Century Casinos reported revenue up by 11% to $430.5 million in 2022, a new record, with adjusted earnings before interest, taxes, depreciation, and amortization of $103.3 million, a 6% increase over 2021.
Despite these increases, the Colorado-based casino company’s stock dropped 16% after they reported a decline in earnings in the last year because of higher costs. In the fourth quarter of 2022, the company reported a $4 million net loss. Earnings attributable to shareholders were down by 61%.
Century’s stock dropped by 14 cents a share in the final three months of 2022 on revenue of $103.8 million. Forecasts from analysts had them at a profit of 2 cents a share on sales of $104.2 million.
Century Casinos pulls in revenue from across the world
Colorado online gambling is going well, with gamblers able to bet on sports and buy lottery tickets online. Online casino gambling, however, is still not legal in Colorado.
Currently, Century’s five casino properties in the US are located throughout Colorado, Missouri, and West Virginia and account for 62% of the company’s revenue. The company also has a two-thirds stake in Casinos Poland, which has various major hotel locations.
There have been rumors that Century is looking to pull out of the Polish market to expand on more US-based operations. But co-CEO Peter Hoetzinger quashed those rumors. He said their performance was “solid.”
“Revenue was up 11%. We don’t have any time pressure.”
Revenue was up despite drop in earnings
Earnings may have dropped overall, but the company was more focused on the fact they ended 2022 with record revenue. This despite the temporary closure of Century Casino Caruthersville in Missouri due to low water levels in the Mississippi River.
Century was forced to relocate the casino’s location from a riverboat to a land-based building until work is completed.
Development in Caruthersville, and on Century Casino Cape Girardeau, also in Missouri, should be finished in 2024.
New acquisitions for Century Casinos in the works
The future remains fruitful for Century, with several projects on the horizon.
Century received approval from the Nevada Gaming Control Board to purchase Sparks’ Nugget Casino Resort for $195 million. The approval was unanimous, and now the Nevada Gaming Commission must approve it at its next meeting on March 23. If they get the go-ahead, Century should lock up the acquisition in early April.
Hoetzinger said Century wants to improve the Nugget’s casino gaming floor and look at cost-saving plans. This would be Century’s largest resort if the deal goes through.
In the near future, Century also plans to gain operating rights of the Rocky Gap Casino Resort in Flintstone, MD. Golden Entertainment could hand over the keys to Century in the $260 million sale of the property before July. The real estate itself will be acquired by Vici Properties.