Century Casinos Reports Mixed Financial Performance for Q3 and Nine Months Ended September 30, 2024

Century Casinos, Inc. reported a mixed financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. For the third quarter, the company recorded net operating revenue of $155.7 million, a decrease of $5.5 million (3.4%) from $161.2 million in Q3 2023. However, for the nine months ended September 30, 2024, net operating revenue increased by $31.7 million (7.8%) to $438.1 million, up from $406.4 million in the prior year.

Gaming revenue for the third quarter was $105.5 million, while for the nine months, it totaled $317.8 million, reflecting a year-over-year increase. Despite the revenue growth for the nine-month period, the company reported a net loss attributable to Century Casinos, Inc. shareholders of $(8.1) million for Q3 2024, a decrease of $6.1 million (42.7%) compared to $(14.2) million in Q3 2023. However, the nine-month net loss increased significantly to $(63.3) million from $(17.4) million in the previous year, primarily due to increased interest expenses and a $23.8 million income tax expense related to deferred tax assets in the U.S.

Operating costs and expenses for Q3 2024 decreased by $8.9 million (6.1%) to $137.8 million, while for the nine months, they increased by $41.6 million (11.7%) to $397.7 million. The company attributed the decrease in Q3 operating costs to reduced acquisition costs and payroll expenses, despite increased professional services expenses.

Strategically, Century Casinos has been active in acquisitions and expansions. The company completed the acquisition of Rocky Gap Casino, Resort & Golf for approximately $59.1 million in July 2023, which contributed $51.5 million in net operating revenue but also incurred a net loss of $(10.3) million for the nine months ended September 30, 2024. The Nugget Casino Resort acquisition, finalized in April 2023, generated $68.4 million in net operating revenue but resulted in a net loss of $(12.3) million for the same period.

The company also faced challenges in its Polish operations, with net operating revenue decreasing by 26.2% in Q3 2024 due to licensing-related closures. The termination of sports betting agreements in Colorado resulted in payments of $1.1 million and $1.6 million from Circa and Tipico agreements, respectively.

As of September 30, 2024, Century Casinos reported total assets of $1.3 billion and total liabilities of $1.15 billion, with cash and cash equivalents decreasing to $118.8 million from $171.3 million at the end of 2022. The company’s equity also declined significantly, with total equity at $149.0 million compared to $214.4 million at the end of 2022.