20Results) Q2 2025 saw net operating revenue increase 3% to $150.8 million, earnings from operations grow 16%, and Adjusted EBITDAR rise 10% Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Operating Revenue (in millions) | $150.8 | +3% | | Earnings from Operations (in millions) | $16.6 | +16% | | Net Loss Attributable to Shareholders (in millions) | ($12.3) | 70% decrease in loss | | Basic Net Loss per Share (USD) | ($0.40) | 71% decrease in loss | | Adjusted EBITDAR (in millions) | $30.3 | +10% | [Strategic & Operational Updates](index=1&type=section&id=Strategic%20%26%20Operational%20Updates) The company launched a strategic review to maximize shareholder value, formed a BetMGM partnership for Missouri online sports betting, and saw strong results from the new Caruthersville property - The Board of Directors has initiated a strategic review to explore alternatives such as optimizing the capital structure, potential mergers, strategic partnerships, asset divestments, or the sale of the Company to enhance shareholder value[2](index=2&type=chunk)[7](index=7&type=chunk) - A partnership was formed with BetMGM for online and mobile sports betting in Missouri, which includes a revenue sharing agreement with a guaranteed minimum for the company[4](index=4&type=chunk) - The new Caruthersville, Missouri casino and hotel, opened in November 2024, has seen net operating revenue and Adjusted EBITDAR increase by **26%** and **31%**, respectively[5](index=5&type=chunk) - In Poland, the company was awarded a new casino license in Wroclaw (expected to open Q4 2025) but closed a casino in Warsaw after failing to receive a new license for that location[6](index=6&type=chunk) [Financial Results Analysis](index=2&type=section&id=Financial%20Results%20Analysis) For Q2 2025, consolidated net operating revenue grew 3% year-over-year, driven by Poland's 23% increase, while US revenue was flat and Canada rose 1% [Consolidated Performance](index=2&type=section&id=Consolidated%20Performance) Q2 2025 consolidated net operating revenue increased 3% to $150.8 million, earnings from operations rose 16% to $16.6 million, and net loss attributable to shareholders improved 70% Consolidated Financial Results (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | $150,818 | $146,435 | 3% | $281,261 | $282,451 | 0% | | Earnings from Operations | $16,575 | $14,261 | 16% | $23,715 | $22,547 | 5% | | Net Loss Attributable to Shareholders | ($12,309) | ($41,613) | 70% | ($32,922) | ($55,157) | 40% | | Adjusted EBITDAR** | $30,304 | $27,448 | 10% | $50,459 | $48,697 | 4% | | Basic Net Loss per Share | ($0.40) | ($1.36) | 71% | ($1.08) | ($1.81) | 40% | [Performance by Reportable Segment](index=2&type=section&id=Performance%20by%20Reportable%20Segment) Poland was the main Q2 2025 growth driver, with revenue up 23% to $24.7 million and Adjusted EBITDAR up 332% to $1.9 million, while US and Canada segments saw modest changes Q2 2025 Net Operating Revenue by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $106,104 | $106,515 | 0% | | Canada | $20,005 | $19,827 | 1% | | Poland | $24,709 | $20,093 | 23% | | **Consolidated** | **$150,818** | **$146,435** | **3%** | Q2 2025 Earnings from Operations by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $14,729 | $14,102 | 4% | | Canada | $4,533 | $4,362 | 4% | | Poland | $464 | ($181) | 356% | | **Consolidated** | **$16,575** | **$14,261** | **16%** | Q2 2025 Adjusted EBITDAR by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $25,693 | $25,037 | 3% | | Canada | $5,607 | $5,451 | 3% | | Poland | $1,942 | $450 | 332% | | **Consolidated** | **$30,304** | **$27,448** | **10%** | [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, cash was $85.5 million (down from $98.8 million), primarily due to $12.5 million in capital expenditures, with total outstanding debt at $338.1 million [Cash and Debt Position](index=3&type=section&id=Cash%20and%20Debt%20Position) The company's cash stood at $85.5 million at Q2 2025 end, with total debt at $338.1 million, mainly a term loan, and a $712.9 million long-term financing obligation Key Balance Sheet Items (in millions) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $85.5 | $98.8 | | Outstanding Debt | $338.1 | $339.6 | - The decrease in cash from year-end 2024 was primarily driven by **$12.5 million** in purchases of property and equipment[19](index=19&type=chunk) - As of June 30, 2025, the company's Consolidated First Lien Net Leverage Ratio exceeded the 5.50 to 1.00 covenant limit; however, because there were no outstanding revolving loans, this did not constitute a breach[19](index=19&type=chunk) [Financial Statements (Unaudited)](index=5&type=section&id=Financial%20Statements%20(Unaudited)) The unaudited financial statements detail a Q2 2025 net loss attributable to shareholders of $12.3 million (improved from $41.6 million loss), with total assets of $1.21 billion and a shareholders' deficit of $41.5 million [Condensed Consolidated Statements of Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) For Q2 2025, net operating revenue was $150.8 million, earnings from operations $16.6 million, resulting in a net loss of $9.6 million and a net loss attributable to shareholders of $12.3 million, or ($0.40) per share Q2 2025 Statement of Loss Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Operating Revenue | $150,818 | $146,435 | | Earnings from Operations | $16,575 | $14,261 | | Loss Before Income Taxes | ($8,323) | ($9,394) | | Net Loss | ($9,573) | ($39,013) | | Net Loss Attributable to Shareholders | ($12,309) | ($41,613) | | Basic & Diluted Loss Per Share | ($0.40) | ($1.36) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $1.208 billion (down from $1.226 billion), total liabilities increased to $1.158 billion, and shareholders' deficit grew to $41.5 million Balance Sheet Summary (in thousands) | Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Current Assets | $119,292 | $135,549 | | Property and Equipment, net | $916,120 | $922,146 | | **Total Assets** | **$1,208,451** | **$1,226,312** | | **Liabilities and Equity** | | | | Current Liabilities | $84,230 | $86,044 | | Non-current Liabilities | $1,074,022 | $1,058,264 | | Shareholders' Equity (Deficit) | ($41,493) | ($9,300) | | **Total Liabilities and Equity** | **$1,208,451** | **$1,226,312** | [Supplemental Information & Non-GAAP Reconciliations](index=6&type=section&id=Supplemental%20Information%20%26%20Non-GAAP%20Reconciliations) This section reconciles Adjusted EBITDAR, a key non-GAAP metric, showing Q2 2025 consolidated Adjusted EBITDAR of $30.3 million (up 10%) and an improved margin of 20% [Reconciliation of Adjusted EBITDAR](index=6&type=section&id=Reconciliation%20of%20Adjusted%20EBITDAR) Reconciliation tables detail adjustments from net loss to Adjusted EBITDAR, with Q2 2025 consolidated Adjusted EBITDAR at $30.3 million, and Caruthersville property's Adjusted EBITDAR increasing to $6.1 million - The reconciliation from Net Loss to Adjusted EBITDAR for Q2 2025 shows major add-backs including **Interest Expense ($25.9 million)**, **Depreciation & Amortization ($12.8 million)**, and **Income Tax Expense ($1.3 million)**[27](index=27&type=chunk) - The Caruthersville property's Adjusted EBITDAR increased to **$6.1 million** in Q2 2025, up from **$4.7 million** in Q2 2024, demonstrating strong performance since its redevelopment[37](index=37&type=chunk) [Key Performance Margins](index=8&type=section&id=Key%20Performance%20Margins) Consolidated Adjusted EBITDAR margin improved to 20% in Q2 2025 from 19%, with Poland showing significant expansion from 2% to 8%, while US and Canada margins remained stable Adjusted EBITDAR Margins by Segment | Segment | Q2 2025 Margin | Q2 2024 Margin | | :--- | :--- | :--- | | United States | 24% | 24% | | Canada | 28% | 28% | | Poland | 8% | 2% | | **Consolidated** | **20%** | **19%** | [Definition of Non-GAAP Measures](index=10&type=section&id=Definition%20of%20Non-GAAP%20Measures) Adjusted EBITDAR is defined as net earnings (loss) adjusted for interest, taxes, depreciation, amortization, non-controlling interests, and specific one-time items, used by analysts for valuation and comparability - Adjusted EBITDAR is defined as net earnings (loss) adjusted for interest, taxes, depreciation, amortization, non-controlling interests, stock-based compensation, and other specific items[42](index=42&type=chunk) - The company states that Adjusted EBITDAR is used by analysts and investors as a valuation metric because it isolates the effects of financing real estate and allows for better comparability among gaming operators with different capital and leasing structures[43](index=43&type=chunk)

Part I – FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements, encompassing balance sheets, income statements, comprehensive income statements, equity changes, and cash flow statements, along with detailed notes on business, accounting policies, and financial performance [Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=Item%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the company's unaudited condensed consolidated financial statements, encompassing balance sheets, income statements, comprehensive income statements, equity changes, and cash flow statements, along with detailed notes on business, accounting policies, and financial performance [Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section provides a comparative overview of the company's condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024 **Balance Sheet Key Data (Thousands of USD)** | Indicator | June 30, 2025 | December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Cash and Cash Equivalents | 85,541 | 98,769 | (13,228) | -13.4% | | Total Current Assets | 119,292 | 135,549 | (16,257) | -12.0% | | Property and Equipment, Net | 916,120 | 922,146 | (6,026) | -0.7% | | Goodwill | 37,288 | 36,256 | 1,032 | 2.8% | | Intangible Assets, Net | 82,140 | 84,916 | (2,776) | -3.3% | | **Total Assets** | **1,208,451** | **1,226,312** | **(17,861)** | **-1.5%** | | **Liabilities** | | | | | | Total Current Liabilities | 84,230 | 86,044 | (1,814) | -2.1% | | Long-Term Debt, Net | 321,528 | 321,930 | (402) | -0.1% | | VICI Properties, Inc. Subsidiary Long-Term Financing Obligation | 712,929 | 700,970 | 11,959 | 1.7% | | **Total Liabilities** | **1,158,252** | **1,144,308** | **13,944** | **1.2%** | | **Equity** | | | | | | Equity (Deficit) Attributable to Century Casinos, Inc. Shareholders | (41,493) | (9,300) | (32,193) | -346.2% | | Non-Controlling Interests | 91,692 | 91,304 | 388 | 0.4% | | **Total Equity** | **50,199** | **82,004** | **(31,805)** | **-38.8%** | | **Total Liabilities and Equity** | **1,208,451** | **1,226,312** | **(17,861)** | **-1.5%** | [Condensed Consolidated Statements of Loss for the Three and Six Months Ended June 30, 2025 and 2024](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section presents the company's condensed consolidated statements of loss for the three and six months ended June 30, 2025 and 2024 **Statements of Loss Key Data (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | 150,818 | 146,435 | 4,383 | 3.0% | 281,261 | 282,451 | (1,190) | -0.4% | | Total Operating Costs and Expenses | (134,243) | (132,174) | 2,069 | 1.6% | (257,546) | (259,904) | (2,358) | -0.9% | | Operating Income | 16,575 | 14,261 | 2,314 | 16.2% | 23,715 | 22,547 | 1,168 | 5.2% | | Non-Operating (Expense) Income, Net | (24,898) | (23,655) | (1,243) | -5.3% | (50,435) | (47,621) | (2,814) | -5.9% | | Net Loss | (9,573) | (39,013) | 29,440 | 75.5% | (28,452) | (50,707) | 22,255 | 43.9% | | Net Loss Attributable to Century Casinos, Inc. Shareholders | (12,309) | (41,613) | 29,304 | 70.4% | (32,922) | (55,157) | 22,235 | 40.3% | | Basic Loss Per Share | (0.40) | (1.36) | 0.96 | 70.6% | (1.08) | (1.81) | 0.73 | 40.3% | [Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section details the company's condensed consolidated statements of comprehensive loss for the three and six months ended June 30, 2025 and 2024 **Comprehensive Loss Key Data (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Loss | (9,573) | (39,013) | 29,440 | 75.5% | (28,452) | (50,707) | 22,255 | 43.9% | | Foreign Currency Translation Adjustment | 705 | (244) | 949 | -388.9% | 1,792 | (2,349) | 4,141 | -176.3% | | Comprehensive Loss Attributable to Century Casinos, Inc. Shareholders | (11,814) | (41,815) | 30,001 | 71.7% | (31,721) | (57,424) | 25,703 | 44.8% | | Comprehensive Loss | (8,868) | (39,257) | 30,389 | 77.4% | (26,660) | (53,056) | 26,396 | 49.8% | [Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2025 and 2024](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section outlines the company's condensed consolidated statements of equity for the three and six months ended June 30, 2025 and 2024 **Equity Changes Key Data (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity (Deficit) Attributable to Century Casinos, Inc. Shareholders, End of Period | (41,493) | 64,579 | (106,072) | -164.2% | (41,493) | 64,579 | (106,072) | -164.2% | | Non-Controlling Interests, End of Period | 91,692 | 92,434 | (742) | -0.8% | 91,692 | 92,434 | (742) | -0.8% | | Total Equity, End of Period | 50,199 | 157,013 | (106,814) | -68.0% | 50,199 | 157,013 | (106,814) | -68.0% | | Common Stock Repurchased and Retired (Shares) | (428,734) | — | (428,734) | N/A | (428,734) | — | (428,734) | N/A | [Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section presents the company's condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 **Cash Flow Key Data (Thousands of USD)** | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 6,658 | (8,476) | 15,134 | -178.5% | | Net Cash Used in Investing Activities | (12,982) | (36,052) | 23,070 | 64.0% | | Net Cash Used in Financing Activities | (7,867) | (381) | (7,486) | -1964.8% | | Cash, Cash Equivalents, and Restricted Cash, End of Period | 85,807 | 123,444 | (37,637) | -30.5% | | Interest Paid | 47,344 | 41,580 | 5,764 | 13.9% | | Income Taxes Paid | 1,539 | 14,724 | (13,185) | -89.6% | | Purchase of Property and Equipment (Non-Cash) | 3,059 | 4,550 | (1,491) | -32.8% | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, offering further context and explanations for reported figures [1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION](index=8&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) The company operates casino entertainment in North America and Poland through subsidiaries, launching online sports betting in Missouri with BetMGM and opening new casinos and hotels, with financial statements prepared under US GAAP using management estimates and average exchange rates for foreign currency transactions - The company operates casino entertainment businesses in North America (Colorado, West Virginia, Missouri, Nevada, Maryland, Alberta, Canada) and Poland[16](index=16&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - The company partnered with BetMGM to launch an online and mobile sports betting application in Missouri, anticipated in **Q4 2025**[21](index=21&type=chunk) - On November 1, 2024, the company opened a new land-based casino and a 38-room hotel in Caruthersville, Missouri, costing approximately **$51.9 million**, financed by VICI PropCo[22](index=22&type=chunk) - On April 4, 2024, the company opened the 69-room Riverview Hotel in Cape Girardeau, Missouri, costing approximately **$30.5 million**, funded by company cash[23](index=23&type=chunk) **Average Foreign Currency Exchange Rate Changes to USD** | Currency | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Canadian Dollar (CAD) | 1.3843 | 1.3683 | -1.2% | 1.4096 | 1.3579 | -3.8% | | Euro (EUR) | 0.8816 | 0.9290 | 5.1% | 0.9166 | 0.9250 | 0.9% | | Polish Zloty (PLN) | 3.7569 | 3.9965 | 6.0% | 3.8787 | 3.9932 | 2.9% | [2. SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=2.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines upcoming accounting standard updates, including ASU 2023-06, ASU 2023-09, and ASU 2024-03/2025-01, which are not expected to materially impact financial statements, and details the accounting treatment for common stock repurchases - The company is reviewing ASU 2023-06 (disclosure improvements), ASU 2023-09 (income tax disclosure improvements), and ASU 2024-03/2025-01 (expense disaggregation disclosures), with no material impact expected on financial statements[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - The company records retired common stock at cost, allocating the excess repurchase price over par value proportionally to retained earnings and additional paid-in capital[34](index=34&type=chunk) [3. GOODWILL AND INTANGIBLE ASSETS](index=11&type=section&id=3.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) The company annually tests goodwill and indefinite-lived intangible assets for impairment, with goodwill balances increasing due to foreign currency translation, while finite-lived intangibles are amortized over their estimated useful lives, noting Polish casino licenses are finite and US/Canadian licenses are indefinite - The company performs goodwill impairment tests annually on **October 1**, or more frequently if conditions indicate, using income, market, and fair value approaches[36](index=36&type=chunk) **Changes in Goodwill Carrying Value (Thousands of USD)** | Reporting Segment | Net Carrying Value as of January 1, 2025 | Currency Translation | Net Carrying Value as of June 30, 2025 | | :--- | :--- | :--- | :--- | | United States | 26,473 | — | 26,473 | | Canada | 3,557 | 180 | 3,737 | | Poland | 6,226 | 852 | 7,078 | | **Total** | **36,256** | **1,032** | **37,288** | **Intangible Assets, Net (Thousands of USD)** | Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Finite-Lived Intangible Assets, Net | 50,106 | 53,626 | | Indefinite-Lived Intangible Assets | 32,034 | 31,290 | | **Total Intangible Assets, Net** | **82,140** | **84,916** | - Polish casino licenses are finite (original term six years) and non-renewable; the company secured a second license in Wroclaw in **March 2025** but not for the Warsaw Hilton casino[43](index=43&type=chunk) - Casino licenses in the US (Missouri, West Virginia, Nevada) and Canada (Alberta) are classified as indefinite-lived intangible assets[44](index=44&type=chunk) [4. LONG-TERM DEBT](index=14&type=section&id=4.%20LONG-TERM%20DEBT) As of June 30, 2025, total long-term debt was **$328 million**, primarily comprising Goldman Sachs Term Loan, CPL Credit Facility, and UniCredit Term Loan, with the Goldman Sachs loan at **$335.1 million** and a **10.49%** weighted average interest rate, while CPL failed to comply with covenants and UniCredit matures by **December 31, 2025** **Long-Term Debt Composition (Thousands of USD)** | Debt Type | June 30, 2025 | Weighted Average Interest Rate (June 30, 2025) | December 31, 2024 | Weighted Average Interest Rate (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Goldman Sachs Term Loan | 335,134 | 10.49% | 336,884 | 11.45% | | CPL Credit Facility | 2,150 | 7.39% | 1,339 | 7.30% | | UniCredit Term Loan | 782 | 3.13% | 1,387 | 3.02% | | **Total Principal** | **338,066** | **10.46%** | **339,610** | **11.39%** | | Deferred Financing Costs | (10,106) | | (11,454) | | | **Total Long-Term Debt** | **327,960** | | **328,156** | | | Less: Current Portion | (6,432) | | (6,226) | | | **Long-Term Portion** | **321,528** | | **321,930** | | - The Goldman Sachs Term Loan balance is **$335.1 million**, with a weighted average interest rate of **10.49%** in H1 2025, down from **11.55%** in H1 2024, maturing on **April 1, 2029**[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) - CPL's short-term credit facility was extended to **June 25, 2026**, but as of **June 30, 2025**, CPL did not comply with all financial covenants, allowing lenders to increase the interest rate by **0.50%**[56](index=56&type=chunk) - The UniCredit Term Loan matures on **December 31, 2025**, with an outstanding balance of **€0.7 million** (approximately **$0.8 million**) as of **June 30, 2025**[59](index=59&type=chunk) [5. LONG-TERM FINANCING OBLIGATION](index=16&type=section&id=5.%20LONG-TERM%20FINANCING%20OBLIGATION) The company's lease agreement with VICI PropCo is a failed sale-leaseback financing obligation for properties in West Virginia, Missouri, Maryland, and Canada, with the master lease amended to increase annual rent by **$4.2 million** for the Caruthersville project, deferrable, totaling **$712.9 million** in long-term financing obligations as of **June 30, 2025** - The company's lease agreement with VICI PropCo is classified as a failed sale-leaseback financing obligation, covering properties in West Virginia, Missouri, Maryland, and Canada[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The master lease was amended, increasing initial annualized rent by approximately **$4.2 million** upon Caruthersville project completion, deferrable for **12 months** and payable over **six months** starting **December 2025**[63](index=63&type=chunk)[70](index=70&type=chunk) - Total long-term financing obligations amounted to **$712.9 million** as of **June 30, 2025**[70](index=70&type=chunk) **Master Lease Agreement Payments and Interest Expense (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Payments Under Master Lease Agreement | 13,671 | 14,635 | (964) | -6.6% | 27,266 | 23,706 | 3,560 | 15.0% | | Total Payments Including CPI Increase | 14,404 | 15,195 | (791) | -5.2% | 28,731 | 24,639 | 4,092 | 16.6% | | Interest Expense | 16,494 | 15,175 | 1,319 | 8.7% | 32,896 | 30,374 | 2,522 | 8.3% | [6. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS](index=18&type=section&id=6.%20COMMITMENTS%2C%20CONTINGENCIES%20AND%20OTHER%20MATTERS) The company faces various legal proceedings not expected to materially impact its financial condition, while incurring termination costs, including employee severance for unobtained Polish casino licenses in Krakow and Warsaw Hilton, with Warsaw Hilton severance anticipated by **end of 2025** - The company does not expect current legal proceedings to materially impact its financial condition, cash flows, or operating results[72](index=72&type=chunk) - Termination costs, including employee severance, arose from failing to secure casino licenses in Krakow and Warsaw Hilton, Poland, with Warsaw Hilton severance expected by **end of 2025**[73](index=73&type=chunk)[74](index=74&type=chunk) **Termination Cost Liability Rollforward (Thousands of USD)** | Indicator | Amount | | :--- | :--- | | Balance as of January 1, 2025 | 766 | | Termination Costs | 357 | | Payments | (741) | | Adjustment to Estimate | (152) | | Currency Translation | 65 | | **Balance as of June 30, 2025** | **295** | [7. INCOME TAXES](index=18&type=section&id=7.%20INCOME%20TAXES) For the six months ended June 30, 2025, the company reported **$1.7 million** in income tax expense on a **$26.7 million** pre-tax loss, resulting in a **-6.5%** effective tax rate, a significant improvement from **-102.2%** in 2024, influenced by non-deductible Polish expenses, exchange gains, and Smooth Bourbon non-controlling interest income, with full valuation allowances maintained on certain deferred tax assets in Canada, Austria, and the US **Income Tax Expense and Effective Tax Rate** | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Income Tax Expense | $1,732 thousand | $25,633 thousand | | Loss Before Income Taxes | ($26,720) thousand | ($25,074) thousand | | Effective Income Tax Rate | (6.5%) | (102.2%) | | US Federal Statutory Income Tax Rate | 21% | 21% | - The variance between the effective tax rate and the **21%** US federal statutory rate is primarily due to non-deductible Polish business expenses, exchange gains, and Smooth Bourbon non-controlling interest income[78](index=78&type=chunk) - The company maintains full valuation allowances on certain deferred tax assets in Canada, Austria, and the US[79](index=79&type=chunk) [8. EQUITY](index=19&type=section&id=8.%20EQUITY) For the three and six months ended June 30, 2025, basic and diluted loss per share were **$0.40** and **$1.08**, respectively, with the company announcing a **$3 million** common stock repurchase plan on **May 14, 2025**, under which **428,734** shares were repurchased and retired for **$0.9 million** by **June 30, 2025**, with the plan expiring on **July 31, 2025** **Loss Per Share and Weighted Average Shares (Thousands of Shares, USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (0.40) | (1.36) | (1.08) | (1.81) | | Diluted Loss Per Share | (0.40) | (1.36) | (1.08) | (1.81) | | Weighted Average Common Shares - Basic | 30,565 | 30,683 | 30,624 | 30,551 | | Weighted Average Common Shares - Diluted | 30,565 | 30,683 | 30,624 | 30,551 | | Anti-Dilutive Stock Options | 437 | 121 | 256 | 336 | - On **May 14, 2025**, the company announced a 10b5-1 trading plan to repurchase up to **$3 million** of common stock; as of **June 30, 2025**, **428,734** shares were repurchased and retired for **$0.9 million**, with **$2.1 million** remaining under the plan which expired on **July 31, 2025**[81](index=81&type=chunk)[82](index=82&type=chunk) [9. FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS REPORTING](index=20&type=section&id=9.%20FAIR%20VALUE%20MEASUREMENTS%20AND%20DERIVATIVE%20INSTRUMENTS%20REPORTING) The company adheres to fair value measurement accounting, categorizing financial instruments into three levels, with Goldman Sachs, UniCredit, and CPL debt, along with other short-term assets and liabilities, having book values approximating fair values, and no transfers between levels occurred during the reporting period - The company categorizes fair value measurements into three levels: Level 1 (quoted prices in active markets), Level 2 (quoted prices for similar assets/liabilities or observable inputs), and Level 3 (unobservable inputs)[83](index=83&type=chunk)[89](index=89&type=chunk) - The fair values of the Goldman Sachs Credit Agreement and UniCredit Term Loan are designated as Level 2 measurements, while CPL short-term credit facility, finance lease obligations, cash, receivables, and payables approximate their carrying values[85](index=85&type=chunk)[86](index=86&type=chunk) - As of **June 30, 2025**, the company held no cash equivalents, and no transfers between fair value levels occurred during the reporting period[83](index=83&type=chunk)[86](index=86&type=chunk) [10. REVENUE RECOGNITION](index=20&type=section&id=10.%20REVENUE%20RECOGNITION) The company generates revenue primarily from gaming, racing, sports betting, iGaming, hotel, food and beverage, and other services, with total revenue of **$151.8 million** for the three months ended June 30, 2025, predominantly from gaming, and manages receivables and contract liabilities related to customer contracts **Total Revenue Composition (Thousands of USD)** | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 150,818 | 146,435 | 281,261 | 282,451 | | Cost Recovery Revenue | 991 | 1,066 | 991 | 1,066 | | **Total Revenue** | **151,809** | **147,501** | **282,252** | **283,517** | **Net Operating Revenue by Segment (Three Months Ended June 30, 2025, Thousands of USD)** | Revenue Type | United States | Canada | Poland | Corporate and Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Gaming | 74,511 | 12,415 | 24,144 | — | 111,070 | | Racing, Sports Betting, and iGaming | 2,484 | 2,587 | — | — | 5,071 | | Hotel | 13,885 | 176 | — | — | 14,061 | | Food and Beverage | 10,047 | 3,215 | 243 | — | 13,505 | | Other | 5,177 | 1,612 | 322 | — | 7,111 | | **Net Operating Revenue** | **106,104** | **20,005** | **24,709** | **—** | **150,818** | - Most customer contract payments are received in advance and revenue is recognized on the day of sale, with contract liabilities primarily comprising deferred gaming revenue from US casino player points[91](index=91&type=chunk)[92](index=92&type=chunk) [11. LEASES](index=22&type=section&id=11.%20LEASES) The company treats lease and non-lease components as a single lease component, recognizing right-of-use assets and lease liabilities based on the present value of payments over the lease term, with net operating lease right-of-use assets at **$34.854 million** and total operating lease liabilities at **$38.409 million** as of **June 30, 2025**, with a weighted average remaining lease term of **11.4 years** and a weighted average discount rate of **8.4%** - The company accounts for lease and non-lease components as a single lease component, recognizing right-of-use assets and lease liabilities based on the present value of payments over the lease term[97](index=97&type=chunk) **Lease Expense Composition (Thousands of USD)** | Expense Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Lease Expense | 1,871 | 1,595 | 3,730 | 2,934 | | Total Finance Lease Expense | 88 | 54 | 156 | 107 | | Short-Term Lease Expense | 33 | 32 | 65 | 63 | | Variable Lease Expense | 363 | 263 | 725 | 537 | **Lease Supplemental Balance Sheet Information (Thousands of USD)** | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating Lease Right-of-Use Assets, Net | 34,854 | 30,015 | | Total Operating Lease Liabilities | 38,409 | 33,182 | | Total Finance Lease Liabilities | 1,024 | 754 | | Weighted Average Remaining Operating Lease Term | 11.4 years | 12.5 years | | Weighted Average Operating Lease Discount Rate | 8.4% | 8.6% | [12. SEGMENT INFORMATION](index=24&type=section&id=12.%20SEGMENT%20INFORMATION) The company segments its operations geographically into US, Canada, and Poland, plus Corporate and Other, using Adjusted EBITDAR as the primary profit measure for performance and resource allocation, with US net operating revenue slightly down, Canada slightly up, and Poland significantly growing by **23.0%** for the three months ended June 30, 2025 - The company's operations are categorized into three reportable segments: US, Canada, and Poland, plus Corporate and Other, with the US segment further divided into Eastern, Midwestern, and Western operating segments[100](index=100&type=chunk)[101](index=101&type=chunk) - Adjusted EBITDAR, a non-GAAP measure, is utilized to assess segment performance, allocate resources, and inform investment decisions[102](index=102&type=chunk)[103](index=103&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) **Net Operating Revenue by Segment (Thousands of USD)** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | United States | 106,104 | 106,515 | (411) | -0.4% | 199,401 | 202,543 | (3,142) | -1.6% | | Canada | 20,005 | 19,827 | 178 | 0.9% | 36,521 | 38,153 | (1,632) | -4.3% | | Poland | 24,709 | 20,093 | 4,616 | 23.0% | 45,339 | 41,742 | 3,597 | 8.6% | | Corporate and Other | — | — | — | — | — | 13 | (13) | -100.0% | | **Total** | **150,818** | **146,435** | **4,383** | **3.0%** | **281,261** | **282,451** | **(1,190)** | **-0.4%** | **Adjusted EBITDAR by Segment (Thousands of USD)** | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | United States | 25,693 | 25,037 | 656 | 2.6% | 44,092 | 44,175 | (83) | -0.2% | | Canada | 5,607 | 5,451 | 156 | 2.9% | 9,967 | 10,599 | (632) | -6.0% | | Poland | 1,942 | 450 | 1,492 | 331.6% | 2,488 | 1,208 | 1,280 | 106.0% | | Corporate and Other | (2,938) | (3,490) | 552 | 15.8% | (6,088) | (7,285) | 1,197 | 16.4% | | **Total** | **30,304** | **27,448** | **2,856** | **10.4%** | **50,459** | **48,697** | **1,762** | **3.6%** | [13. TRANSACTIONS WITH RELATED PARTIES](index=28&type=section&id=13.%20TRANSACTIONS%20WITH%20RELATED%20PARTIES) The company has general contractor and consulting service agreements with Marnell Gaming, LLC, a **50%** owner of Smooth Bourbon, paying **$3.8 million** for the six months ended June 30, 2025, primarily for Nugget lease rent and Smooth Bourbon operating costs - The company has general contractor and consulting service agreements with Marnell Gaming, LLC, a **50%** owner of Smooth Bourbon[113](index=113&type=chunk) **Payments to Marnell (Thousands of USD)** | Period | Amount | | :--- | :--- | | Three Months Ended June 30, 2025 | 1,900 | | Three Months Ended June 30, 2024 | 1,900 | | Six Months Ended June 30, 2025 | 3,800 | | Six Months Ended June 30, 2024 | 3,800 | [14. SUBSEQUENT EVENTS](index=28&type=section&id=14.%20SUBSEQUENT%20EVENTS) The company is currently assessing the financial impact of 'An Act Big and Beautiful' (OBBBA), enacted on **July 4, 2025** - The company is evaluating the impact of 'An Act Big and Beautiful' (OBBBA), enacted on **July 4, 2025**[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed analysis of the company's financial condition and operating results, covering forward-looking statements, business environment, macroeconomic uncertainties, project updates, strategic review, and foreign currency impacts, noting a narrowed net loss and increased Adjusted EBITDAR, alongside discussions on liquidity, capital resources, and critical accounting estimates [Forward-Looking Statements, Business Environment and Risk Factors](index=29&type=section&id=Forward-Looking%20Statements%2C%20Business%20Environment%20and%20Risk%20Factors) This section addresses forward-looking statements, the business environment, and various risk factors impacting the company's future performance - This report contains forward-looking statements regarding industry trends, project investments, cost savings, casino licenses, and future expectations, subject to macroeconomic conditions, foreign exchange rates, political instability, and inflation[117](index=117&type=chunk)[128](index=128&type=chunk) [EXECUTIVE OVERVIEW](index=29&type=section&id=EXECUTIVE%20OVERVIEW) This executive overview summarizes the company's business, strategic initiatives, and the impact of foreign currency fluctuations on its operations - Since its inception in **1992**, the company has primarily developed and operated gaming establishments with associated lodging, food and beverage, and entertainment facilities, deriving revenue mainly from the net win of gaming machines and table games[120](index=120&type=chunk) - The company initiated a comprehensive strategic review to enhance shareholder value and support long-term growth, potentially involving asset value realization, capital structure optimization, mergers, strategic partnerships, or a company sale[134](index=134&type=chunk) - Revenues and expenses for Canadian and Polish operations are primarily denominated in Canadian Dollars and Polish Zloty, with exchange rate fluctuations impacting USD-denominated earnings[135](index=135&type=chunk) [DISCUSSION OF RESULTS](index=32&type=section&id=DISCUSSION%20OF%20RESULTS) This section discusses the consolidated financial performance, highlighting key metrics such as net operating revenue, net loss, and Adjusted EBITDAR, and factors influencing comparability **Consolidated Performance Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | 150,818 | 146,435 | 4,383 | 3.0% | 281,261 | 282,451 | (1,190) | -0.4% | | Operating Income | 16,575 | 14,261 | 2,314 | 16.2% | 23,715 | 22,547 | 1,168 | 5.2% | | Net Loss Attributable to Century Casinos, Inc. Shareholders | (12,309) | (41,613) | 29,304 | 70.4% | (32,922) | (55,157) | 22,235 | 40.3% | | Adjusted EBITDAR | 30,304 | 27,448 | 2,856 | 10.4% | 50,459 | 48,697 | 1,762 | 3.6% | | Basic Loss Per Share | (0.40) | (1.36) | 0.96 | 70.6% | (1.08) | (1.81) | 0.73 | 40.3% | - A valuation allowance on US deferred tax assets in H1 2024 resulted in **$23.8 million** in tax expense, significantly impacting comparability[137](index=137&type=chunk) - The company terminated two Colorado sports betting agreements in **2024**, reducing segment revenue but receiving a **$1.1 million** termination fee, including **$0.7 million** in liquidated damages[138](index=138&type=chunk) - Adjusted EBITDAR is defined as net (loss) earnings before interest, taxes, depreciation, amortization, non-controlling interests, pre-opening expenses, termination fees, acquisition costs, non-cash share-based compensation, asset impairments, gain/loss on disposal of property and equipment, discontinued operations, foreign currency transaction gains/losses, cost recovery income, and other one-time transactions[144](index=144&type=chunk) **Net Debt (Thousands of USD)** | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Long-Term Debt (including current portion) | 327,960 | 328,847 | | Deferred Financing Costs | 10,106 | 12,801 | | **Total Principal** | **338,066** | **341,648** | | Less: Cash and Cash Equivalents | 85,541 | 123,200 | | **Net Debt** | **252,525** | **218,448** | [REPORTABLE SEGMENTS](index=36&type=section&id=REPORTABLE%20SEGMENTS) This section provides a detailed performance analysis of the company's reportable segments: US, Canada, and Poland, highlighting revenue and Adjusted EBITDAR trends **US Segment Performance Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | 106,104 | 106,515 | -0.4% | 199,401 | 202,543 | -1.6% | | Operating Income | 14,729 | 14,102 | 4.4% | 22,076 | 22,561 | -2.1% | | Adjusted EBITDAR | 25,693 | 25,037 | 2.6% | 44,092 | 44,175 | -0.2% | | Net Loss Attributable to Century Casinos, Inc. Shareholders | (487) | (27,593) | 98.2% | (8,030) | (29,137) | 72.4% | - Midwestern US net operating revenue increased by approximately **$3 million**, driven by gaming, hotel, and food and beverage revenue growth from the new Caruthersville casino and two new hotels, partially offset by declines in Colorado due to sports betting agreement termination and lower gaming revenue[172](index=172&type=chunk)[176](index=176&type=chunk) - The Alberta Gaming, Liquor & Cannabis (AGLC) temporarily increased the casino retention rate on slot machine net win from **15%** to **17%**, extended until **March 31, 2026**[178](index=178&type=chunk) **Canada Segment Performance Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | 20,005 | 19,827 | 0.9% | 36,521 | 38,153 | -4.3% | | Operating Income | 4,533 | 4,362 | 3.9% | 7,894 | 8,398 | -6.0% | | Adjusted EBITDAR | 5,607 | 5,451 | 2.9% | 9,967 | 10,599 | -6.0% | | Net Income Attributable to Century Casinos, Inc. Shareholders | 599 | 1,009 | -40.6% | 533 | 2,146 | -75.2% | - Poland segment net operating revenue significantly increased, primarily due to the Wroclaw casino's reopening in **2024**, though the Warsaw Hilton casino closed in **June 2025** after failing to secure a new license[187](index=187&type=chunk)[195](index=195&type=chunk)[197](index=197&type=chunk) **Poland Segment Performance Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | 24,709 | 20,093 | 23.0% | 45,339 | 41,742 | 8.6% | | Operating (Loss) Income | 464 | (181) | 356.4% | 355 | (202) | 275.7% | | Adjusted EBITDAR | 1,942 | 450 | 331.6% | 2,488 | 1,208 | 106.0% | | Net Income (Loss) Attributable to Century Casinos, Inc. Shareholders | 245 | (40) | 712.5% | 81 | (35) | 331.4% | **Corporate and Other Segment Performance Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Operating Revenue | — | — | — | — | 13 | -100.0% | | Operating Loss | (3,151) | (4,022) | 21.7% | (6,610) | (8,210) | 19.5% | | Adjusted EBITDAR | (2,938) | (3,490) | 15.8% | (6,088) | (7,285) | 16.4% | | Net Loss Attributable to Century Casinos, Inc. Shareholders | (12,666) | (14,989) | 15.5% | (25,506) | (28,131) | 9.3% | - Total operating costs and expenses, including general and administrative expenses, for the Corporate and Other segment decreased due to lower share-based compensation, legal fees, and insurance costs[200](index=200&type=chunk) [Non-Operating (Expense) Income](index=42&type=section&id=Non-Operating%20(Expense)%20Income) This section analyzes non-operating income and expenses, including interest income, interest expense, foreign currency transaction gains/losses, and cost recovery income **Non-Operating (Expense) Income Overview (Thousands of USD)** | Indicator | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Rate | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Interest Income | 273 | 673 | -59.4% | 653 | 1,359 | -51.9% | | Interest Expense | (26,211) | (25,756) | -1.8% | (52,247) | (51,570) | -1.3% | | Foreign Currency Transaction Gains, Cost Recovery Income, and Other | 1,040 | 1,428 | -27.2% | 1,159 | 2,590 | -55.3% | | **Net Non-Operating (Expense) Income** | **(24,898)** | **(23,655)** | **-5.3%** | **(50,435)** | **(47,621)** | **-5.9%** | - Interest income primarily stems from interest on cash reserves, while interest expense is mainly from the Goldman Sachs Credit Agreement, UniCredit Term Loan, CPL Credit Facility, VICI PropCo financing obligation, and deferred financing costs[203](index=203&type=chunk)[204](index=204&type=chunk) - Cost recovery income, primarily related to CDR infrastructure construction, amounted to **$1.0 million** in H1 2025 and **$1.1 million** in H1 2024[205](index=205&type=chunk) [Taxes](index=43&type=section&id=Taxes) This section details the company's income tax expense and effective tax rate for the reporting period - In H1 2025, the company recognized **$1.7 million** in income tax expense on a **$26.7 million** pre-tax loss, resulting in a **-6.5%** effective tax rate, a significant improvement from **-102.2%** in H1 2024[206](index=206&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=43&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section analyzes the company's liquidity and capital resources, including cash flows, working capital, debt levels, and future capital expenditure plans **Cash Flow and Working Capital Overview (Thousands of USD)** | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 6,658 | (8,476) | | Net Cash Used in Investing Activities | (12,982) | (36,052) | | Net Cash Used in Financing Activities | (7,867) | (381) | | **Cash, Cash Equivalents, and Restricted Cash (End of Period)** | **85,807** | **123,444** | | **Working Capital** | **35,062** | **79,331** | - Net cash used in investing activities for H1 2025 was **$13.0 million**, primarily for Polish casino licenses, US property gaming machines and related purchases, Colorado and West Virginia exterior renovations, Nevada elevator upgrades, and property renovations in Canada and Poland[210](index=210&type=chunk) - Net cash used in financing activities for H1 2025 was **$7.9 million**, including **$4.7 million** in distributions to non-controlling interests, **$1.0 million** for common stock repurchases and retirements, and **$2.2 million** in net debt repayments[213](index=213&type=chunk) - As of **June 30, 2025**, total debt (net of deferred financing costs) was **$328 million**, with net debt at **$252.5 million**, an increase from **$218.4 million** on **June 30, 2024**, primarily due to reduced cash balances[215](index=215&type=chunk) **Remaining Debt and Lease Payments for 2025 (Thousands of USD)** | Type | Amount | | :--- | :--- | | Debt Maturities (Goldman Sachs, CPL, UniCredit) | 4,682 | | Operating Lease Payments | 3,693 | | Finance Lease Payments | 227 | | Master Lease Agreement Cash Payments (including CPI and deferred rent) | 30,000 | | Nugget Lease Payments (non-controlling party) | 3,900 | - The company has **$30 million** available under its revolving credit facility, with estimated remaining capital expenditures for **2025** of approximately **$8.1 million**, primarily for maintenance[223](index=223&type=chunk)[224](index=224&type=chunk) - Of the company's **$85.5 million** in cash and cash equivalents as of **June 30, 2025**, approximately **$45.8 million** is held by foreign subsidiaries, including **$23.3 million** by Canadian subsidiaries and **$15.7 million** by Austrian subsidiaries, which are not available for US operations unless repatriated[227](index=227&type=chunk) Part II – OTHER INFORMATION This section provides additional information not covered in Part I, including legal proceedings, equity security sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company may face various legal proceedings in its ordinary course of business, but management does not anticipate a material adverse impact on its financial condition, cash flows, or operating results - The company may face various legal proceedings in its ordinary course of business, but does not expect a material impact on its financial condition, cash flows, or operating results[232](index=232&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Since **March 2000**, the company has had a stock repurchase program authorizing up to **$15 million** in common stock repurchases, with approximately **$13.8 million** remaining as of **June 30, 2025**, and under a 10b5-1 plan announced on **May 14, 2025**, **428,734** shares were repurchased and retired for **$0.9 million** by **June 30, 2025** - The company has had a stock repurchase program since **March 2000**, authorizing up to **$15 million** in common stock repurchases, with approximately **$13.8 million** remaining as of **June 30, 2025**[233](index=233&type=chunk) - On **May 14, 2025**, the company announced a 10b5-1 trading plan to repurchase up to **$3 million** of common stock; as of **June 30, 2025**, **428,734** shares were repurchased and retired for **$0.9 million**, with the plan expiring on **July 31, 2025**[234](index=234&type=chunk)[236](index=236&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) For the fiscal quarter ended June 30, 2025, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by the company's directors or officers - For the fiscal quarter ended **June 30, 2025**, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by the company's directors or officers[237](index=237&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed under Regulation S-K Item 601(b)(10), including the company's articles of incorporation, amended bylaws, Smooth Bourbon, LLC operating agreement, and various certifications required by the Sarbanes-Oxley Act - Exhibits include the company's articles of incorporation, amended bylaws, Smooth Bourbon, LLC operating agreement, and various certifications required by the Sarbanes-Oxley Act[239](index=239&type=chunk) [Signatures](index=48&type=section&id=Signatures) This report was signed on **August 6, 2025**, by the duly authorized representative of the registrant, in accordance with the requirements of the Securities Exchange Act of 1934 - This report was signed by Margaret Stapleton, Chief Financial Officer, on behalf of Century Casinos, Inc. on **August 6, 2025**[241](index=241&type=chunk)

Financial Performance & Growth Strategy - The company's North American property footprint includes 11 properties with 7,104 slot machines and 142 table games as of December 31, 2023 [11, 14] - The company targets revenue of $635 million in 2024, a 10% increase, and $700 million in 2025 [35] - The company projects Adjusted EBITDAR of $134 million in 2024 and $168 million in 2025 [35] - The company anticipates net cash generation of -$31 million in 2024 and $30 million in 2025 [35] Missouri Casino Operations - In 2023, Cape Girardeau and Caruthersville generated $111.673 thousand in Net Operating Revenue, an 18.4% increase compared to $94.309 thousand in 2019 [50] - In 2023, Cape Girardeau and Caruthersville generated $45.745 thousand in Adjusted EBITDAR, a 45.3% increase compared to $31.475 thousand in 2019 [50] - The Adjusted EBITDAR margin for Cape Girardeau and Caruthersville was 41.0% in 2023, compared to 33.4% in 2019 [50] Strategic Initiatives & Capital Projects - The company is undertaking various capital projects with an estimated total capex requirement of $18 million - $22 million, projected to yield an Adjusted EBITDAR impact of $10 million - $15 million [31] - The Caruthersville land-based casino and hotel project is expected to increase GGR by a projected 22% [101, 102] - The Riverview hotel project is projected to generate $10 million - $12 million in annualized incremental revenue and $3 million - $5 million in annualized incremental Adjusted EBITDAR [82, 83]

Core Viewpoint - Century Casinos, Inc. has entered a long-term agreement with BetMGM to introduce BetMGM's sports betting platform in Missouri, enhancing its market presence and revenue potential [1][2][3]. Group 1: Agreement Details - BetMGM will operate an online and mobile sports betting application under Century's license in Missouri, including a percentage of net gaming revenue payable to Century with a guaranteed minimum [2]. - The agreement also allows for retail sportsbook options to be exercised at Century's discretion [2]. Group 2: Company Statements - Century Casinos' Co-CEOs expressed excitement about the partnership with BetMGM, highlighting it as a step forward in leveraging their Missouri licenses and providing premium entertainment experiences [3]. - The agreement is contingent upon obtaining all necessary gaming licenses and regulatory approvals [3]. Group 3: Company Overview - Century Casinos operates various casino entertainment properties across the United States, Canada, and Poland, with a focus on expanding its portfolio [5]. - The company trades on The Nasdaq Capital Market under the symbol CNTY [6].

Financial Data and Key Metrics Changes - Revenues for Q1 were $130.4 million, with EBITDAR at $20.2 million, maintaining operating margins consistent with Q1 of the previous year despite challenges [4][5] - The impact of weather, leap year, and reduced sports betting revenue in Colorado was estimated to be around $2 million compared to Q1 last year [5] - Carded gaming revenue increased by 1%, while uncarded gaming revenue decreased by 2.5% across all U.S. properties [5] Business Line Data and Key Metrics Changes - In Missouri, the new Carratus property saw carded gaming revenue grow by 12% and uncarded revenue increase by 23%, leading to a total gaming revenue increase of 17% or $2.1 million compared to Q1 last year [6][7] - The Century Casino and Hotel in Cape Girardeau experienced a 5% increase in patrons and a 2% increase in trips, although gaming win was flat due to lower hold [12] - In Colorado, carded revenue grew by 7% in Central City, while uncarded revenue decreased by 36% [13][14] Market Data and Key Metrics Changes - Total visitor volume decreased by 3%, with a notable reduction in visits from the 50 age group, partially offset by a 1% increase from younger guests [6] - The number of patrons living more than 75 miles from the Carratus property increased by 34%, contributing to a 23% increase in total visitors [9] - In the East segment, high-end customers outperformed low to mid-tier customers, with gaming revenue from the upper segment increasing by 10% [16] Company Strategy and Development Direction - The company is focusing on expanding its market presence, particularly in Missouri, with plans for sports betting to go live towards the end of the year [13] - There is a commitment to operational discipline and efficiency improvements, with expectations for higher EBITDA and cash flow moving forward [24] - The company plans to balance a conservative CapEx program with returning capital to shareholders, including stock buybacks [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving consumer behavior and spending patterns since mid-March, with April showing an estimated 5% increase in EBITDA compared to last year [25][26] - Despite economic uncertainties, management is more confident in the long-term prospects of the company than in the previous year [26] - The company does not anticipate significant competitive supply impacting its operations this year or next [27] Other Important Information - The company's cash and cash equivalents at the end of the quarter were $85 million, with a total principal amount of debt outstanding at €340 million [23] - The company expects to spend $4 million on growth projects and $14 million on maintenance CapEx this year [24] - The company is in discussions regarding the potential sale of its Polish operations, with two interested parties emerging [22] Q&A Session Summary Question: Have you noticed any softening in consumer behavior for your Canadian assets? - Management indicated that lower revenue is not significant and attributed it to weather and one less gaming day, expressing no concerns [33] Question: Can you provide an update on initiatives at Rocky Gap? - Management mentioned completed renovations and marketing initiatives targeting the Baltimore and Washington DC areas to attract higher net worth guests [36] Question: What has changed regarding year-end leverage targets? - Management noted a positive trend since mid-March but remained cautious about projecting this trend for the full year [44] Question: Are you looking to monetize your casino database in Alberta? - Management mentioned potential partnerships with the Alberta Gaming Commission for database sharing but did not see other opportunities at this time [48] Question: What is the strategy for revenue growth in Missouri? - Management confirmed a proactive approach to push revenue up while maintaining cost discipline, particularly targeting the 75+ mile customer base [55] Question: What is the timeline for the sale of Polish assets? - Management believes the sale could happen in 2025 but acknowledged previous misestimations regarding the timeline [57] Question: What is the capacity for stock buybacks? - Management indicated plans to start stock buybacks with a single-digit million dollar volume between now and the next earnings release [59]

Financial Data and Key Metrics Changes - Revenues for Q1 2025 were $130.4 million, with EBITDAR at $20.2 million, maintaining operating margins consistent with Q1 of the previous year despite challenges [4][5] - The impact of weather, leap year, and lower sports betting revenue in Colorado was estimated to reduce EBITDAR by approximately $2 million compared to Q1 of last year [5][25] - Carded gaming revenue increased by 1%, while uncarded gaming revenue decreased by 2.5% across all U.S. properties [5] Business Line Data and Key Metrics Changes - In Missouri, the new Caradasil property saw carded gaming revenue grow by 12% and uncarded revenue increase by 23%, leading to a total gaming revenue increase of 17% or $2.1 million compared to Q1 of last year [6][7] - The Century Casino and Hotel in Cape Girardeau experienced a 5% increase in patrons and a 2% increase in trips, although gaming win was flat due to lower hold [10][11] - In Colorado, carded revenue grew by 7% in Central City, while uncarded revenue decreased by 36% [12][13] Market Data and Key Metrics Changes - Total visitor volume decreased by 3%, with a notable reduction in visits from the 50 age group, partially offset by a 1% increase from younger guests [6] - The number of patrons living more than 75 miles from the new Caradasil property increased by 34%, contributing to a 23% increase in total visitors [8] - In the East segment, gaming revenue from upper-tier customers increased by 10%, while lower-tier customers saw a decline [15][16] Company Strategy and Development Direction - The company is focusing on expanding its market presence, particularly in Missouri, by targeting customers living 75 miles or more from its properties [12][54] - There is an emphasis on operational discipline and cost management to improve profitability, with plans to enhance marketing initiatives to attract higher net worth guests [11][54] - The company is also finalizing partnership agreements for sports betting in Missouri, expected to provide high-margin EBITDAR [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving consumer behavior and spending patterns since mid-March, with April showing an estimated 5% increase in EBITDA compared to last year [25][26] - Despite economic uncertainties, management is confident in the long-term prospects of the company, noting no significant competitive supply issues anticipated for this year or next [26][27] - The company plans to balance its capital expenditures with shareholder returns, indicating a cautious approach to stock buybacks in light of market conditions [27] Other Important Information - The company reported a cash position of approximately $85 million and no debt maturities until 2029, with expectations for net debt to EBITDA ratios to decrease significantly by year-end [23][24] - The company is committed to divesting its operations in Poland, with ongoing discussions with interested parties [22] Q&A Session Summary Question: Have you noticed any softening in consumer behavior for your Canadian assets? - Management indicated that lower revenue is not significant and attributed it to weather and one less gaming day, expressing no concerns [31][33] Question: Can you provide an update on initiatives at Rocky Gap? - Management confirmed completed renovations and marketing initiatives targeting Baltimore and Washington DC areas to attract higher net worth guests [35] Question: What has changed regarding year-end leverage targets? - Management acknowledged a positive trend since mid-March but remained cautious about projecting this trend for the full year [41][43] Question: Are you looking to monetize your casino database in Alberta? - Management mentioned potential partnerships with the Alberta Gaming Commission for database sharing but did not foresee other opportunities [44][47] Question: Are you focusing on revenue growth or maintaining EBITDA levels in Missouri? - Management aims for both revenue growth and cost discipline, particularly targeting the 75-mile customer base [52][54] Question: What is the timeline for divesting Polish assets? - Management believes divestment could occur in 2025 but acknowledged previous misestimations [55][56] Question: What is the capacity for stock buybacks? - Management plans to initiate stock buybacks with a single-digit million dollar volume between now and the next earnings release [57][58]