Century Casinos experienced a mixed second quarter, characterized by both positive and negative developments. Although their income increased significantly by 23% due to the recent incorporation of Nugget Sparks, their earnings unfortunately declined.
Here’s a concise summary:
* Total revenue reached $1.37 billion
* Operational earnings decreased by 10% to $18.6 million
* The company reported a net loss of $2 million, a sharp difference from the $8 million gain they had in the same period last year.
The executive team, Erwin Haitzmann and Peter Hoetzinger, expressed continued confidence. They emphasized Nugget’s robust reservations, especially for group functions, which are already at unprecedented levels for the remainder of 2023 and into 2024. It appears they are relying on this acquisition to yield substantial returns in the foreseeable future.
Century Casinos experienced a remarkable three-month period, achieving record-breaking income largely due to the incorporation of the Nugget Casino Resort. This upward trajectory was marginally counterbalanced by ongoing modernization efforts at the company’s Missouri venues, particularly the Heights and Hermann sites.
Regarding development, Century Casinos is also diligently assimilating two recently acquired establishments in thriving gaming sectors. This enlargement, combined with inflationary impacts on salaries, compensation packages, and utilities, signifies the company is encountering some heightened expenses in the near future.
Century Casinos demonstrated its proactive deal-making this quarter. In a notable transaction, the enterprise divested its four Canadian holdings to Vici Properties for $221.7 million Canadian (roughly $167.3 million USD). These properties, situated in Alberta, encompassed the Century Casino & Hotel in Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.
The corporation also concluded an agreement to bring the Nugget Sparks Casino into its portfolio for a substantial $1.047 billion and secured a 50% interest in Smooth Bourbon for $95 million. Furthermore, just before the quarter’s end, the company finalized the purchase of the Rocky Gap Casino Resort in Flintstone, Maryland for $61.2 million.
Just ahead of the company’s quarterly earnings announcement, shares were trading at $7.93.
