Century Casinos generated record revenue and EBIDTA for the three and nine months ended September 30, 2023, with revenue coming in at $161.2m, an increase of 43 per cent.
Adjusted EBITDA was $33.3m, an increase of 19 per cent whilst loss came in at $14.2m, a change of 582 per cent.
“With our acquisitions of the Nugget Casino Resort and Rocky Gap Casino, Resort & Golf we achieved record high net operating revenue and Adjusted EBITDA. One time expenses related to the Rocky Gap acquisition and Canada sale leaseback transaction negatively impacted our earnings from operations and net loss for the quarter. Looking ahead we anticipate revenue and operating expense trends to remain consistent with what we have seen the last several quarters,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “The completion of the Canada sale leaseback reduced our Net Debt from $255.5m as of June 30, 2023 to $158.9 million as of September 30, 2023,” Messrs. Haitzmann and Hoetzinger concluded.
On July 25, 2023, the company completed its previously announced acquisition of the operations of Rocky Gap Casino Resort in Flintstone, Maryland, for $59.1m. Simultaneous with the closing of the transaction, an affiliate of VICI Properties acquired a related interest in the land and building associated with Rocky Gap for approximately $203.9m and the company amended its triple net master lease agreement with subsidiaries of VICI to add the Rocky Gap property.
On September 6, 2023, the company completed its previously announced agreement for subsidiaries of VICI to acquire the real estate assets of Century Casino & Hotel Edmonton in Edmonton, Alberta, Century Casino St. Albert in Edmonton, Alberta, Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino in Calgary, Alberta for an aggregate purchase price of CA$221.7m.
The company expects to retain approximately CA$154.5m of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs. Simultaneous with the closing of the transaction, the Century Canadian Portfolio was added to the Master Lease.