Century Casino Q3 Earnings Dip Amidst Economic Headwinds and Acquisition Announcement

Century Casino saw a 4% decline in net operating income during the recent quarter, as revealed in the company’s most recent earnings statement.

This equates to a net operating income of $112.6 million for the period. Adjusted EBITDA was also negatively impacted, reaching $28.1 million, a 15% reduction compared to the corresponding timeframe last year. Moreover, operating earnings for the three months ending in September were documented as $20 million, signifying a 22% year-on-year drop.

These numbers were not entirely unexpected. Century Casino’s shares had already fallen by 1.33% in the trading days leading up to the report’s publication.

Co-CEOs Erwin Haitzmann and Peter Hoetzinger ascribed the downturn to a confluence of elements. In their remarks accompanying the statement, they emphasized the difficulty of matching 2021’s exceptional financial results, fueled in part by the relaxation of COVID-19 limitations in Missouri. They also cited the prevailing economic conditions, mentioning inflationary strains and unanticipated expenses associated with their Caruthersville riverboat venture due to reduced water levels in the Mississippi River.

Notwithstanding these obstacles, Century Casino remains proactive. In August, the company concluded an agreement with Lakes Maryland Development, Golden Entertainment, and Vici Properties for the purchase of the Rocky Gap Casino Resort for a sum of $56.1 million.

During their Q3 earnings discussion, Heitzmann and Hercher spoke about the transaction, stating, “We previously disclosed in August that we had finalized an agreement to purchase the Rocky Gap Casino Resort operations. We are thrilled to incorporate this establishment into our expanding US holdings and make our entrance into the Maryland gaming sector.”