Century Casinos Plots Further U.S. Expansion After Record Growth
By Tom Nightingale
November 10, 2020
Century Casinos, which is headquartered in Colorado but runs properties in Alberta, announced quarterly record growth for the third quarter of 2020 despite COVID-19. It credits its acquisition of U.S. casino properties from Eldorado Resorts for the spike in revenue and profit, and hinted at the potential for further expansion south of the border.
Century's net operating revenue for the three months up to September 30, 2020 climbed to $95.7m, an 80.7% increase from $52.9m in the corresponding period last year and an overall quarterly record for the operator.
Since Q3 of last year, Century has added numerous casinos to its portfolio, including the Isle Casino Cape Girardeau, Lady Luck Caruthersville, and the Mountaineer Casino, Racetrack and Resort from the former Eldorado, prior to thatoperator completing its merger with Caesars Entertainment. This expansion saw revenue skyrocket by 580.4% from $9.2m in Q3 of 2019 to $62.6m this year.
However, in Canada, where it operates several casinos and racetracks, revenue dropped by 24.9% to $16.6m. Year-to-date, Canadian net operating revenue fell by 37.9% to $37.5m.
On Aug. 5, Century sold the casino operations of Century Casino Calgary to 2267166 Alberta Ltd. for $7.5 million, plus a three-year quarterly earnout. After Q3's record results in the U.S., the company's chief hinted it may look to sell more non-U.S. assets and invest more in the States instead.
CEO Peter Hoetzinger said on a recent conference call that the company will probably look to sell the Century Calgary’s real estate. He added that the company's European operations had shifted to “non-core” importance compared with U.S. investments.
Aside from revenue, Century's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached a record $22.2m in Q3, up by 212.7% on 2019.
“We are very pleased to report all-time records in quarterly net operating revenue and adjusted EBITDA driven by our recent acquisition of the Eldorado properties,” Century co-chief executives Erwin Haitzmann and Peter Hoetzinger said. “The record results confirm the transformational nature the acquisition has had on the company, with 79% of our adjusted EBITDA coming from operations in the US.”
Total operating expenses for Q3 were $80.7m, up 63.0%. After including $10.6m in non-operating expenses, this left a $4.4m profit before tax, double the amount posted last year.