Century Casinos has reported a jump in operating revenue of 19 per cent as its third quarter revenue hit $41m.
The Canadian-based operator said its earnings from operations were $4.8m, an increase of 25 per cent from the three months ended September 30, 2016.
The group’s casinos in Poland generated 30 per cent of Century’s total GGR and 16 per cent of its EBITDA whilst its operations in Colorado contributed 22 per cent of its consolidated revenue and 28 per cent of its consolidated EBITDA.
Peter Hoetzinger, Vice Chairman of the Board, President and Co-Chief Executive Officer, said: “Looking at the Canadian results in more detail, our largest property Century Casino & Hotel-Edmonton, offering 822 gaming machines and 35 gaming tables showed a revenue increase of two per cent, EBITA grew by 17 per cent, EBITDA margin jumped from 32 per cent to 36 per cent. Century Casino St. Albert also located in the great Edmonton area had a very good quarter too. The EBITDA margin increased to 34 per cent.
“We’re starting to see substantial synergy effect between these two properties in the great Edmonton market, planned and we made the acquisition a year ago,” he added. “In the Calgary market, our essential our Century balance rate for casino increased net operating revenue by nine per cent slot coin in was up 20 per cent and EBITDA grew by two per cent. We started thoroughbred racing in September and it is very successful for us. It draws large audiences; it drives more revenue, on the gaming floor, in the restaurants and at the betting shops. The result of our other property in that market essential Casino Calgary, are also very encouraging. Revenue increased by 22 per cent, EBITDA almost got throughput. The operations in Colorado showed a solid performance with revenues up 10 per cent and adjusted EBITDA 19 per cent and both properties gaining share in their respective markets.
“In fact, the Century Casino & Hotel in Cripple Creek, serving mainly Colorado Springs market achieved the EBITDA performance in ten years. The Century City property catering to the greater Denver area increased revenues by eight per cent primarily driven by a new acquired and newly developed high limit players proving our market investment policies have been well spent earlier in the year.”
In Europe, Century’s casinos in Poland generated 30 per cent of the company’s total and 16 per cent of the EBITDA.
Mr. Hoetzinger said: “This quarter the Poland revenue was up eight per cent, slot machine revenue was up 33 per cent but the lower whole percentage on the table games 19 per cent this quarter versus 23 per cent of last year reduced the overall revenue growth to eight per cent.
“We achieved this revenue growth even though we had less casinos in operations compared to last year as the license of the two locations expired. We already reapplied, and we already have been ranked first in these kind of procedures, plus also in a third one. We anticipate these three additional casinos to be operational for us within six months from now.”
“Our new casino in Poland the Hilton Hotel in Warsaw is performing very well. Revenues stand steadily since opening in early June. They increased from June to July by 40 per cent, from July to August by been nine per cent and from August to September by another 43 per cent.”
Outside of its two main markets, Century announced that, together with the owner of the Hamilton Princess Hotel & Beach Club in Hamilton, Bermuda, it had submitted a license application to the Bermudan government for a casino at the Hamilton Princess Hotel & Beach Club. The Bermudan government will issue a provisional casino license as the next step in the application process. The conditions of the provisional casino license must be agreed upon by the Bermudan government and the company awarded the license. The company currently has no estimated time frame on when this will be completed, and there is no assurance a license will be awarded. The company entered into a long-term management agreement with the owner of the hotel to manage the operations of the casino and receive a management fee if a license is awarded. The company also will provide a $5m loan for the purchase of casino equipment if the license is awarded.
In June 2017, the company acquired 100 per cent of the outstanding common stock and the casino licenses held by Saw Close Casino Ltd. The company will utilise the casino licenses to develop and operate a casino in Bath, England. It estimates that the project will cost approximately $7.5 million and that the casino will open in the first half of 2018, subject to the receipt of certain regulatory and governmental approvals.
In October 2016, Century bought into St. Albert contributed $2.3m in net operating revenue and $0.6m in net earnings for the three months ended September 30, 2017 and $6.5m in net operating revenue and $0.9m in net earnings for the nine months ended September 30, 2017.
It was also selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile Racetrack and Casino. Century Mile will be a one-mile horse racetrack and multi-level racing and entertainment center, which will include a gaming floor with slot machines as well as food and beverage outlets. The project is located on Edmonton International Airport land close to the city of Leduc, just south of Edmonton and positioned off Queen Elizabeth II Highway. The company estimates that the project will cost approximately $48.1m. Construction of the Century Mile project began in July 2017. It estimates that construction of this project will take approximately 15 months and that it will be completed during the fourth quarter of 2018. The Company is seeking to obtain financing for the Century Mile project.