Century Casinos has announced its financial performance for the fourth quarter and full year 2023, revealing a mix of achievements and operational hurdles across its portfolio of gaming establishments.
In the fourth quarter of 2023, Century Casinos reported an uptick in net operating revenue, reaching $143.8 million, marking a 39% increase compared to the same period in 2022. However, despite this revenue surge, the company experienced a slight dip in earnings from operations, which amounted to $12.6 million, a decrease of 9%.
However, the most notable development was the company’s net loss attributable to shareholders, amounting to $10.8 million, signifying a substantial change of 168%. Nonetheless, the quarter also saw an uptick in Adjusted EBITDAR, totaling $25.4 million, demonstrating a 17% increase compared to the previous year.
Looking at the full-year performance for 2023, Century Casinos reported a net operating revenue of $550.2 million, representing a growth of 28% over 2022. However, earnings from operations witnessed a marginal decline of 5%, totaling $64.0 million.
Peter Hoetzinger and Erwin Haitzmann, Co-Chief Executive Officers of Century Casinos
The company again reported a significant increase in net loss attributable to shareholders, amounting to $28.2 million, marking a change of 454%. However, Adjusted EBITDAR for the year stood at $114.0 million, showcasing a 10% increase compared to the prior year.
In a statement addressing the financial results, Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, shared insights into the company’s performance and provided a glimpse into its strategic outlook.
They acknowledged 2023 as a year of transition for Century, highlighted by two major acquisitions (Nugget Casino Resort, Nevada; and Rocky Gap Casino, Resort & Golf, Maryland) aimed at expanding the company’s US footprint to seven casinos.
Additionally, they highlighted ongoing construction projects in Missouri, the Cape Girardeau hotel and the Caruthersville casino and hotel, scheduled for completion in early April and late 2024, respectively.
“Unanticipated licensing delays that resulted in closures of three of our casinos in Poland in the fourth quarter caused earnings from operations in Poland to decrease compared to 2022,” the CEOs noted. “We have been awarded all three licenses, we reopened one casino in February 2024 and anticipate reopening the second casino this month and the final casino in a new location in the third quarter of 2024.”
“We are excited to look forward to 2025, when our newly acquired casinos are fully integrated into the company and to what we anticipate will be our first year since 2022 with no significant construction or renovation disruptions at our properties,” Haitzmann and Hoetzinger concluded.
Breaking down the performance by segment for Q4, Century Casinos witnessed a substantial increase in net operating revenue across its US operations, with revenue reaching $102.9 million, reflecting a growth of 65%. Canada was up 17%, while Poland posted a 13% drop, attributed to the aforementioned closures.
As of December 31, 2023, Century Casinos had $171.3 million in cash and cash equivalents, compared to $101.8 million in the previous year.
The company’s outstanding debt stood at $346.8 million, including $343.9 million related to a term loan under the credit agreement with Goldman Sachs Bank USA and $3.0 million of bank debt related to Century Resorts Management GmbH. Additionally, Century Casinos holds a $658.0 million long-term financing obligation under its Master Lease.
Original article: https://www.yogonet.com/international/noticias/2024/03/15/71273-century-casinos-report-28-surge-in-operating-revenue-for-2023-earnings-dip-to-126-million
