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Canada – Century generates highest ever quarterly EBITDA in its history

By - 9 August 2021

Century Casinos generated the highest quarterly EBITDA in the history of the company for the three and six months ended June 30, 2021 with net operating revenue of $92.2m, an increase of 155 per cent from the three months ended June 30, 2020.

Earnings from operations was $18.1m, an increase of 957 per cent from the three months ended June 30, 2020. Net earnings attributable to Century Casinos shareholders was $6.9m, a change of 154 per cent from the three months ended June 30, 2020.

In late 2019, an outbreak of COVID-19 was identified in China and has since spread throughout much of the world. The COVID-19 pandemic had an adverse effect on the Company’s 2020 results of operations and financial condition, and impacted the company’s results of operations to a lesser extent in the first half of 2021 because the Company’s United States properties were open and operating during this period.

The company’s Canada properties reopened on June 10, 2021, and its Poland casinos reopened on May 28, 2021. The company’s casinos in the United States have been open since June 2020 but have been required to vary their operations based on the governmental health and safety requirements in the jurisdictions in which they are located. The duration and ultimate impact of the COVID-19 pandemic otherwise remains uncertain.

“With all of our properties now open, we continue to show strong results and momentum. In the second quarter, we achieved our highest quarterly Adjusted EBITDA in the Company’s history and a consolidated Adjusted EBITDA margin of 27.4 per cent,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We continue to have a strong balance sheet and no substantial debt maturities before 2026.”

Mr. Hoetzinger said: “The second quarter was an outstanding performance for our company and our entire team. Our focus operating strategy produced strong and robust margins and we generated the highest quarterly EBITDA in the history of our company. We’re happy to report $92.2m of revenue and $25.2m of adjusted EBITDA. Again, this is a new quarterly record for Century Casinos. On a consolidated basis, the EBITDA margin in the quarter was 27.4 per cent. All these numbers are substantially better than what the Street expected. The quarter showed continued strength and momentum across all our local and regional properties and businesses.

“The results were driven almost exclusively by our properties in the US, because our casinos in Poland and Canada were closed for most of the quarter. They have reopened in late May and early June, respectively, and have been profitable since day one. As most other local and regional casinos continued to benefit from strong demand from their strong preference for close to home entertainment, and from the fiscal stimulus. All of that has improved visitation as well as spending levels with our casinos, and together with our disciplined and efficient operating strategy, contributed to these great results across our portfolio.

“Our cost structure is more streamlined. And our marketing and promotional investments are more targeted, which translates into increased spend per visit, especially from our most valuable players. And it’s very good to see that strong operating performance from the first half of the year also continuing into July.”

Mr. Hoetzinger added: “We are developing into a multi-channel gaming company with six traditional casinos in Colorado, Missouri and in Canada with three racetrack and casino resorts in West Virginia and Canada and a variety of operations and partnerships in off track betting, sports betting and iGaming. While the traditional casino table and slot games still accounts for the vast majority of our revenue, the revenue from iGaming, sports betting and parimutuel betting has for the first time surpassed the revenue generated from our hotels or F&B operations and has become the second highest revenue generator for us. And that comes as you know without any significant investment from our side whatsoever.”

“During the quarter, our operating partners, Rush Street and William Hill launched iGaming in West Virginia under our master license. And the second of our three Colorado sports betting partnerships, plans to go live next month. But while digital gaming is an attractive way to grow our company, we see even more upside by reinvesting into our existing casino assets. One of these opportunities is our Casino in Caruthersville, Missouri, which has been a very strong performer in our original portfolio.”

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