Canada – Century reports record revenue and EBITDABy Phil - 13 March 2017
Century Casinos has reported a record year in 2016 in terms of net operating revenue and Adjusted EBITDA with revenues up across all its market its Canada, the US and Poland.
The results were helped by a strong fourth quarter when net operating revenue increased by $4.3m, or 14 per cent, and by $5.5m, or four per cent for the three months and year ended December 31, 2016.
Earnings from operations increased by $1.9m, or 109 per cent, and by $0.4m, or two per cent for the three months and year ended December 31, 2016.
Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said: “2016 was a tremendous year for Century Casinos with net operating revenue and Adjusted EBITDA reaching all-time record levels. The year ended with a strong fourth quarter, with all major operating regions posting solid increases in net operating revenue and Adjusted EBITDA compared to the fourth quarter of 2015: in local currencies, Canada increased eight per cent and 43 per cent, the United States increased 11 per cent and 38 per cent and Poland increased 23 per cent and 52 per cent, respectively. The refurbishment of the VIP rooms at Century Casino & Hotel Edmonton, the acquisition of Century Casino St. Albert and the addition of three ship-based casinos have already generated positive results and will help us grow further.”
In October 2016, the company’s subsidiary, Century Casino St. Albert, acquired 100 per cent of the issued and outstanding shares and related land of entities operating the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert, formerly Apex Casino, is a 34,500 square foot casino facility located on approximately six acres of land that includes 381 slot machines, 12 video lottery terminals, 11 live table games, a restaurant, a bar, a lounge and a banquet facility that can accommodate up to 175 guests. CSA contributed a total of $2m in net operating revenue and $0.3min net earnings during the quarter ended December 31, 2016.
In June 2016, the company began operating the ship-based casinos onboard the Mein Schiff 5, a new 2,500 passenger cruise ship, and the TUI Discovery, a 2,067 passenger cruise ship. Under an agreement with Diamond Cruise International Co., Ltd., the Company began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in July 2016. Glory Sea operates in the Chinese cruise market with four-day trips between China, South Korea and Japan. The Glory Sea casino has 50 slot machines and 17 table games. Under an amended concession agreement with TUI Cruises, the company also plans to operate the ship-based casino onboard Mein Schiff 6, a new 2,500 passenger cruise ship that is expected to begin operations in the third quarter of 2017.
In September 2016, the company was 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. 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 proposed location is on Edmonton International Airport land and 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 CA$50m and construction will take approximately 15 months to complete. Commencement of construction of this project is subject to, among other things, the company’s obtaining financing and receipt of further regulatory and governmental approvals, including but not limited to approval by the Alberta Gaming and Liquor Commission.