Colorado-based casino operator Century Casinos has posted revenue up by 11% to $430.5 million and Adjusted EBITDA of $103.3 million, an increase of 6%, in full year 2022. The results came the same week the company received tentative approval from Nevada commissioners to acquire Sparks’ Nugget Casino Resort for $195 million.
However, the firm’s stock fell 16% in New York on Friday after the regional casino operator reported a significant drop in earnings for the last year amid higher costs. For Q4, the company posted a net loss of $4 million, while for the whole year, net earnings attributable to shareholders were down by 61% to only $8 million.
The company said it lost 14 cents a share on revenue of $103.8 million in the last three months of 2022, missing analysts’ forecasts of a profit of 2 cents on sales of $104.2 million. In a statement, co-CEOs Erwin Haitzmann and Peter Hoetzinger instead highlighted the company concluded 2022 with record EBITDA and operating revenue despite disruptions and temporary closures at Century Casino Caruthersville, amid low water levels in the Mississippi River.
Century Casino Caruthersville
In December, the company completed the relocation of the Caruthersville casino from the riverboat and barge to the land-based pavilion where Century will operate until the casino and hotel development is complete. Construction on that project and the Century Casino Cape Girardeau hotel development, also in Missouri, are on schedule to be completed in 2024.
Management also highlighted the Nevada Gaming Control Board’s unanimous approval recommendation to acquire the Nugget Casino Resort in Sparks. The application must still be approved by the Nevada Gaming Commission at its upcoming meeting on March 23. If greenlighted, Century plans to close the acquisition in early April, the company said.
“We are finalizing our plans for initial investments and upgrades, and I’m more excited than ever about the potential for improvements,” Hoetzinger told investors. Century’s immediate focus in Sparks will be on the Nugget’s casino floor and identifying cost-saving opportunities across the venue, which is set to become the company’s largest resort and its flagship property.
Nugget Casino Resort in Sparks
Also in the coming months, Century expects to close its purchase of the operating rights of the Rocky Gap Casino Resort in Flintstone, Maryland, which could occur in June or July. Current operator Golden Entertainment announced the $260 million sale of the property last August. Casino landlord Vici Properties is acquiring the real estate.
Century’s five casinos in the United States in Colorado, Missouri, and West Virginia accounted for 62% of full-year revenue. The growing role of the US in the company’s operations came amid rumors that Century was looking to exit the Polish market by selling its two-thirds stake in Casinos Poland, using the capital for expansion of its North American presence.
However, in conversation with investors, the co-CEOs said Poland had a “solid performance” last year, meaning Century might not be in a rush to sell those operations after all. “Revenue was up 11%,” said Hoetzinger. “We don’t have any time pressure.”
See Century Casinos’ full 2022 financial report here.
Original article: https://www.yogonet.com/international/news/2023/03/13/66420-century-casinos-sees-record-revenue-for-fy22-but-shares-slide-amid-significant-earnings-drop
