Century Casinos reduces its losses; may be subject to acquisition
Century Casinos Initiates Strategic Review to Maximize Value in Poland and Beyond
Century Casinos, the international casino entertainment company, has announced the commencement of a strategic-review process to enhance shareholder value and position the company for future success. This review encompasses exploring various strategic alternatives, including asset sales, mergers, strategic partnerships, and even a full sale of the company [1][2][3].
In the second quarter of 2025, Century Casinos reported a 3% increase in revenue to $150.8 million, with a net loss of $12.3 million, a 70% decrease from the previous year. However, cash flow for the quarter grew by 10% to $30.3 million, and operating revenue jumped by 16% to $16.6 million [1][2].
The strategic review in Poland is particularly significant, as the country has been a standout performer for Century Casinos. In Q2 2025, Poland's revenue surged 23% to $24.7 million, and adjusted EBITDAR jumped 332% to $1.9 million [1].
Despite this growth, Century Casinos faced a setback in Warsaw, where it did not receive a license for a second casino. As a result, the company had to close its casino at the Hilton Hotel, as the flagship Warsaw casino license runs through 2028 [1]. However, Century Casinos was awarded a second license in Wroclaw, with a new casino expected to open in Q4 2025 [1][3].
The strategic review aims to unlock value within the existing Polish property portfolio, optimize capital structure, evaluate potential mergers or partnerships, and consider asset-level transactions or divestments [3]. No timetable has been set for the review’s conclusion, and no commitments or decisions have been made so far [3].
Century Casinos ended the quarter with $338.1 million in debt and $85.5 million cash on hand. The company's representatives, Hoetziner and Haitzmann, expressed pride in the company's portfolio strength and momentum, showing solid year-over-year growth and positive cash flow in the quarter [3].
This strategic-review process is part of a broader initiative to adapt to evolving market conditions, following recent capital expenditures and strong operational performance, especially in Poland [3]. Faegre Drinker Biddle & Reath LLP and Macquarie Capital have been engaged as legal and financial advisors, respectively, to assist with the process [1][2][3].
In summary, Century Casinos' strategic review in Poland is focused on potential asset sales, mergers, acquisitions, and other strategic moves to maximize value amid both strong growth and some licensing setbacks [1][3].
- In light of the strong growth in Poland and the ongoing evolving market conditions, Century Casinos is considering options in the casino-games industry to maximize value, such as asset sales, mergers, and acquisitions with potential partners in the finance sector.
- As a part of the strategic review process, Century Casinos is also evaluating the potential benefits of diversifying its business portfolio beyond Poland, exploring opportunities in other sectors like casino-and-gambling, aiming to secure a strong position in the global casino entertainment industry.
