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Colorado-based Century Casinos missed analysts’ estimates after posting fourth-quarter results earlier in the month. In the last three months of 2022, the casino operator said it lost 14 cents a share on revenue of $103.8 million.
Wall Street Analysts expected a profit of 2 cents on sales of $104.2 million. However, compared to December 2021, net operating revenue was $430.5 million, an increase of 11%.
During its Q4 earnings call, Century Casinos also provided updates on its Missouri casinos and projects in Nevada. Other Q4 highlights include:
- Net operating revenue: $103.8 million, a decrease of (3%)
- Earnings from operations: $13.8 million, a decrease of (16%)
- Adjusted EBITDA: $21.7 million, a decrease of (13%)
- The loss per share was ($0.14)
Missouri casinos have a finish date
Despite disruptions and temporary closures at the company’s Caruthersville property, co-CEOs Erwin Haitzmann and Peter Hoetzinger said there were some positives for the quarter.
“We finished 2022 with record-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and net operating revenue.”
Additionally, the company provided an update on its two Missouri casinos in Cape Girardeau and Caruthersville. According to Century, the riverboat to land-based transfer is finished, and the properties are scheduled to be completed in 2024.
Century Casinos entering the Nevada gaming market
Haitzmann and Hoetzinger also provided some news regarding the company’s $195 million acquisition of the Nugget Sparks Casino in Nevada.
The company said the Nevada Gaming Control Board (NGCB) recently recommended that the Nevada Gaming Commission (NGC) sign off on the purchase. “Our application must still be approved by the Gaming Commission in Nevada at its meeting on March 23,” Hoetzinger said.
“If approved, we plan to close the market acquisition in the first week of April, less than 4 weeks from today. We are finalizing our plans for initial investments and upgrades, and I’m more excited than ever about the potential for improvements.”
In February, Century Casinos agreed to pay $100 million to Marnell Gaming for Nugget Sparks. Century Casinos will pay an additional $95 million for half of Smooth Bourbon. Smooth Bourbon is the real estate entity that owns the gaming venue.
In a statement following the purchase announcement, Haitzmann and Hoetzinger said: “We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We believe there is a lot of upside to this transaction.”
