Century Casinos, Inc. (NASDAQ:CNTY) Q2 2023 Results Conference Call August 8, 2023 9:00 AM ET
Company Participants
Peter Hoetzinger - Vice Chairman, Co-CEO and President
Erwin Haitzmann - Co-CEO and the Chairman
Margaret Stapleton - CFO
Conference Call Participants
Jeff Stantial - Stifel Nicolaus
Jordan Bender - JMP Securities
Chad Beynon - Macquarie Research
Edward Engel - ROTH MKM
Operator
Good day, everyone, and welcome to today’s Century Casinos Q2 2023 Earnings Call. [Operator Instructions] Please note, this call may be recorded.
It is now my pleasure to turn today’s program over to Peter Hoetzinger. Please go ahead.
Peter Hoetzinger
Good morning, everyone, and thank you for joining our earnings call. With me on the call are my co-CEO and the Chairman of Century Casinos, Erwin Haitzmann as well as our Chief Financial Officer, Margaret Stapleton.
We would like to remind you that we will be discussing forward-looking information which involves several risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. The Company undertakes no obligation to update or revise the forward-looking statements whether as a result of new information, future events or otherwise. We provide a detailed discussion of the various risk factors in our SEC filings, and we encourage you to review these filings.
In addition, throughout our call, we’ll refer to several non-GAAP financial measures, including, but not limited to, adjusted EBITDA. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures can be found in our news releases and SEC filings available in the Investors section of our website at cnty.com. I’ll now provide an overview of the results of the second quarter 2023. And after that, there will be a Q&A session.
We delivered record second quarter net revenue of $136.8 million, an increase of 23% over Q2 of last year. The increase came from the addition of the Nugget Casino Resort in Nevada, which we took over on April 3rd. The revenue increase from the Nugget was offset to some extent by construction disruption at both Missouri properties. Excluding the Nugget, due to a like-for-like comparison, revenue was down 1%, which is not bad at all considering the Missouri disruption. Adjusted EBITDA for the second quarter was $29.3 million, down 2%.
In most of our operating segments, we faced a difficult comparison to last year. This was most pronounced in April and May, which accounted for all of the quarterly year-over-year decline. As you may recall, early last spring, we saw a temporary surge in business after mask mandates and other COVID restrictions were lifted. June’s year-over-year variance improved sequentially, performing better than last year. During the quarter, core customer trends remained solid, but as we get lower in the database, we didn’t perform quite as well. Also unrated play continues to drag.