Century Casinos (CNTY) has announced its financial results for the fourth quarter of FY 2025, revealing a net loss of $0.61 per share, which fell short of analysts' expectations. Despite this setback, the company is making strides in its operations and plans to divest its Polish business to help achieve its debt reduction targets.
While the overall financial picture remains challenging due to significant non-cash impairment charges from 2024 and high leverage, operational profitability has shown signs of recovery. The company's earnings per share (EPS) missed the consensus estimate by $0.15, although it still reflects a year-over-year increase of 79.25%.
Operational earnings surged by 117%, reaching $10.4 million, primarily driven by the performance of the new land-based casino in Caruthersville, Missouri, which opened in late 2024 and contributed to a 26% revenue boost in that market.
The launch of the BetMGM sportsbook in Missouri on December 1, 2025, also provided a late-quarter uplift, benefiting the East and Midwest segments.
However, the Polish operations continue to weigh on the company's overall margins due to one-time expenses linked to the closure of the Hilton Hotel casino. On a positive note, management confirmed the acquisition of a second license, with a new casino set to open in Wroclaw in February 2026.
In Canada, Century's operations have proven to be a reliable source of cash flow, maintaining stable EBITDAR margins despite a lack of major new investments in 2025. The consolidated Adjusted EBITDAR for Q4 2025 reached $23.9 million, marking a 13% increase from the previous year, even as revenues remained flat.
Management highlighted the temporary nature of the costs associated with the Polish closure and emphasized the solid margin performance of their North American portfolio. The Canadian operations benefit from a less stringent regulatory environment and lower marketing expenses compared to the competitive US market.
During the conference, Co-CEO Peter Hoetzinger reiterated the company's focus on maximizing returns from its recent investments. He stated, “2024 was a year of significant construction and disruption. In 2025, we prioritized stabilization, and as we move into 2026, our goal is to capitalize on the returns from these investments. With no major construction projects planned, we anticipate considerable growth in free cash flow.”
Management also noted that the Canadian properties in Edmonton and Calgary have been crucial in stabilizing cash flow while US construction projects were completed. Co-CEOs Erwin Haitzmann and Peter Hoetzinger provided optimistic insights for shareholders, stating, “We are seeing improvements among our lower-end customers and are pleased with the 13% growth in Adjusted EBITDAR compared to 2024. However, we believe our casino portfolio has yet to reach its full potential. We continue to explore strategic alternatives, including the potential sale of our Polish operations.”