Century Casinos Posts Record Revenue Despite Q3 Net Loss
Century Casinos experienced a robust third quarter in 2023, witnessing a substantial 43% surge in net operating income. Nevertheless, despite this remarkable revenue expansion, the firm posted deficits in both operational earnings and net profits for the quarter. This outcome was primarily attributed to numerous property purchases and a significant divestiture that Century Casinos concluded during this timeframe.
The corporation, which manages casinos in the US and Canada, declared a total net operating income of $161.2 million for the quarter concluding September 30, 2023. This signifies a 43% rise compared to the corresponding period the previous year.
Despite the income surge, operational earnings underwent a decrease of 28%, reaching $14.5 million. This decline was chiefly driven by shortfalls in areas outside the US.
While operational earnings within the US actually displayed a healthy growth of 21%, hitting $19.8 million, operations in Canada and Poland witnessed substantial drops. Canada’s operational earnings plummeted by 47% to $2.1 million, and Poland’s contracted by 52% to $1.3 million.
This can be partially ascribed to Century Casinos’ strategic choice to divest a portion of its Canadian holdings. This sale encompassed four properties that were procured by a subsidiary of Vici Properties.
The agreement, finalized on September 6, 2023, totaled a purchase amount of CAD$221.7 million (approximately US$162.6 million at the time of the deal).
Century Casinos announced a net deficit attributable to shareholders of $14.2 million. While this reflects a loss, it’s noteworthy that it’s a considerable betterment compared to the same period the prior year, marking a 582% reduction. The basic loss per share stood at $0.47.
On an encouraging note, the company’s adjusted EBITDA exhibited strong expansion, escalating by 19% to reach $33.3 million.
Century Casinos’ joint chief executives, Erwin Haitzmann and Peter Hoetzinger, declared unprecedented net operating income and modified EBITDA subsequent to the prosperous incorporation of the Nugget Casino Resort and Rocky Gap Casino Resort and Golf Course.
They did concede that operational earnings and net profits experienced a decline this period due to singular expenses associated with the Rocky Gap purchase and the Canadian sale-leaseback deal. Nevertheless, they maintain a positive outlook, forecasting income and operational cost patterns to persist in line with recent quarters.
The procurement of the Rocky Gap Casino Resort in Maryland for $59.1 million represents a particularly significant advancement for the enterprise.