Colorado-based Century Casinos Inc. announced its second-quarter financial earnings led by the acquisitions of Rocky Gap Casino Resort in Maryland and Nugget Sparks in Nevada.
Co-Chief Executive Officers Erwin Haitzmann and Peter Hoetzinger were pleased with Q2 results and how much the Nugget Casino Resort contributed to record revenue.
Property acquisitions help fuel Q2 earnings
In 2022, Century purchased 50% of Smooth Bourbon, LLC, for $95 million. Smooth Bourbon owns the land on which Nugget Sparks casino is located. In April, Century completed its acquisition of Nugget Sparks for $104.7 million.
In a news release, Haitzmann and Hoetzinger said:
“We believe the outlook for the Nugget is positive with record group bookings at the hotel for the second half of this year and continuing into 2024.”
Century Casino Q2 2023 Highlights
- Net operating revenue: $136.8 million, up 23%
- Earnings from operations: $18.6 million, down 10%
- Net loss: $2.0 million, down 122%
- Adjusted EBITDA: $29.3 million, down 2%
- Loss per share: $0.06
The duo also said the company is in a “transitional stage” after taking over two properties in unfamiliar gaming jurisdictions.
“We incurred additional expenses related to the acquisitions while facing inflationary cost pressures from payroll wages and benefits, insurance and utilities. We look forward to continuing growth from the Nugget and contribution to our results from Rocky Gap, our newest acquisition in Maryland.”
Expanding into Maryland
Part of the unfamiliar territory includes the Maryland casino market.
At the time, Haitzmann and Hoetzinger said they were excited about expanding into Maryland.
“Rocky Gap is a great addition to our portfolio. We look forward to working with the staff and community to continue the current success at this property into the future.”
On July 25, the company announced it had purchased Rocky Gap Casino Resort from Golden Entertainment for approximately $61.2 million.
The Maryland property includes a 25,000 square feet of gaming floor consisting of:
- 630 slot machines
- 16 table games
- 198 hotel rooms
- 5 food and beverage venues
Century owns 11 commercial casinos, including Century Casino & Hotel in Cripple Creek, CO, and Century Casino & Hotel in Edmonton, AB, Canada.