Century Casinos revenue down by 4% in Q3 due to tough comparatives, increased inflation and expenses
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Century Casinos announced Friday its financial results for the third quarter of 2022. The company reporteda 4% decrease in its net operating revenue in a year-over-year comparison to $112,6 million.
The firm's earnings from operations were $20 million, a decrease of 22% from the same period in 2021. Net earnings attributable to Century Casinos' shareholders were down74% to $2.9 million; and Adjusted EBITDA was $298.1 million, a decrease of 15% from 2021.
In a press release, Erwin Haitzmann, and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked: "Net operating revenue and Adjusted EBITDA decreased in the third quarter of 2022 compared to 2021. The decreases were due, in part, to our record results in 2021 (driven by reduced COVID-19 restrictions in Missouri) as well as some impact from inflation and additional expenses related to the riverboat in Caruthersville due to low water levels in the Mississippi River."
The company's US operations delivered most of the quarter's revenue at $70.7 million, down from 2021’s $73.8 million. Canadian operations were down to $20 million from $21.3 million one year earlier; meanwhile, the group’s Polish properties also saw a slight increase to $21.7 million from $21.1 million in the same period last year.
In October, the Missouri Gaming Commission approved the relocation of the casino at Century Casino Caruthersville from the riverboat and the barge to a land-based pavilion until the new land-based casino and hotel are completed. Earlier that month the casino had to be closed as it was no longer accessible from the barge because of the record low water levels in the Mississippi River. Since then, Caruthersville has operated the casino from the barge with 299 slot machines and four table games.
According to the company, the pavilion will provide easier access to the casino for customers, and the group anticipates it will bring operating efficiencies and cost savings. The casino will be smaller with approximately 400 slot machines and seven table games, compared to 519 slot machines and seven table games on the riverboat and barge.
Caruthersville will continue to operate from the barge until the move to the pavilion is complete. The company anticipates the relocation will be completed by the end of 2022 and that there will be no negative impact on the results of operations thereafter.
During the quarter, the company also announced it has entered into a definitive agreement to acquire Rocky Gap Casino Resort operations. "We are excited to enter the Maryland market and to add this property to our growing US portfolio," the Co-Chief Executive Officers stated in their Q3 remarks.
