Century Casinos is to reopen two casinos in Poland having been granted licenses for the two venues that it had closed in October 2023 due to the expiration of the casino licenses.
The anticipated reopening of the casinos is the end of February 2024 for the casino in Bielsko-Biala and in mid-March 2024 for the casino in Katowice. In November 2023, the company closed its Wroclaw casino due to the expiration of the casino license. The company was granted a new license for Wroclaw in December 2023 and anticipates reopening the casino in a new location in mid-2024.
The operator said it expects ‘2024 to be a transitional year’ as it announced its preliminary financial results for its fiscal fourth quarter ended December 31, 2023 and an update on the Company’s projects.
Preliminary fourth quarter 2023 estimates are see $140m to $145m in net operating revenue (compared to $104m in fourth quarter 2022. As reported in the company’s third quarter filings, the $30m revolving facility with Goldman Sachs Bank USA (Goldman) that the company borrowed in July 2023 in connection with the Rocky Gap acquisition was repaid on September 21, 2023.
The company has agreed to buy back $3.5m of its term loan with Goldman at 97 per cent of the cost of the debt. The transaction is expected to occur in February 2024.
In Missouri, the construction projects of the hotel in Cape Girardeau (to be called the The Riverview and the new land-based casino and hotel in Caruthersville continue to be on time and on budget. The Company anticipates opening the hotel in Cape Girardeau the first week of April 2024 and the land-based casino and hotel in Caruthersville by the end of 2024. The Caruthersville project is being financed by VICI Properties Inc. (“VICI”), inclusive of approximately $19 million of cash on hand that was previously funded by VICI but has not yet been spent on the project and is included in the Company’s consolidated balance sheet as of December 31, 2023.
“We expect 2024 to be a transitional year for the company as we continue to integrate the Nugget and Rocky Gap operations into our portfolio and complete our two large construction projects in Missouri. We estimate our company-wide capital expenditures, excluding the Caruthersville project that we are financing through VICI, to be approximately $46m in 2024. We look forward to 2025, when we can see everything we are working towards in 2023 and 2024 coming to fruition without the disruptions we are currently experiencing,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. “We feel comfortable with our cash position and capex plan, and we continue to look for every opportunity to reduce operating costs going forward to maximize earnings and cash flow. In addition, we are evaluating ways to reduce our non-operating costs going forward,” they concluded.