Century Casinos has posted net operating revenue up by 23% for the second quarter of the year, reaching $136.8 million and driven by the recent acquisition of Nevada's Nugget Casino. However, earnings from operations were $18.6 million, down 10% from the prior year.
Most of Century’s revenue for the quarter came from its US operations, which continue growing their footprint and amounted to $94.4 million. Poland, where Century holds a 66.6% ownership interest in operator Casinos Poland, placed second at $23.5 million. Century Casinos’ Canadian operations contributed $18.8 million to the mix.
"We are pleased with the results of this quarter, generating record revenue due to the addition of the Nugget Casino Resort, partially offset by construction disruption at our Missouri properties. We believe the outlook for the Nugget is positive with record group bookings at the hotel for the second half of this year and continuing into 2024," Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked.
"We are in a transitional stage taking over two properties in gaming jurisdictions new to us, and we incurred additional expenses related to the acquisitions while facing inflationary cost pressures from payroll wages and benefits, insurance, and utilities. We look forward to continuing growth from the Nugget and contribution to our results from Rocky Gap, our newest acquisition in Maryland," Haitzmann and Hoetzinger concluded.
Co-CEOs Peter Hoetzinger and Erwin Haitzmann
During the period, Century Casinos committed to two major transactions. In May, the business entered into a definitive agreement for Vici Properties to acquire the real estate assets of four casinos it operates in the Canadian province of Alberta.
The agreement was entered for an aggregate purchase price of CAD 221.7 million ($167.3 million) in cash. The prince includes CAD 192.3 million ($142.6 million) to be paid to subsidiaries of Century Casinos and approximately CAD 29.4 million ($21.8 million) to acquire the fee simple real estate interest in Century Downs from the owner of such interest. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the third quarter of 2023.
Nugget Casino Resort in Reno-Sparks, Nevada
In April, the company completed the acquisition of the operations of the Nugget Casino Resort in Reno-Sparks, Nevada, from Marnell Gaming, for approximately $104.7 million, with an additional 50% share in Smooth Bourbon purchased for $95 million only a few days before.