Connor ParksAnalyst, CBREHey, everyone. Thanks for taking our questions. Lyle, good to hear from you this morning. With all the major properties performing well, another quarter of solid growth here and free cash flow turning a corner, how has this impacted the portfolio sale discussions, and M&A conversation, if at all? Then I guess somewhat related to that, my usual question on the term loan, where are we in the review process, and where are the puts and takes of how you are thinking about the de-leveraging discussion? Thank you.
Erwin HaitzmannChairman and Co-CEO, Century CasinosOkay. Peter, can you take that, please?
Peter HoetzingerCo-CEO, President, and Vice Chairman, Century CasinosYes, happy to. In terms of the sales process, as you know, over the last about three quarters or so, we’ve looked very hard at that, given the diverse nature of our portfolio, we’ve explored a number of different avenues to unlock value. We’re currently focused on monetizing our international operations to become a fully U.S.-centric company and reduce leverage. We make progress on these initiatives slowly but surely. Poland is the more difficult one with the war next door and that changing regulatory environment. Currently, two groups are in due diligence works. We’ve not given exclusivity to anybody. Let’s see what the outcome there is. We should, yeah, get more clarity in a couple of months, but very hard to say. In Canada, we have two packages.
We could sell all four together or we go the direction of selling the two racinos in one package and the two commercial casinos in another package. There’s interest for both. Again, one is a little bit more ahead than the other. We think that at least for one of those packages, we should be able to publicly disclose something well before the end of the year. That impacts the term loan B pay down, because with our current cash position, yes, we have some freely available, but we’d rather wait until we have more clarity on the asset sales, and then we can make a meaningful pay down. Also, we are in discussion with our lenders to get more flexibility. This is all ongoing and that’s all I can comment on.
We continue to make progress on all these initiatives, and we’ll update the market when we have definitive transactions to announce.
Stock analysis – cnty – Transcripts – q2 2026
PR Newswire – Century Casinos, Inc. Announces Second Quarter 2026 Results
Notes from Century August 7 Filing
Canada
In February 2023, the AGLC, Alberta’s gaming regulatory agency, approved a temporary increase from 15% of slot machine net sales retained by casinos to 17%, which was extended in January 2026 through March 31, 2029.
In 2024, a competitor received conditional approval from the AGLC to relocate its casino from Camrose, Alberta, to south Edmonton, approximately 11 miles from our Century Mile property. In May 2026, a judicial review of the AGLC’s decision determined that the competitor will need to reapply for relocation. At this time, there is no indication whether a new approval for the relocation will be granted. If the approval is granted, a new competitor in the Edmonton market near our Edmonton casinos could lead to a decrease in visitors to our casinos and have a negative impact on our results of operations in Canada.
In June 2025, Alberta’s Bill 48 regulating iGaming in Alberta passed. The bill created an open market for online sports betting and iGaming, with retail sports betting available at casinos and specific sports venues. Online sports betting and iGaming operators began operating in Alberta on July 13, 2026, and retail sports betting is subject to final regulatory details before launching. We plan to offer retail sports betting at our locations in Alberta through either a licensed third-party provider or the AGLC.
We discontinued off-track betting at our St. Albert property at the end of April 2026. We converted the previous OTB room into a slot VIP room with 12 additional slot machines.
Results in US dollars were impacted by a 2.3% increase in the average exchange rate between the US dollar and Canadian dollar for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The exchange rate remained constant for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Three Months Ended June 30, 2026 and 2025
The following discussion highlights results for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Explanations below are provided based on CAD results.
Net operating revenue increased due to increased gaming revenue at our St. Albert, Edmonton and Century Mile properties and increased food and beverage revenue at our St. Albert property. Net operating revenue at our Century Downs property remained constant. Operating costs and expenses remained relatively constant.
Six Months Ended June 30, 2026 and 2025
The following discussion highlights results for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Explanations below are provided based on CAD results.
Net operating revenue increased due to increased gaming revenue at all properties and increased food and beverage revenue at our St. Albert property, offset by decreased pari-mutuel revenue at our Century Mile and Century Downs properties. Operating costs and expenses remained relatively constant.
A reconciliation of net earnings attributable to Century Casinos, Inc. shareholders to Adjusted EBITDAR for this reportable segment can be found in the “Non-US GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above.
Phil has a question:
What is more disconcerting for the horse racing industry, Century Casinos share price slide, or the fact that most of the other bricks and mortar casinos that support horse racing are also in a downward spiral.
What Indigenous group will end up with the Century Properties in Alberta.
Would you buy a bunch of casinos in rented properties with inflated rents.
What’s Horse Racing Alberta’s contingency plan as Century’s stock continues its slide.
Phil M. Stockmen