Wall Street analysts were kept on a short leash during Century Casinos’s third-quarter earnings call. Discussion was terminated after 35 minutes. That discussion frequently centered on Century’s stated determination to refocus its business toward higher-value casino players. The company blamed low-end softness, in part, for recent financial disappointments.
In the third quarter, according to co-CEO Peter Hoetzinger, high-level play was up eight percent, while lower-end action was down nine percent, flattening gross gaming revenues. Visitation followed a similar pattern.
What accounted for the low-end softness? “It’s hard to say, but we believe it has to do with uncertainty around tariffs,” which usually manifests among lower-income cohorts (15 percent to 25 percent of Century’s customer base), according to Hoetzinger. However, “There’s a friendly outlook.”
Nor did he rule out cost-cutting at Century. “There’s always the possibility to tighten the belt further.
“Last year was a transitory period for us but now we see a clear path ahead,” said Hoetzinger. He added that he was more confident than at any time in the preceding 12 months.
Hoetzinger began the call by calling out “solid third-quarter results,” watered down by weakness in the western United States and Poland. “The quarter started really well,” Hoetzinger recounted, hitting a wall in September, due to the absence of a sports betting fee from Tipico and no revenue from a closed casino in Poland.
“Adjusting for those,” Hoetzinger continued, “third-quarter EBITDAR would have increased by five percent. Not bad at all.”
Previewing the fourth quarter, Hoetzinger disclosed that cash flow was up 20 percent in October. He also expected players and company alike to benefit from the most recent federal budget, with its changes in the tax code.
Highlighting Century Caruthersville in Missouri, co-CEO Erwin Haitzmann said, “It continues to exceed expectations,” including 29 percent higher gambling win and that “operating margins remain high. Caruthersville has been an outstanding success.”
Farther north in Cape Girardeau, “The property continues to perform very well against competition from Illinois,” reported Haitzmann. He expected the December 1 advent of sports betting “to elevate its profile.”
Some adversity was acknowledged in Cripple Creek, Colorado, “driven by the novelty effect of Chamonix,” according to Haitzmann. Table games have been replaced with electronic tables, with no adverse effect on revenues, but at lower cost.
Asked if Century would phase out live-dealer games in favor of ETGs, Haitzmann replied, “Yes, but not necessarily. In Colorado, it was just so obvious.” Elsewhere, live-dealer games and ETGs would coexist.
To the east, “performance across the board was strong” at Mountaineer in West Virginia, with cash flow up to $5 million in the quarter. Similarly, Maryland’s Rocky Gap Resort saw $4.9 million in cash flow, driven by high-end play.
In this context, the Sparks Nugget was somewhat of a problem child. According to Haitzmann, it “had a stand-up August, but the quarter was still challenging,” with July and September weak. He said that marketing and the concert lineup were being tweaked. Also, an expanded convention center will debut in January.
Haitzmann was already starting to see the fine-tuning of the marketing take effect going into 2026. He said Century was also focusing on its Sparks hotel, a destination unto itself, along with upgrading and expanding F&B offerings in the Reno suburb.
The Sparks Nugget was said to be discussing group business as far out as 2031. Haitzmann expected that aspect of 2026 to be better than 2025. “There was also less conference business,” Haitzmann said of the third quarter. “That couldn’t be changed in the short term.”
Concerts, however, lost $300,000 in the quarter. “We couldn’t book who we wanted to,” Haitzmann explained. “We’ve not been very successful in that respect.”
He elaborated that Century couldn’t land as many country artists as it wanted and that opting for less-expensive acts “was probably not a good decision.” Now Century is looking for bigger-ticket artists, such as upcoming act Brooks & Dunn.
“We’re focusing on a clear repositioning strategy” at the Nugget, Haitzmann said, focusing on high-value players from California and away from low-end patrons.
As for Century’s Canadian growth, Haitzmann credited “a little bit” of U.S. synergy, “but it’s more incremental.” He noted that the St. Albert casino in Alberta had erected a new façade and its management “is very motivated. We have a really motivated crew up there, which seems eager to perform.”
On the subject of stock repurchases, CFO Margaret Stapleton said Century is currently analyzing what to do next year. “Don’t expect any large moves,” Haitzmann added with regard to either buybacks or the retirement of debt.
Century ended the quarter with a 6.9-to-one ratio of debt to cash flow, said Hoetzinger. He added that there would be no immediate debt maturities or any significant capex expenditures in the coming year.
