Century Casinos reports Q1 revenue growth across Edmonton locations
The easing of COVID-19 restrictions has been attributed as a factor by the group
Century Casinos has published its financial results for the three months ended Mar. 31, with the Colorado-based firm reporting a 5.2% (year-on-year) increase in net operating revenue.
During the first quarter of 2023, the group’s net operating revenue was recorded at CAD$146.48m, up from $139.18m in the same period last year.
The majority of this revenue hailed from its US segment, but Century Casinos’ Canadian segment also generated $22.4m of the final figure, an increase of 1.2% ($2.1m) on Q1 2022, driven primarily by an 18.8% ($2.6m) increase in Edmonton, where it has three reporting units – Century Casino & Hotel (Edmonton), Century Casino St. Albert, and Century Mile Racetrack and Casino.
However, Century Casinos’ Calgary division – Century Downs Racetrack and Casino – reported net operating revenue of $6.2m, down 7.5% ($0.5m) on last year.
Meanwhile, operating costs and expenses in Edmonton came to $12.4m in Q1, up 10.7% ($1.2m) YoY, with Calgary’s down 25% ($1m) to $3m, contributing to overall Canadian operating costs and expenses of $15.4m, up 1.3% ($0.2m) YoY.
The revenue increase at all of the group’s Edmonton locations was attributed to the lifting of COVID-19 restrictions, with customers required to provide proof of vaccination, a negative rapid test result or an original medical exemption letter for entry to comply with a government mandate last year.
Operating costs and expenses at Edmonton increased due to ‘increased payroll and marketing costs and cost of goods sold’, according to Century Casinos.
Looking at its Calgary casino, the firm cited the opening of a competitor close to its base last November as a factor in the 5.3% decline of its gaming revenue.
Important to factor in too, is the February 2022 sale of the land and building Century Casinos owned in Calgary, where it transferred the lease agreement for the casino premises to the buyer and ceased operating Century Sports, a sports bar, bowling and entertainment facility located on the property. Prior to the $8m sale, Century Sports was included in the Calgary operating segment.
In March, the group also received an earn out payment of $0.8m related to the 2020 sale of its Calgary casino operations.
Elsewhere, Century Casinos noted the temporary increase from 15% of slot machine net sales retained by casinos to 17% approved by the AGLC earlier this year, effective from Apr. 1 through Mar, 31, 2025.
“The increase in the slot machine net sales retention percentage is expected to have a positive impact on net operating revenue and results of operations at our Canadian properties,” the firm added.