Century Casinos reported a 202.7% year-on-year jump in net profit during the third quarter of its 2021 financial year, while revenue reached a new record high.
Revenue for the three months to September 30 amounted to $116.6m, up from $95.7m in the same period last year, with growth in all regions after Century’s performance in 2020 was impacted by the novel coronavirus (Covid-19) pandemic.
Century’s US casinos remained by for the primary source of income for the operator, with revenue in the country increasing 18.1% to $73.9m. All of Century’s US properties were open and operational in Q3 as Covid-19 measures in the country were eased.
Canadian revenue also climbed 28.9% to $21.4m, after casinos in the country reopened on June 10, albeit it with certain entry requirements for consumers, including a negative rapid test result or proof of vaccination.
Polish revenue hiked 30.1% to $21.2m, as casinos reopened in May following a period of closure during the winter, while corporate and other revenue also climbed by 35.7% to $194,000.
Group operating costs and expenses increased 12.6% year-on-year to $90.9m, while non-operating spend during the quarter edged up 1.9% at $10.8m.
However, such was the impact of the revenue increase that pre-tax profit rocketed 240.9% to $15.0m, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) hiked 49.1% to $33.2m.
Century paid $2.6m in tax in Q3 and after also accounting for $1.2m in losses attributable to non-controlling interests, net profit for the quarter reached $11.2m, up 202.7% year-on-year.
“In the third quarter we achieved outstanding results,” Century’s co-chief executives Erwin Haitzmann and Peter Hoetzinger said. “We achieved our highest quarterly net operating revenue and adjusted EBITDA in the company’s history and a consolidated adjusted EBITDA margin of 28.3%.
“We continue to have a strong balance sheet, with cash over $100m and no substantial debt maturities before 2026.”
Looking at the year-to-date performance, revenue was 28.1% up on last year to $281.2m, with US revenue rising 53.7% to $215.0m. However, Canadian revenue was 20.0% down to $30.0m, Polish revenue fell 10.7% to $35.8m and corporate and other revenue 64.5$ to $456,000.
Overall operating costs and expenses were 3.9% lower at $229.1m and non-operating spend fell 3.1% to 31.5m, but the revenue hike meant pre-tax profit reached $20.6m, compared to a $51.4m loss last year. Adjusted EBITDA was also 143.3% higher at $73.0m.
After accounting for $3.8m in tax and $86,000 in losses related to non-controlling interests, net profit for the period was $16.7m, compared to a $54.7m loss in 2020.
In related news, Century announced plans to relocate its Century Casino Caruthersville casino – the last remaining riverboat on open water in Missouri – to a land-based casino with an attached hotel, with the aim of opening in early 2024.
Century also said it will build a hotel to attach onto its Century Casino Cape Girardeau, also in Missouri, with the hope of opening in late 2023.
The projects are expected to cost a total of $68.3m, with Century planning to finance the cost with cash on hand, financing, or a combination of the two.
“We are exploring exciting growth opportunities at our two Missouri properties with plans to build a hotel at each property and a land-based casino in Caruthersville,” Haitzmann and Hoetzinger said.