Century Casinos completes Casinos Poland purchase

CPL is the owner and operator of eight casinos throughout Poland with a total of 317 slot machines and 77 gaming tables. As of the nine months ended September 30, 2012, CPL had a 43% share of the Polish casino market and is currently participating in other pending license applications.

For the year ended December 31, 2012, CPL recorded net operating revenue of us$ 44 million, EBITDA of us$ 4.5 million and net income of us$ 1.3 million.

"We are very pleased with the closing of this transaction, which represents another milestone in our company’s history by significantly increasing our scale and diversity. We expect this acquisition to be immediately accretive and are very excited about the growth potential it brings for our company,” said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. “The “Casinos Poland” brand is exceptionally strong as demonstrated by a market share that consistently has been between 40% and 50% in recent years” they continued.

As of today, Century Casinos will begin consolidating CPL as a majority-owned subsidiary with a controlling financial interest. The Company will account for and report the 33.3% owned by CPL’s co-shareholder, State-owned Polish Airports, as a non-controlling financial interest. Consolidation of CPL will increase the company’s overall net operating revenue and operating costs and expense; the firm previously reported its interest in CPL under the equity method.

The purchase price of the investment was approximately us$ 6.8 million, financed with borrowings under the company's Bank of Montreal Credit Agreement.