Century Casinos recently released their financial results for the first quarter ended March 31, showcasing significant revenue growth despite operational hurdles.
Revenue Performance and Geographic Segments
Century Casinos reported a robust 25% increase in net operating revenue, amounting to $136 million compared to the same period last year. This growth was driven by a notable 45% increase in revenue from US operations, reaching $96 million. In contrast, Canadian revenue saw a more modest 11% rise to $18.3 million, while Poland experienced a 15% decline down to $21.6 million. The segment labeled as ‘Corporate and Other’ saw a substantial decrease of 77% to $13,000.
Operational Challenges and Financial Metrics
Despite the strong revenue growth, the company faced several challenges during the quarter. Earnings from operations fell by 55% to $8.3 million, and there was a significant increase of 990% in net loss attributable to shareholders, totaling $13.5 million. The net loss itself grew by 485% to $11.7 million, highlighting financial strains exacerbated by operational disruptions. Adjusted EBITDAR decreased by 18% to $21.3 million, reflecting ongoing operational challenges and external factors impacting profitability.
Key Insights from Management
Co-CEOs Erwin Haitzmann and Peter Hoetzinger acknowledged the anticipated difficulties in the first quarter. They attributed these challenges to ongoing construction disruptions and the closure of three casinos in Poland for part or all of the quarter. Severe weather conditions also disrupted operations across the majority of their US casinos, further impacting performance.
Looking ahead, the management remains optimistic about the company’s prospects, particularly in the second half of 2024 and into 2025. They expect capital expenditures on various projects to conclude by summer, alleviating some of the financial pressures. Of particular note is the completion of their largest project, a land-based casino in Caruthersville, Missouri, funded entirely by VICI Properties Inc., anticipated by year-end.
Strategic Investments and Future Outlook
Despite the current challenges, Century Casinos is strategically investing in capital projects across their properties. They anticipate a return to full operational capacity in Poland by 2025, which is expected to bolster revenue streams significantly. The recent performance of The Riverview, their new hotel at Century Casino Cape Girardeau, Missouri, has exceeded expectations, providing a positive indicator for future growth.
Century Casinos’ first-quarter financial results highlight both opportunities and challenges. While revenue growth has been strong, operational disruptions and increased financial losses have posed significant hurdles. However, with strategic investments nearing completion and optimistic outlooks for operational stability in key markets, the company remains poised for recovery and sustained growth moving forward.