Century Casinos posts 42% Q1 revenue increase to $103.1m
Century Casinos has revealed operating revenue of $103.1m for the first quarter of 2022. This is an increase of 42% year-on-year.
The company’s earnings from operations were also up 58% from the same financial period last year, at $13m, while net earnings were up 115%.
Furthermore, adjusted EBITDA was $23.8m, a rise of 62%.
Century Casinos attributes this upturn in financial results to the easing of lockdown restrictions in its key markets, including the re-opening of properties in Canada and Poland.
The company is due to complete its acquisition of Nugget Sparks LLC, which it claims will involve $100m for 100% of the company’s membership interests.
This follows Century’s move to purchase 50% of the membership interest in Smooth Bourbon, for $95m.
The land-based operator will be hoping to make a sizeable return on investment in these acquisitions, having entered into a credit agreement with Goldman Sachs for a $350m loan.
The company’s joint CEOs, Erwin Haitzmann and Peter Hoetzinger, commented: “We are very pleased with the results of the first quarter. Revenue grew in each of our three reportable segments, with an overall growth of 42% compared to the first quarter of 2021. All of our properties are now operating with very few Covid-19 restrictions.
“We maintained the 23% adjusted EBITDA margin we had in the fourth quarter of 2021 and increased that margin by 800 basis points compared to our first quarter 2019 adjusted EBITDA margin of 15%.
“As we announced in April, we have completed the first portion of our acquisition of the Nugget Casino Resort and are excited to enter the growing Reno/Sparks Nevada market with this transaction. The addition of the Nugget is expected to grow adjusted EBITDA of our United States segment to approximately 80% of our total adjusted EBITDA.”
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