Century Gaming witnessed a robust second quarter, with income escalating by 23% compared to the previous year, fueled by tactical purchases such as the Nugget Casino Resort in Sparks, Nevada. Nevertheless, the corporation posted a net deficit of $2 million in contrast to a net profit of $8 million during the corresponding period last year. This shortfall can be ascribed to expenditures associated with these latest acquisitions and the divestiture of an asset in Canada.
Despite the decline in earnings, Century Gaming’s co-CEOs, Erwin Haitzmann and Peter Hoetzinger, conveyed confidence regarding the future, emphasizing the unprecedented group reservations at the Nugget Casino Resort for the second half of 2023 and 2024.
We were incredibly satisfied with our fiscal achievements this period. The incorporation of the Gold Nugget gambling establishments has yielded unprecedented income! Nevertheless, it’s crucial to acknowledge that this expansion is somewhat counterbalanced by the ongoing renovations at our sites in Caruthersville and Cape Girardeau, Missouri. These undertakings are transient but do affect our profitability presently.
Currently, we’re undergoing a period of significant change as we assimilate these two new assets into our holdings. This presents its own set of hurdles, including inflationary strains on salaries, compensation packages, insurance premiums, and utility expenses, in addition to the anticipated expenditures linked to any acquisition.
Regarding acquisitions, Century Casinos garnered attention this quarter with two substantial transactions. Initially, on May 16th, they divested their four establishments in Alberta, Canada to Vici Propco. This agreement was purportedly valued at C$221.7 million (approximately US$1.673 billion) and encompassed the Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino, all situated in Alberta.
[Image would be beneficial here illustrating the geographical dispersion of Century Casinos’ revenue from owned and managed casinos in 2022 (left) and 2023 (right) worldwide.]
Furthermore, on April 3rd, Century Casinos finalized the purchase of Nugget Sparks for $1.047 billion and subsequently acquired a 50% interest in Smooth Bourbon for $9.5 million just a few days later.
Although technically beyond the Q2 timeframe, it’s noteworthy that Century Casinos also concluded the acquisition of the Rocky Gap Casino Resort in Flintstone, Maryland on July 25th for $61.2 million.
Just prior to the firm’s announcement of their latest quarterly earnings, their share price finished at $7.93.
admin