Century Gaming Reports Strong Q2 Revenue Growth Despite Earnings Dip

Century Gaming announced a robust Q2 2023, achieving a 23% surge in yearly revenue, fueled by the success of newly acquired assets and substantial expansion in its primary operations. Despite this, the firm’s earnings decreased due to expenses related to these acquisitions.

A summary of Century Gaming’s Q2 2023 financial performance is as follows:

* **Total Revenue:** $136.8 million, a 23% increase year-on-year.
* **Income from Operations:** $18.6 million, a 10% decline year-on-year.
* **Net Deficit:** $2 million, contrasting with a net profit of $8 million in the corresponding period last year.
* **Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization:** $29.3 million, a 2% decrease year-on-year.

Within the quarter, Century Gaming finalized the purchase of the Nugget Casino Resort situated in Sparks, Nevada. The corporation also divested its real estate holdings in Canada.

Leadership expresses confidence in the prospects of the Nugget Casino Resort, highlighting unprecedented collective reservations for the latter half of 2023 and the entirety of 2024.

Century Casinos experienced a remarkable quarter, exceeding earnings projections significantly. This success is largely attributed to the incorporation of the Nugget Casino Resort into their portfolio. However, some minor setbacks were encountered due to construction delays at their Missouri locations in Hermann and Cape Girardeau.

Currently, the company is focused on incorporating two new hotels in promising, emerging gaming destinations. This endeavor involves managing the typical challenges of inflation, such as wage pressures, benefit costs, and rising utility expenses, in addition to the inherent costs associated with any acquisition.

Regarding acquisitions, Century Casinos completed two significant transactions during this period. On May 16th, they divested their four properties in Alberta, Canada, to Vici Propco Buyer for CAD $2.217 billion (approximately US $1.673 billion). These properties include the Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.

The accompanying graphs illustrate the revenue generated by each of their global casino properties in 2022 (left chart) and 2023 (right chart).

Furthermore, on April 3rd, the company finalized the acquisition of Nugget Sparks for a substantial sum of $1.047 billion. Preceding this, they secured a 50% ownership interest in Smooth Bourbon for $95 million.

Lastly, although technically occurring after the second quarter, Century Casinos acquired the Rocky Gap Casino Resort in Flintstone, Maryland, on July 25th for $61.2 million. The company remains committed to pursuing new and promising ventures.

Prior to the firm releasing its second-quarter earnings report, the share value stood at $7.93.