Century Casinos has posted a 43% increase in net operating revenue to $161.2 million for the third quarter ended September 30, 2023, up from $112.5 million in the same period in the previous year.
However, earnings from operations were $14.5 million in the third quarter, down 28% from $20 million in the Q3 of 2022. Century Casinos also registered a net loss of $14.2 million, down from net profit of $2.9 million in the same period last year. The losses are attributed to costs associated with the acquisitions of Nugget Casino Resort and Rocky Gap Casino.
“With our acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf we achieved record high net operating revenue and Adjusted EBITDA,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos said.
“One-time expenses related to the Rocky Gap acquisition and Canada sale-leaseback transaction negatively impacted our earnings from operations and net loss for the quarter. Looking ahead we anticipate revenue and operating expense trends to remain consistent with what we have seen the last several quarters.”
In September, Century completed its previously announced agreement for casino landlord VICI to acquire the real estate assets of Century Casino & Hotel Edmonton in Edmonton, Alberta; Century Casino St. Albert in Edmonton, Alberta; Century Mile Racetrack and Casino in Edmonton, Alberta; and Century Downs Racetrack and Casino in Calgary, Alberta for an aggregate purchase price of $162.6 million.
The completion of the Canada sale-leaseback reduced the company’s net debt from $255.5 million as of June 30, 2023 to $158.9 million as of September 30, 2023, Haitzmann and Hoetzinger added.
Before that, in July, the company completed its previously announced acquisition of the operations of Rocky Gap Casino Resort in Flintstone, Maryland, for $59.1 million. US revenue was 65.4% higher at $116.9 million on the back of the new casino additions.
Meanwhile, the Canada business saw a marginal increase to $21 million from $20 million in the previous year period. Revenues from Poland stood at $23.4 million in Q3 of 2023 from $21.7 million in the same period of last year.
As for Century’s year-to-date performance, revenue was 24.4% higher at $406.5 million. This, however, was accompanied by a 29.4% increase in operating expenses to $356.1 million.
Original article: https://www.yogonet.com/international/noticias/2023/11/10/69610-century-casinos-sees-43-revenue-surge-in-q3-but-acquisition-costs-lead-to-net-loss
