Century Casinos experienced a robust third quarter in 2023, as evidenced by a 43% year-on-year surge in net operating income. Despite this, the firm witnessed a decrease in both operating earnings and net profits for the quarter. This outcome was attributed to numerous property purchases and divestments that Century Casinos concluded during the third quarter.
The corporation, managing casinos across the United States and Canada, declared net operating income of $161.2 million for the quarter concluding September 30, 2023, marking a 43% rise from the corresponding period the previous year.
Operating earnings faced a setback, contracting by 28% to $14.5 million. The decline was most notable in areas outside the United States. Within the US, operating earnings actually expanded by 21% to $19.8 million. Conversely, Canada experienced a 47% plunge to $2.1 million, and Poland witnessed a 52% decrease to $1.3 million.
This is potentially connected to the divestiture of Century’s Canadian holdings, encompassing four casinos, to a subsidiary of Vici Properties. The transaction was finalized on September 6, 2023, for an aggregate purchase value of C$221.7 million (equivalent to US$162.6 million at the time).
Century Casinos announced a net loss assignable to the company’s stakeholders of $14.2 million, representing a 582% year-on-year reduction, or $0.47 per basic share.
On an encouraging note, adjusted EBITDA exhibited a 19% growth, reaching $33.3 million.
Century Casinos’ co-chief executives, Erwin Haitzmann and Peter Hoetzinger, released a joint declaration: “After our purchase of the Nugget Casino Resort and Rocky Gap Casino Resort, including its golf course, we attained unprecedented net operating revenue and adjusted EBITDA.
“Within the quarter, singular expenses associated with the Rocky Gap purchase and the Canadian sale-leaseback agreement negatively affected our operating income and net profits.
“As we look forward, we anticipate revenue and operating cost patterns to align with those of recent quarters.”
It’s noteworthy that the firm also finalized the $59.1 million purchase of the Rocky Gap Casino Resort situated in Maryland.