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Canada – Third quarter up 22 per cent but Century misses estimates

By - 4 November 2019

Century Casino reported that its operating revenue increased by 22 per cent to $52.9m in the third quarter, driven by a rise in Canadian revenue of 41 per cent to $22.06m.

Earnings from operations were $3.5m, an increase of eight per cent from the three months ended September 30, 2018.
“Operations at Century Mile continue to ramp up and we are pleased with the revenue generated at the property, which is in line with our expectations. We continue to analyse the cost structure, staffing levels and efficiencies of Century Mile to achieve the margins we expect, which is normal during the first phase of operations,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We look forward to closing the Eldorado Acquisition and see some short-term low-cost measures that we can implement to improve performance.”

On June 17, 2019, the company entered into a definitive agreement to acquire the operations of Isle Casino Cape Girardeau, Lady Luck Caruthersville and Mountaineer Casino, Racetrack and Resort from Eldorado Resorts for approximately $107m which it expects to finance through a new credit facility. Simultaneous with the closing of the Acquisition, VICI Properties will acquire the real estate assets of the three properties for approximately $278m and the company will enter into a triple net lease agreement with VICI for the three casino properties. The lease will have an initial annual rent of approximately $25m and an initial term of 15 years, with four five-year renewal options.

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