Century Casinos Registered Double-Digit Revenue Growth in 2022
The decrease in revenue from US operations could raise concerns if it continues in the subsequent quarters
Gaming and hospitality operator Century Casinos released today its fourth quarter and full year 2022 financial report, posting increases in revenue and EBITDA despite the decline from US operations.
Net Operating Revenue, Adjusted EBITDA
Net operating revenue for the three months ended December 31, 2022, was $103.75 million, down 3% from $107.3 million registered in the fourth quarter of 2021, mainly due to the decline of 9% in revenue from US operations that could not be offset by the increase in Poland. Revenue from operations in Canada remained almost unchanged.
For the full-year 2022, net operating revenue posted an increase of 11% to $430.53 million ($388.5 million in 2021) due to the significant increase in Canada (54%, to $71.57 million) and Poland (55% to $58.23 million) was more than enough to offset the 5% decrease in the US to $268.58 million.
“We finished 2022 with record net operating revenue and Adjusted EBITDA despite disruptions and temporary closures at our Caruthersville property due to low water levels in the Mississippi River,” wrote co-chief executive officers of Century Casinos, Erwin Haitzmann and Peter Hoetzinger.
Century Casinos reported a 16% decrease in earnings from operations for the quarter and a 1% decrease for the full year. In both readings, the consolidated result was driven down by the company’s US performance which recorded decreases of 31% in Q4 and 21% for the year. Earnings from operations in Canada and Poland increased by 20% and 22% in the quarter, and 153% and 2178% for the year but nominally these results were too small compared to the US.
Adjusted EBITDA for the quarter was down 13%, to $21.67 million, and up 6%, to $103.34 million, for the year. The main component influencing both results was the operations in the US but the increases in Canada and Poland, together with the significant drop in the company’s Corporate division, were more than enough to lead to a positive full-year EBITDA reading.
Developments in Missouri and Nevada
“In December 2022, we completed the relocation of the Caruthersville casino from the riverboat and barge to the land-based pavilion where we will operate the casino until the casino and hotel development project is complete,” continued Haitzmann and Hoetzinger in their comments.
Experiential real estate investment trust (REIT) VICI Properties agreed to provide the funds for the new casino project comprising a casino and 38-room hotel tower in Caruthersville, Missouri, in exchange for ownership of the real estate improvements and rent increase under the master lease once the property is operational.
Another important development mentioned by the co-CEOs was the unanimous recommendation of the Nevada Gaming Control Board to the Nevada Gaming Commission to approve the company’s application for the acquisition of the Nugget Casino Resort.
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