Century Casinos sees net operating revenue up 7% in Q2, earnings dip to $14.3M

Century Casinos has released its financial results for the second quarter of 2024. While the company acknowledged difficulties during the period, net operating revenue saw an increase of 7% from the same period in 2023, reaching $146.4 million. The operator's US and Canada assets saw increases, while Poland posted a 15% decrease.  

However, overall earnings from operations witnessed a drop of 23%, amounting to $14.3 million. Moreover, the net loss attributable to Century Casinos shareholders widened to ($41.5) million; and Adjusted EBITDAR also saw a decrease compared to the same period last year, down 6% to $27.4 million. 

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said: "Results for the second quarter of 2024 were impacted by a valuation allowance on our US deferred tax assets, a disappointing performance at the Nugget Casino Resort as well as temporary closures of two casinos in Poland. The Nugget has undergone a leadership change and is implementing right-sizing and cost-cutting initiatives to improve its performance.

"We have completed the majority of our elevated capital expenditure projects and are projecting total capital expenditures to be approximately $12.6 million for the remainder of 2024 and $12.0 million in 2025."

Erwin Haitzmann and Peter Hoetzinger

Century Casinos also provided updates on projects, including a new land-based casino in Caruthersville, Missouri, where construction began in December 2022 and is expected to open in late 2024. The company is funding it through VICI Properties, which will own the real estate improvements associated with the casino upon completion. 

Officials for the company said the casino will increase gaming positions and hotel rooms in Caruthersville by approximately 50% upon its opening.

In Poland, renovations on the new casino location in Wroclaw continue, and the company expects to open the casino in October 2024. The company closed its Krakow casino in May 2024 and its LIM Center casino in Warsaw in July 2024 due to the expiration of the license at each location. The company applied for renewals at both sites before their expirations. However, there can be "no assurance" that such licenses will be received, Century said.

As of June 30, 2024, Century Casinos had $123.2 million in cash and cash equivalents, compared to $171.3 million at the end of 2023. Outstanding debt totaled $339.5 million, including obligations under the Goldman Credit Agreement and the Master Lease.