Financial results

Century Casinos posts revenue up 40% in Q1; growth expected from Nugget Casino acquisition

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.
2022-05-06
Reading time 1:43 min

Century Casinos announced Friday its financial results for the first quarter of 2022, which saw the company’s net operating revenue escalate 40.2% in a year-over-year comparison to $103.1 million during the period. The business now expects an increase in performance through the remainder of 2022, driven by recent acquisitions.

The brand’s earnings from operations were $13 million, an increase of 58% from the same period in 2021. Net earnings attributable to Century Casinos' shareholders were $0.2 million, and Adjusted EBITDA was $25.8 million, an increase of 62% from 2021. 

Along with the release of the financial report, Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos spoke about the results for Q1 2022 and said: “We are very pleased with the results of the first quarter. Revenue grew in each of our three reportable segments with an overall growth of 42% compared to the first quarter of 2021."

The company's US operations delivered most of the quarter's revenue at $65.28 million, up just 1% from 2021’s $64.37 million. Meanwhile, Canadian operations were up to $15.99 million from $2 million one year earlier; and the group’s Polish properties posted a 269% increase to $21.82 million.

Additionally, now that all properties are operating with very few COVID-19 restrictions, the company maintained the 23% Adjusted EBITDA margin that it had in the fourth quarter of 2021, and increased that margin by 800 basis points compared to a first quarter of 2019 Adjusted EBITDA margin of 15%.

As we announced in April, we have completed the first portion of our acquisition of the Nugget Casino Resort and are excited to enter the growing Reno/Sparks Nevada market with this transaction. The addition of the Nugget is expected to grow Adjusted EBITDA of our United States segment to approximately 80% of our total Adjusted EBITDA”, the co-founders concluded. 

A day after the conclusion of the first quarter of the year, on April 1, 2022, the company purchased 50% of the membership interest in Smooth Bourbon, the business that owns Nugget Casino Resort, for approximately $95 million.


Nugget Casino Resort

Pursuant to a definitive agreement and subject to approval from the Nevada Gaming Commission, the company will purchase 100% of the membership interests in Nugget Sparks for $100 million. The acquisition is expected to occur within one year. 

On the same day, the company also entered into a Credit Agreement with Goldman Sachs Bank USA, which will provide for a $350 million term loan and a $30 million revolving credit facility.

Leave your comment
Subscribe to our newsletter
Enter your email to receive the latest news
By entering your email address, you agree to Yogonet's Condiciones de uso and Privacy Policies. You understand Yogonet may use your address to send updates and marketing emails. Use the Unsubscribe link in those emails to opt out at any time.
Unsubscribe
EVENTS CALENDAR