Century Casinos Posts Record Revenue but Net Loss in Q3 2023
Century Casinos demonstrated robust performance in the third quarter of 2023, achieving a substantial 43% surge in net operating income. Despite this, the firm encountered a decrease in operating earnings and posted a net deficit, attributing this to a series of asset purchases and divestitures during the period.
The casino and leisure corporation, with a presence in both the United States and Canada, witnessed its net operating income reach $1.612 billion for the three months concluding on September 30, 2023. Domestic operations flourished with a 21% rise in operating earnings, totaling $19.8 million, while Canada and Poland experienced notable contractions. This is potentially linked to Century Casinos’ divestment of a segment of its Canadian holdings, encompassing four venues, to a Vici Properties affiliate. The transaction concluded on September 6, 2023, for a sum of CAD$221.7 million (equivalent to roughly US$1.626 billion at the time).
Notwithstanding the revenue expansion, Century Casinos declared a net loss of $1.42 million assignable to shareholders, a considerable escalation compared to the preceding year. This equated to a fundamental loss per share of $0.47. Conversely, the company emphasized a favorable trajectory in adjusted EBITDA, which ascended by 19% to attain $33.3 million.
Century Casinos’ joint chief executives, Erwin Haitzmann and Peter Hoetzinger, declared unprecedented net operating income and Adjusted EBITDA, driven by the successful purchases of Nugget Casino Resort, Rocky Gap Casino Resort, and its associated golf course.
They did note that non-recurring expenses related to incorporating Rocky Gap and a sale-leaseback deal in Canada affected the quarter’s operating earnings and net deficit. However, they voiced optimism that income and operating expenditures would level out in the next few months, reflecting recent patterns.
The firm’s strategic growth was further emphasized by the completed $59.1 million purchase of Rocky Gap Casino Resort in Maryland.
