Century Casinos has released its financial results for the quarter ending June 30, showcasing impressive growth in net operating revenue, which reached $136.8 million—an increase of 23% compared to the same period last year. While the company experienced a 10% decrease in earnings, reporting $18.6 million, the co-CEOs, Erwin Haitzmann and Peter Hoetzinger, expressed satisfaction with the overall results, highlighting the positive impact of the Nugget Casino Resort acquisition.
Financial Highlights:
Net operating revenue surged by 23% to reach $136.8 million in Q2 2023.
Earnings showed a 10% decrease, totaling $18.6 million for the same period.
The net loss for Q2 was $2 million, reflecting a 122% decrease compared to Q2 2022.
Adjusted EBITDA for the quarter saw a marginal dip of 2%, amounting to $29.3 million.
Co-CEO Statements:
Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos, expressed their contentment with the quarter’s results. They highlighted the record-breaking revenue, attributing it to the inclusion of the Nugget Casino Resort. However, they acknowledged construction disruptions at their Missouri properties, which partly offset the positive impact.
Challenges and Opportunities:
The co-CEOs acknowledged the transitional stage of taking over two properties in new gaming jurisdictions and the associated expenses related to acquisitions. They mentioned additional costs incurred amid inflationary pressures on payroll wages, benefits, insurance, and utilities. Despite these challenges, Century Casinos is optimistic about the outlook for the Nugget, with record group bookings and positive momentum expected in the second half of 2023 and beyond.
Strategic Acquisitions:
In July, Century Casinos successfully completed its acquisition of the operations of Rocky Gap Casino Resort in Flintstone, Maryland, for $61.2 million, subject to certain adjustments. This strategic move was complemented by VICI Properties acquiring a related interest in the land and building associated with Rocky Gap for approximately $203.9 million. Century Casinos also amended its triple net master lease agreement with VICI Properties’ subsidiaries to include the Rocky Gap property.
Future Growth Prospects:
Looking ahead, the co-CEOs anticipate continued growth from the Nugget and contributions to their results from Rocky Gap, the company’s latest acquisition in Maryland. The focus remains on navigating the transitional phase, optimizing the newly acquired properties, and leveraging positive market dynamics.
Century Casinos’ robust Q2 performance, marked by record revenue and strategic acquisitions, positions the company for sustained growth. Despite facing transitional challenges and inflationary pressures, the management expresses confidence in the positive trajectory, underscoring the strategic importance of acquisitions like the Nugget and Rocky Gap in shaping the company’s future.