Canada: Century Casinos sells Calgary casino land and sports bar for $6.5M

Casino entertainment company Century Casinos has entered into a definitive agreement to sell land and a building in Calgary, the business announced on Thursday. Company subsidiary Century Resorts Alberta entered the agreement on Wednesday, which implies selling the land and building it owns in Calgary, Canada, to Rowanwood Financial Properties.

The deal is valued at CAD 8.1 million ($6.5 million). The buyer has paid CAD 0.7 million ($0.5 million) related to the sale, while the remaining CAD 7.4 million ($5.9 million) will be paid upon closing, subject to adjustments for property taxes and other revenues and expenses relating to the property. The transaction is expected to close within 30 days.

On December 1, 2020, Century Resorts Alberta sold the casino operations of Century Casino Calgary located on the property and leased the portion of the property containing the casino premises to the purchaser. Calgary accounted for 7% of Century Casinos’ net operating revenue in 2020, prior to the sale.

The Century Resorts subsidiary continues to operate Century Sports, a sports bar, bowling and entertainment facility located on a portion of the property. Upon closing, Century Resorts Alberta will stop operating the facility and will transfer the lease agreement for the casino premises to the buyer.

Nasdaq-listed Century Casinos owns and operates properties in Cripple Creek and Central City, Colorado, where it is based. It also owns and operates venues in Missouri and West Virginia in the US, and Alberta, in Canada.

Moreover, through its Austrian subsidiary CRM, the company holds a 66.6% ownership interest in Casinos Poland Ltd., owner and operator of eight casinos throughout Poland; and has a 75% ownership interest in Century Downs Racetrack and Casino in Calgary.

The company reported a 202.7% year-on-year increase in net profit in Q3 2021, with revenue amounting to $116.6 million up from $95.7 million in the same period the prior year. US casinos remained the primary source of income, at $73.9 million, while Canadian revenue climbed 28.9% to $21.4 million. Polish revenue followed at $21.2 million, up 30.1%.

“In the third quarter, we achieved outstanding results,” Century’s co-chief executives Erwin Heitzmann and Peter Hoetzinger said in November. “We achieved our highest quarterly net operating revenue and adjusted EBITDA in the company’s history and a consolidated adjusted EBITDA margin of 28.3%.”