Century Casinos announced Friday its financial results for the first quarter of 2022, which saw the company’s net operating revenue escalate 40.2% in a year-over-year comparison to $103.1 million during the period. The business now expects an increase in performance through the remainder of 2022, driven by recent acquisitions.
The brand’s earnings from operations were $13 million, an increase of 58% from the same period in 2021. Net earnings attributable to Century Casinos’ shareholders were $0.2 million, and Adjusted EBITDA was $25.8 million, an increase of 62% from 2021.
Along with the release of the financial report, Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos spoke about the results for Q1 2022 and said: “We are very pleased with the results of the first quarter. Revenue grew in each of our three reportable segments with an overall growth of 42% compared to the first quarter of 2021.”
The company’s US operations delivered most of the quarter’s revenue at $65.28 million, up just 1% from 2021’s $64.37 million. Meanwhile, Canadian operations were up to $15.99 million from $2 million one year earlier; and the group’s Polish properties posted a 269% increase to $21.82 million.
Additionally, now that all properties are operating with very few COVID-19 restrictions, the company maintained the 23% Adjusted EBITDA margin that it had in the fourth quarter of 2021, and increased that margin by 800 basis points compared to a first quarter of 2019 Adjusted EBITDA margin of 15%.
“As we announced in April, we have completed the first portion of our acquisition of the Nugget Casino Resort and are excited to enter the growing Reno/Sparks Nevada market with this transaction. The addition of the Nugget is expected to grow Adjusted EBITDA of our United States segment to approximately 80% of our total Adjusted EBITDA”, the co-founders concluded.
A day after the conclusion of the first quarter of the year, on April 1, 2022, the company purchased 50% of the membership interest in Smooth Bourbon, the business that owns Nugget Casino Resort, for approximately $95 million.
Nugget Casino Resort
Pursuant to a definitive agreement and subject to approval from the Nevada Gaming Commission, the company will purchase 100% of the membership interests in Nugget Sparks for $100 million. The acquisition is expected to occur within one year.
On the same day, the company also entered into a Credit Agreement with Goldman Sachs Bank USA, which will provide for a $350 million term loan and a $30 million revolving credit facility.