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Century Casinos Q4 2023 earnings report was a mixed bag of growth in some areas and decline in others. The company, which runs casinos in the US and abroad, saw its net operating revenue increase quarterly and yearly, but earnings from operations dipped.
Analyzing Century Casinos’ 2023 earnings report
Century Casinos owns seven casinos in the United States and is building two more:
- Rocky Gap Casino, Resort & Golf (Maryland)
- Nugget Casino Resort (Nevada)
- Mountaineer Casino, Resort & Races (West Virginia)
- Century Casino Cape Girardeau (Missouri)
- Century Casino & Hotel Caruthersville (Missouri)
- Century Casino & Hotel Cripple Creek (Colorado)
- Century Casino & Hotel Central City (Colorado)
Additionally, the company is building a 69-room hotel for its Cape Girardeau casino and a new casino and hotel in Caruthersville, Missouri.
It also operates casinos in Canada and Poland.
The company has a lot going on in the US and beyond between its existing properties and its construction projects. The former brings in revenue and the latter cuts into that revenue.
Quarterly net operating revenue up 39% overall, strong in US and Canada
The company generated $143.8 million in net operating revenue in Q4 2023, which was 39% higher than the $103.8 million in net operating revenue it totaled in Q4 2022. The company’s US operations drove the company’s net operating gains, jumping 65% compared to Q4 2022.
Candian net operating revenue was up 17%. The company’s net operating revenue from its properties in Poland was down 13%.
Century CEOs Erwin Haitzmann and Peter Hoetzinger attributed Century’s Q4 Poland struggles to delayed licenses: “Unanticipated licensing delays that resulted in closures of three of our casinos in Poland in the fourth quarter caused earnings from operations in Poland to decrease compared to 2022,” the pair said in a Century Casinos press release.
That downward trend in Poland should resolve itself by the spring. The CEOs noted that the regulators have awarded Century with all three licenses. One of the casinos reopened in February, one is on track to open this month, and the third casino should open its doors once more by Q3.
Annual operating income was positive across all three countries where Century operates
Century’s US numbers remained strong year-over-year, up 42% from $268.6 million in FY 2022 to $380.6 million in FY 2023.
Canada saw a 5% increase in annual net operating income, while Poland posted a 4% increase despite its lagging Q4 numbers.
Annual and quarterly earnings stumble
Earnings from operations for Century Casinos (NASDAQ: CNTY) (net revenue with additional operating deduction) were down $1.2 million for the quarter and 5% for the year.
The company’s struggles to boost its earnings were due, in large part, to its troubles in Poland as well as noticeable losses at the corporate level.
Century Casinos hopes to break bad luck by 2025
Haitzmann and Hoetzinger said the company has dealt with myriad disruptions since 2022 and that it should see a full bounce-back from those issues by 2025.
“We are excited to look forward to 2025 when our newly acquired casinos are fully integrated into the company and to what we anticipate will be our first year since 2022 with no significant construction or renovation disruptions at our properties,” they said.
