Century Casinos Sees Revenue Slide as Expenses Increase

Article by : Erik Gibbs Feb 12, 2024

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CenturionBet posted preliminary Q4 results, projecting revenue between $140 million and $145 million, a significant YoY increase of 37.0% from $104 million in Q4 2022. However, despite robust revenue growth, higher operational costs are anticipated. This will lead to a net loss between $9.8 million and $13.6 million, up from $4 million in the same quarter the previous year.

Key developments include obtaining new licenses for its Polish casinos, scheduled to reopen this year. Notable venues like the Bielsko-Biala and Katowice casinos will resume operations, and the Wroclaw casino is slated to reopen by mid-2024.

Additionally, construction progress in Missouri at Cape Girardeau and Caruthersville remains on schedule and within budget, with a hotel in Cape Girardeau set to open in April and a casino hotel in Caruthersville expected before the year’s end.

In their forward-looking perspective, co-CEOs Erwin Haitzmann and Peter Hoetzinger express optimism for the upcoming year.

Anticipating 2024 as a transitional phase, they underscore the ongoing integration of Nugget and Rocky Gap operations into the company’s portfolio. Additionally, the completion of sizable construction endeavors in Missouri is on the agenda.

Estimated company-wide capital expenditures, excluding the Caruthersville project financed through Vici, are projected to reach around $46 million in 2024. The leadership team looks ahead to 2025, envisioning the culmination of efforts from 2023 and 2024 without the current disruptions.

Analyzing additional financial indicators for the three months ending on December 31, 2023, reveals an upward trajectory in various expenditure areas. Interest expenses are poised to range between $24.5 million and $25.5 million, marking a notable increase from the $17 million recorded in 2022.

Simultaneously, depreciation and amortization may reach up to $12 million, a surge from the previous $6.8 million. Tax projections estimate a range between $3 million and $5 million, contrasting with the $500,000 tax benefit received in 2022.

Despite these escalating costs and an anticipated rise in net loss, the positive aspect lies in the projected adjusted EBITDAR, expected to fall within the range of $24 million to $26 million, showcasing improvement from the $21.7 million reported in Q4 of 2022.

Expressing confidence in their financial standing and capital expenditure strategy, Haitzmann and Hoetzinger emphasized their commitment to exploring opportunities for minimizing operational costs to optimize earnings and cash flow.

Additionally, they are actively assessing strategies to diminish non-operational costs in the future.