Century Casinos sees revenue drop 3% in Q3, launches new Missouri and Poland casinos

Century Casinos has reported its third-quarter financial results, with the three-month period showing a 3% drop in net operating revenue, down to $155.7 million compared to Q3 2023. However, the company saw a 24% rise in earnings from operations, reaching $17.9 million. Despite challenges, the company pushed forward with major openings in Missouri and Poland.

On November 1, Century Casinos launched its new land-based casino and hotel in Caruthersville, Missouri, a project valued at approximately $51.9 million. The new facility offers 599 slot machines and nine live tables, a 50% increase in gaming positions compared to the temporary casino location, a restaurant, a bar, and a total of 74 hotel rooms.

Funded through real estate owner and financier VICI Properties Inc., which owns the real estate improvements associated with the Caruthersville casino, the new facility is replacing the old casino that’s been on the river for nearly 30 years.

Co-CEOs Erwin Haitzmann and Peter Hoetzinger emphasized the potential of the new property to tap into broader regional markets. “We are excited for the potential of this new casino and hotel to expand our customer base further into Arkansas and the north Memphis area of Tennessee,” they stated.

In addition, Century Casinos has re-established its presence in Wroclaw, Poland, with the reopening of its casino on October 24, relocated to a new facility. However, the company faced setbacks in other areas of its Polish operations. It was recently notified that it did not secure new licenses for its Krakow and Warsaw (LIM Center) locations, which may affect revenue from the Polish market moving forward.

Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) for the quarter slightly declined by 1%, totaling $32.9 million. Net loss attributable to shareholders was reduced by 43%, registering at $8.1 million, compared to a net loss of $14.2 million in the previous year’s third quarter. This translated to a basic net loss per share of $0.26, down from $0.47 in Q3 2023.

The U.S. segment continued to contribute substantially, with a 15% increase in revenue over the nine months ending September 30, totaling $319.7 million. However, the company’s Polish operations experienced a 22% revenue decline during the same period, reflecting both licensing issues and market conditions. Revenue in Canada also saw a marginal 3% decrease in Q3, amounting to $20.3 million.

Despite the challenges, Haitzmann and Hoetzinger expressed satisfaction with the company’s overall progress, particularly in North America, which showed resilience. Canada reported an 83% year-over-year rise in quarterly earnings from operations, reaching $3.8 million.

The company’s balance sheet shows a decrease in cash reserves, from $171.3 million at the end of 2023 to $118.8 million as of September 30, 2024, largely due to tax obligations and property investments. Century Casinos’ debt was reported at $339.6 million, with long-term financing commitments amounting to $657.4 million under its master lease.

Century Casinos aims to leverage its expanded footprint in Missouri and the stabilized operations in Poland to drive growth and reduce disruptions. However, the ongoing uncertainties in its Polish operations could impact future performance, while the Caruthersville expansion underscores its commitment to growth in the U.S.