Supplier News
Canada – Century reports seventh quarter of revenue growth
By Phil - 8 August 2016
Century Casinos reported its second quarter financial results for the three and six months ended June 30, 2016 with net operating revenue growing six per cent and adjusted EBITDA increased by five per cent, marking the seventh consecutive quarter of both revenue and adjusted EBITDA growth.
Net operating revenue was $35.2m, a seven per cent decrease from the three months ended June 30, 2015.
Earnings from operations were $4.5m, a 42 per cent decrease from the three months ended June 30, 2015.
The period over period decreases relate to $4m paid to Century in the second quarter of 2015 by Norwegian Cruise Line Holdings for the termination of its concession agreements with subsidiaries of Norwegian. The $4m was recorded in the second quarter of 2015 under operating revenue net of $0.6m related to assets that were sold to Norwegian as part of the termination agreement.
Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said: “Our strongest segment Canada which provides 62 per cent of our consolidated EBITDA saw a revenue increase of four per cent but due to higher marketing cost and property taxes, it resulted in a small three per cent decline in adjusted EBITDA. Our US operations performed even stronger revenue up seven per cent and adjusted EBITDA up 16 per cent.
Overall, our US casinos generated 22 per cent of the company’s consolidated adjusted EBITDA. Also Poland had a very good quarter, revenue up 10 per cent, adjusted EBITDA up 16 per cent in local currency. Poland was responsible for 23 per cent of our total adjusted EBITDA in the quarter. These solid results clearly reflect the underlying strength and stability of our geographically diverse portfolio of casino asset.”
“The second quarter reflected strong revenue performances from our three operating segments. In local currency, Canada was up four per cent Poland was up ten per cent and Colorado was up seven per cent We are happy about the underlying strength and stability of our geographically diverse portfolio of casino assets,” Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos, said. “In addition, we are looking forward to closing the CAD 29.9m Apex Casino acquisition in the fourth quarter and anticipate that it will be accretive to the Company’s earnings beginning in the fourth quarter of 2016,” they continued.
In June 2016, Century announced that its subsidiary Century Casinos Europe had entered into an agreement to acquire 100 per cent of the issued and outstanding shares and related land of entities operating the Apex Casino in suburban Edmonton, Alberta, Canada. Apex is a 34,500 square foot casino facility located on approximately seven acres of land. The casino facility includes 382 slot machines, 11 live table games, a restaurant, a bar, a lounge and a banquet facility that can accommodate up to 175 guests. Closing, which is subject to, among other things, financing for the acquisition and customary closing conditions, including the receipt of necessary regulatory and governmental approvals as well as the completion of due diligence by Century, is expected to occur in the fourth quarter of 2016.
In June 2016, Century 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., it began operating the ship-based casino onboard Glory Sea, a 1,200 passenger cruise ship, in July 2016. Glory Sea, which has 40 slot machines and 16 table games, will focus on the Chinese cruise market with four-day trips between China, South Korea and Japan. Under an amended concession agreement with TUI Cruises, it also plan 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.
