What immediate operational improvements can be made across the U.S. portfolio to enhance performance, particularly given the new EVP's perspective?

Lyle Randolph highlighted maximizing slot floors with newer, in-demand games to cater to changing customer preferences, and then leveraging database marketing to re-engage inactive customers by showcasing property improvements. He emphasized competing on the quality of the gaming experience. “one of the keys is that we want to ensure that our slot floors are maximized for each of the markets... That means getting newer games and product on the floor... making sure that we have the games people want to play, the slot floors optimized and then all the other pieces start to come together, then we can start driving database marketing and pushing those people into give us another try.”

Is the recent launch of online gaming in Alberta causing any cannibalization of revenue from Century Casinos' physical properties?

Management stated they are not currently seeing any cannibalization from Alberta online gaming, suggesting it might be too early to tell or that it could be a neutral fertilization effect. “No, we don't. Maybe it's too early, but maybe it's not happening at all. It may well be that it's neutral fertilization to an extent.”

What operational initiatives remain unfinished at The Nugget, and what incremental EBITDA opportunity is expected over the next 12-24 months?

Lyle Randolph indicated that initiatives are ongoing, with continuous adjustments based on results. He sees significant runway ahead, focusing on expense control, driving additional gaming revenue, and optimizing marketing efforts. He also highlighted the success of entertainment events in drawing crowds. “we still think that there's a lot of ramp up and a lot of opportunity as we move forward... making sure that our slot floor is optimized and then all the other pieces start to come together, then we can start driving database marketing and pushing those people into give us another try.”

CNTY

Century Casinos (CNTY) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 7, 2026

Source: earnings call transcript

Executive summary

Century Casinos Q2 FY26 — Record Revenue and Adjusted EBITDA Driven by North American Operations

Century Casinos delivered record Q2 revenue and adjusted EBITDA, primarily driven by strong performance across its North American casino portfolio, benefiting from capital investments and operational efficiencies. While Poland faced headwinds from a casino closure and low table game hold, management is focused on monetizing international operations to become a U.S.-centric company and reduce leverage, with asset sales expected to provide clarity on debt reduction by year-end.

Highlights

Net operating revenue reached an all-time Q2 record of $152 million, a 1% increase year-over-year.
Adjusted EBITDA hit an all-time Q2 record of $31.7 million, up 5% year-over-year.
North American operations delivered strong growth with EBITDA up 12% in Q2 and 17% year-to-date, with U.S. properties' average margin increasing from 24% to 26% and Canada's from 28% to 30%.
The Nugget casino showed exceptional performance with net operating revenue up 16% and adjusted EBITDA up 93%, marking its third consecutive quarter of YoY EBITDA growth.
Missouri properties achieved 7 consecutive quarters of year-over-year adjusted EBITDA growth, with Crothersville recording the highest percentage increase in adjusted gross revenue among all 13 casinos in the state.

Concerns

Poland's segment underperformed due to the closure of the casino at the Hilton motel in Warsaw and an unusually low table game hold, resulting in only $0.1 million adjusted EBITDA for the quarter.
Rocky Gap's net operating revenue was down slightly less than 1% due to a more challenging competitive and consumer environment, though adjusted EBITDA remained flat.
Mountaineer experienced slightly softer slots, tables, and hotel revenue, with the hotel comparison impacted by a large construction group in the prior year.

Guidance & targets

Category	Target	Timeline	Confidence
Net debt-to-EBITDA ratio	well below 6x high materiality	FY26	High
Capital expenditure	$15 million medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
North American Operations Core operational metric for the company, showing strong growth across the board. Adjusted EBITDA growth Q2: 12%Adjusted EBITDA growth YTD: 17%	—	—	—	—
U.S. Operations Generated 75% of total revenue and EBITDA, demonstrating continued operating leverage with EBITDA growing more than twice as fast as revenue. Adjusted EBITDA growth Q2: 12%Adjusted EBITDA growth YTD: 16%Average property operating margin: 26% (up from 24%)	$111.6 million	5%	—	$28.9 million Adjusted EBITDA
Canada Operations Solid quarter with broad-based growth across all four properties, led by Century Mile and Century Saint Albert. Benefiting from capital investments and operational improvements. Adjusted EBITDA growth: 11%Average property operating margin: 30% (up from 28%)Total operating expenses decline: 1.3%	$20.4 million	2.2%	—	$6.2 million Adjusted EBITDA
Poland Operations Underperformed due to the closure of Rosa Casino, startup losses from the new Woof Casino, and unusually low table game hold at Presidential Casino. July showed significant improvement. Table game hold reduction vs theoretical expectations: $1 millionOne-time adjusted EBITDA addbacks in Q2 2025: $450,000	$19.9 million	—	—	$0.1 million Adjusted EBITDA
The Nugget Third consecutive quarter of year-over-year adjusted EBITDA growth, driven by entertainment, gaming floor optimization, and hotel performance. Adjusted EBITDA growth: 93%Slot win increase: 6%Hotel cash revenue increase: 36%Hotel occupancy increase: 19%Transient corporate room nights increase: 300%Guests generating >$400 ADT increase: 20%	—	16% (net operating revenue)	—	—
Missouri Properties Consistent performers with broad growth across player segments. Crothersville achieved its highest quarterly gross gaming revenue, net revenue, coin-in, and slot win in its history. 7 consecutive quarters of YoY adjusted EBITDA growthCape Gerardo Adjusted EBITDA growth: 9.6%Crothersville Adjusted EBITDA growth: 5.5%Crothersville rated gaming revenue increase: 32%Crothersville unique guests increase: 9%Crothersville unique guests >50 miles increase: 15%Crothersville highest percentage increase in adjusted gross revenue among all 13 casinos in state (FY reported by MGC)	—	over 8% (combined net operating revenue)	—	—
Rocky Gap Resilient performance despite competitive environment and new casino opening, with disciplined expense management offsetting pressures. Slot coin-in increase: 2%Golf Cash revenue increase: 13%Hotel room nights increaseAdjusted EBITDA YTD: 9% ahead of prior year	down slightly less than 1% (net operating revenue)	—	—	essentially flat (Adjusted EBITDA)
Mountaineer Generated highest gaming revenue of any property in the company. Slots, tables, and hotel revenue were slightly softer, but customer trends in high-value and younger segments were encouraging. Sports betting and iGaming growthHorse racing revenue increase: nearly 40%Gaming revenue from >$400 ADT customers increase: 7%Revenue from 21-39 year old customers increase: 31%Adjusted EBITDA YTD: 6% ahead of last year	—	—	—	—
Central City One of the strongest performances in the U.S. portfolio, showing improved efficiency in revenue generation with marketing expenses declining. Adjusted EBITDA growth: more than 32%Adjusted EBITDA YTD: nearly doubled vs prior yearGuest volume increase: 16%Coin in increase: nearly 20%Hotel occupancy: 74%	—	approximately 11.5% (net operating revenue)	—	—
Cripple Creek Optimistic about market evolution, viewing the nearby Xiaomi development as an opportunity to increase overall visitation. Adjusted EBITDA for first 6 months: well ahead of last yearGrowth in rated and unrated playIncrease in unique carded guests	—	2% (net operating revenue)	—	—

Deals & partnerships

— Sale of international casino operations in Poland.

Company is exploring sale of Poland operations, with two groups currently in due diligence. Described as more difficult due to geopolitical environment.

— Sale of international casino operations in Canada.

Company has two packages for Canada (all four properties together, or two racinos and two commercial casinos separately). Interest for both, with public disclosure on at least one package expected before year-end.

Risks & headwinds

Underperformance in Poland due to casino closure and unusually low table game hold. Q2 FY26

$1 million reduction in gaming revenue vs. theoretical expectations due to low table game hold; $0.1 million adjusted EBITDA for the segment in Q2.

Mitigation:Hopeful and already see signs for improved performance over the next several quarters; table hold has normalized since June; no gaming license expirations scheduled over the next 2 years.

Challenging competitive and consumer environment impacting Rocky Gap. Q2 FY26

Net operating revenue down slightly less than 1%.

Mitigation:Disciplined expense management helped to offset those pressures and adjusted EBITDAr essentially remained flat.

Evolving gaming market with more options, including online gaming, leading to changing customer engagement patterns. Ongoing

Slots, tables, and hotel revenue were slightly softer at Mountaineer.

Mitigation:Leveraging Mountaineer's combination of casino gaming, live horse racing, hotel, dining, and entertainment options to deliver unique experiences; refining segmentation, reinvestment, and player development using its large customer database.

Geopolitical environment making the sale of Poland operations more difficult. Ongoing

null

Mitigation:Two groups are in due diligence, should get more clarity in a couple of months.

What to watch in Q3 FY26

Poland Adjusted EBITDA

Q3 FY26

Current $0.1 million (Q2 FY26)

Target Improved performance, potentially reflecting July's strength

Why it matters

Poland's recovery is crucial for overall international segment performance and potential divestiture value.

Poland soiled party a bit... but we are hopeful and already see signs for improved performance over the next several quarters... Even Poland had a much better July, generating almost as much EBITDA in the month as it did in the entire first half of the year.

Find out whether CNTY delivers this. Inve re-checks your case every morning.

Q&A highlights

How much did the February ruling on skill games and subsequent enforcement contribute to Missouri's strong Q2, and what is the expected ongoing impact given the pace of enforcement?

Management confirmed a positive impact from the Missouri Attorney General's action against illegal skill games, noting that the effects were more pronounced towards the end of Q2. They anticipate continued improvement as enforcement progresses and more illegal games are removed from locations.

“we do think that there's positive impact. In Q2, those impacts were likely kind of spread towards the -- closer to the end of the quarter as we still saw it locally, especially still locations that had those games. And in fact, we still see some of those. So we think that there's still continued improvement with the enforcement that we may even see additional opportunity as Missouri begins to enforce the law and get those legal games out of these locations.”

asked by Jeff Stantial · answered by Lyle Randolph

2 min read 5 chapters

Detailed narrative

North American Operational Strength

Century Casinos' North American operations, comprising the U.S. and Canada, were the primary drivers of the company's record Q2 performance. The U.S. segment saw a 5% increase in revenue and a 12% increase in adjusted EBITDA, with average property operating margins improving from 24% to 26%.

Canada contributed with a 2.2% revenue increase and an 11% adjusted EBITDA increase, raising its average property margin from 28% to 30%. This broad-based growth across North America highlights the success of recent capital investments and operational improvements.

Nugget's Turnaround and Growth

The Nugget casino in Northern Nevada demonstrated significant momentum, achieving a 16% increase in net operating revenue and a 93% surge in adjusted EBITDA. This marks its third consecutive quarter of year-over-year adjusted EBITDA growth, driven by a strong entertainment calendar, a 6% increase in slot win, a 36% increase in hotel cash revenue, and a 19% increase in hotel occupancy.

The property also saw a 300% increase in transient corporate room nights, indicating effective utilization during softer periods.

Missouri's Consistent Performance and Market Share Gains

Century's Missouri properties delivered their seventh consecutive quarter of year-over-year adjusted EBITDA growth. Combined net operating revenue increased over 8%. Notably, Crothersville recorded the highest percentage increase in adjusted gross revenue among all 13 casinos in Missouri for the fiscal year ending June, and Century's Missouri operations collectively achieved the highest year-over-year percentage growth in gaming revenue in the state.

This performance is attributed to improved customer engagement and the maturing investment in the Crothersville market, which is expanding its geographic reach.

Poland's Transition and Future Outlook

The Polish segment faced significant headwinds in Q2, with net operating revenue of $19.9 million and adjusted EBITDA of only $0.1 million. This was primarily due to the closure of the Rosa Casino in June 2025 and an unusually low table game hold at the Presidential Casino, which reduced gaming revenue by approximately $1 million versus theoretical expectations.

The newly opened Woof Casino in February 2026 also incurred startup losses. Despite these temporary challenges, management believes the underlying outlook is stabilizing, with no gaming license expirations scheduled for the next two years, and July showing significant improvement.

Strategic Asset Monetization and Deleveraging

Century Casinos is actively pursuing the monetization of its international operations (Poland and Canada) to transition into a U.S.-centric company and reduce leverage. While Poland's sale is more complex due to the geopolitical environment, two groups are in due diligence.

For Canada, the company is exploring selling its four properties as a single package or two separate packages (racinos and commercial casinos), with public disclosure on at least one Canadian package expected before year-end. These sales are intended to facilitate a meaningful paydown of the term loan B and improve the net debt-to-EBITDA ratio to well below 6x by year-end.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.