Century Casinos suffers decrease in revenue and profit loss in Q1

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Net operating revenue for this quarter came to $72.4m, a decrease of 17.3% year-on-year.

Century Casinos saw a 20% rise in revenue in its US locations to $64.3m, an increase of almost $11m compared to the first quarter of 2020.

However, with its Canadian properties still shuttered as a result of the novel coronavirus (Covid-19) pandemic, revenue from that market plummeted 87.5% to $2.0m.

Its Polish properties also suffered year-on-year declines, with revenue from the country down 65.3% to $5.9m. These venues were again closed for much of the quarter due to Covid-19.

Revenue from its corporate offices and cruise ship business dropped 87.7% to $123,000.

Adjusted earnings before interest, tax, deprecation and amortisation came to $14.7m, a 52.9% increase from the prior year.

Total operating costs and expenses amounted to $64.1m, a significant decrease from expenses of $119.4m in the first quarter of 2020.

This decrease in expenses may be due to the effects of the Covid-19 pandemic, such as property closures and cost-cutting measures.

After factoring in the expenses, Century’s operating profit came to $8.2m.

However, $10.0m in non-operating expenses saw the business post a loss before tax of $1.8m.

Income taxes of $99,000, lowered the total net loss further to $1.9m.

This was improved marginally by a $484,000 share of non-controlling investments, for a total net loss of $1.4m, a significant improvement on the $45.9m loss posted in Q1 2020.

“We are pleased with the strong Adjusted EBITDA for the first quarter, driven almost exclusively by our properties in the US because our properties in Canada were closed for the entire quarter and our casinos in Poland were closed for most of the quarter,” co-chief executives Erwin Haitzmann and Peter Hoetzinger commented.

“We estimate the negative impact of these closures to Adjusted EBITDA was at least $6.7 million.

“For the third quarter in a row, we have been able to achieve high operating margins and we believe that will continue to be attainable, they said.

“We estimate the negative impact of these closures to Adjusted EBITDA was at least $6.7 million.

“We look forward to the reopening of our casinos in Poland on May 8, our casinos and racetracks reopening in Canada and to a busy summer season in North America as the pandemic subsides.”

Century Casinos reported a rise in revenue and profit in Q3 in 2020, citing its acquisition of US casino properties from Eldorado Resorts as a reason for the rise.

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