Co-chief executive officers of Century Casinos Erwin Haitzmann and Peter Hoetzinger said that they had anticipated a “challenging” Q1 due to “continuing construction disruptions and the closure of three of our casinos in Poland for some or all of the quarter.”
The company’s newly published quarterly results show a 25 per cent year-over-year increase in net operating revenue to US$136m, but a decrease in earnings from operations of 55 per cent to $8.3m, and a decrease in Adjusted EBITDAR of 18 per cent to $21.3m.
“The quarter was further impacted by disruptions from severe weather at the majority of our US casinos,” they continued. “ Cash payments of $12.2m for taxes related to the September 2023 sale and leaseback of our Canada properties and a $3.4m one-time principal paydown of debt as well as $18.4m in property and equipment purchases decreased our overall cash balance.”
Nevertheless, they stated that their positive outlook for the second half of the financial year remains unchanged. “Our increased spend on capital projects throughout our properties is expected to end over the summer. Our largest capital project (fully funded by VICI Properties Inc.), the land-based casino in Caruthersville, Missouri, is also expected to be completed by the end of the year.
“By 2025, all of our operations should be in great shape with no more construction disruptions and all casinos in Poland fully operational. We are also excited about the performance of The Riverview, our new hotel at Century Casino Cape Girardeau, Missouri, which has exceeded our expectations so far.”
