Century Casinos(CNTY)2025-03-14 01:19Financial Data and Key Metrics Changes - For Q4 2024, the company's consolidated revenue was 21.1 million, down 17% [5][6]. - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [28]. Business Line Data and Key Metrics Changes - U.S. operations saw a revenue decline of 3% and EBITDA down 8%. Retail and low-end customer segments remained weak due to macroeconomic factors [6][7]. - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 27% and 32% respectively in the four months since opening [8][12]. - The Century Casino Hotel Cape Girardeau experienced an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [14][16]. Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to a 7% overall revenue decline [18]. - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, faced a 7% revenue decline and a 29% drop in EBITDA, primarily due to lower-end customer performance [20][21]. Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [32][33]. - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [17][34]. Management's Comments on Operating Environment and Future Outlook - Management noted that the lower-end consumer segment remains a significant concern, impacting overall revenue forecasts [38][39]. - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives and a reduction in capital expenditures [31][34]. Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend just €4 million on growth projects and €14 million on maintenance CapEx [30][31]. - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, due to lower contributions to EBITDA and cash flow [27][95]. Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the lower-end consumer weakness is the primary driver of the lower estimates, while mid and upper tiers are performing well [38]. Question: How is the revenue decline at the Nugget being addressed? - Management noted that the decline in casino revenue is closely tied to hotel revenue, and efforts are being made to revitalize the property and increase conference business [44][45]. Question: What impact will the Alberta Gaming Commission's suspension of gaming machines have? - Management does not expect any meaningful negative impact, estimating it to be around half a percent [49]. Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, focusing on revenue sharing models [82]. Question: Is there a consideration for stock buybacks? - Management expressed interest in stock buybacks but is restricted by insider laws and blackout periods [108].