Home NewsCasino Century Casinos will be in the red by 2023 due to rising costs

Century Casinos will be in the red by 2023 due to rising costs

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Century Casinos reported a loss of 28.2m dollars (PS22.1m/EUR25.9m), as a rise in operating costs was offset by a growth in revenue.

Century’s revenue increased in all of its markets in 2023. The US operations were the main contributors to the increase. Century expanded its network in the past year by making several acquisitions.

The remaining 50% of Nugget Casino Resort in Nevada was purchased by Marnell Gaming for $100m in April 2023. Century completed its purchase of Rocky Gap Casino, Maryland, for $56.1m in July after signing the agreement July 2022.

Century has also been working on several major construction projects throughout Missouri. The new Cape Girardeau Hotel is expected to open in the next few weeks, and Caruthersville Casino and Hotel is due for completion by late 2024.

Erwin Haitzmann, Peter Hoetzinger and their co-CEOs were optimistic about Century, taking into consideration these projects, acquisitions, and the increase in revenues. The two CEOs described 2023 for Century as “transitional”, a year that will set it up to grow in 2024.

Haitzmann and Hoetzinger stated that “2023 marked a year of transition for Century”. We completed two significant acquisitions in order to increase our US portfolio from six to seven casinos.

We are looking forward to the year 2025 when we will fully integrate our recently acquired casinos into our company. This is our first full-year since 2022 without significant disruptions due to construction and renovations.

US revenues to jump 41.7% by 2023

Century’s top source of revenue in 2023 will be the US. The acquisition of two casinos helped to increase revenue in the US by 41.7%, reaching $380.6m.

Century has also seen growth north of the border in Canada. Revenues here have risen 5.3% on an annual basis to $75.4m. Century has four venues in Canada.

In Europe, revenues from Poland operations increased by 4.3%. They reached $94.1m. The three Polish casinos were closed in Q4 due to unanticipated delays in licensing.

Century secured the three Polish licenses and reopened one of its casinos last month. A second casino is scheduled to open before March’s end. In Q3, the third casino will open in a brand new location.

Other and corporate revenues were $61,000, down by 70.4% on a year-on-year basis.

Costs rise, impacting bottom line

In terms of spending in 2023, the total operating costs amounted at $487.3m. This represents a 33.1% increase. The non-operating cost for 2023 was also higher by 42.7% at $87.9m.

In 2022, the company made a profit of $6.0m. Century reported $5.3m of tax benefits, but also a loss of $9.7m from non-controlling asset.

The net result was a loss of 28.2m dollars, as opposed to a profit of $8.0m the year before. EBITDAR increased by 10.4% in 2023, to $114.0m.

The same story is expected in the Q4

The results for the last quarter of the calendar year were similar. The revenue increased by 38.5%, to $143.8m.

Century also reported solid growth in the US and Canada, with both countries reporting increases of 36.6% (in US) and 51.4% (in Canada). The same cannot be said about Poland where licensing problems and closures led to a revenue drop of 71.1%. Century also reported that its corporate and other activity revenue dropped by $3.3m.

Operating costs rose 44.0%, to $131.2m. Non-operating expenses also increased 52.4%, to $25m. The pre-tax losses were $12.4m compared with $2.6m for 2022.

Century realized $4.0m of income tax savings, but it also suffered a loss of $2.4m from non-controlling asset. This left a net loss of $10,8m. That’s more than twice the $4,000m from last year, and is in line with predictions made in July.

EBITDAR was also better than the previous year. It was up 17.1% at $25.4m.

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