Century Casinos posts record revenue despite 96.3% profit drop
Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos said revenue was bolstered by the purchase of Nugget Casino Resort.
“We are pleased with the results of this quarter, generating record revenue due to the addition of the Nugget Casino Resort,” said Haitzmann and Hoetzinger.
Century completed its acquisition of Nugget in April, just as the second quarter began, for a total of $104.7m.
However, the pair noted that the revenue had been “partially offset” by “construction disruption” at Century’s Missouri property. The plans for this property were announced in December 2022.
Following the quarter’s end, in July Century Casinos completed its acquisition of Maryland’s Rocky Gap Casino Resort. The deal was first announced in August this year.
Net profit sinks in Q2
Looking at the second quarter revenue by location, much of it came from Century’s US operations, which totalled at $94.4m. Operations in Poland accounted for $23.5m, while corporate and other revenue was $4,000.
Century Casinos holds a 66.6% stake in Casinos Poland, which operates eight casinos in the country. These include locations in Warsaw, Wrocław and Łódź.
Canadian revenue was $18.8m, a decline of 1.0%. During the quarter, Vici Properties purchased Century Casinos’ entire Canadian portfolio. This consisted of Century Casino and Hotel Edmonton, Century Casino St Albert, Century Mile Racetrack and Casino and Century Downs.
Total operating costs came to $118.1m, a rise of 29.3%. Following earnings from equity investment at $30,000 the operating profit hit $18.6m, a decrease of 10.4%.
Non-operating expenses totalled at $18.1m. This brought the pre-tax profit to $459,000.
Tax was $96,000 for the quarter. This contrasts significantly with the tax benefit of $10.4m obtained in Q2 2022.
In total, the net profit for the quarter was $363,000, a staggering 96.3% drop year-on-year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter was $29.2m, down by 1.2%.
Half-year revenue spikes 14.5%
Revenue for the six months to 30 June added up to $245.2m, a rise of 14.5% compared to the same period in 2022.
Again, much of this – $160.7m – was made in the US. Revenue from Poland was $49.0m, while revenue from Canada was $35.3m.
Operating costs and expenses for the six months were $209.3m, up by 15.3%.
After earnings from equity investment at $1.1m, the operating profit stands at $37.0m. Non operating expenses hit $31.9m, leaving the pre-tax profit at $5.1m for the period.
Total taxes of $1.7m mean that the current net profit is $3.3m for the year so far, a fall of 73.0%.
Adjusted EBITDA for the six months was $55.3m.