Century Casinos Report Millions of Net Loss in Fiscal 2023
LISTEN TO THIS ARTICLE:Century Casinos have released their 2023 full-year financial results, showing a net loss of $28.2m despite a 27.9% increase in net operating revenue. In 2023, Century experienced increased revenue across all markets, primarily fueled by its operations in the US. During the year, the company also expanded and diversified its network through various successful gambling industry acquisitions.
Some of the M&A transactions include investing the remaining 50% stake in Nevada's Nugget Casino Resort, acquired from Marnell Gaming in April 2023 for $100.0m. The operator also completed the purchase of Rocky Gap Casino in Maryland for $56.1m in July 2023, following the agreement made a year earlier.
In addition to these business ventures, Century also focused on several large construction projects in Missouri. One of them is the Cape Girardeau Hotel is slated to debut next month. Caruthersville casino and hotel will be completed by late 2024.
2023 was a transitional year for Century. We completed two major acquisitions to expand our US portfolio to seven casinos. We are excited to look forward to 2025 when our newly acquired casinos are fully integrated into the company and to what we anticipate will be our first year since 2022 with no significant construction or renovation disruptions at our properties.
US Contributes Highest Revenue
Looking at specific geographical figures, the United States emerged as Century's primary revenue contributor by a significant margin in 2023. The operator recorded a revenue of $380.6m in the states, up 41.7% year-on-year. This performance was further bolstered by the acquisition of two casinos. In Canada, where Century currently operates four land-based venues, revenue increased by 5.3% year-on-year to $75.4m.
Related: Century Casinos Divests Key Real Estate Assets in Canada
The company also witnessed a revenue boost in Europe by 4.3% to $94.1m. This growth occurred despite unexpected licensing delays, leading to the closure of three casinos in Poland during the fourth quarter of 2023. The group has now obtained all three Polish licenses. One casino reopened last month, and another is scheduled to reopen before the end of March. Century also reported $61,000 in other and corporate revenue, a 70.4% decrease year-on-year.
Overall Net Loss of $28.2m
Regarding the company’s 2023 expenditures, total operating expenses for the year reached $487.3m. The figure marked a 33.1% rise year-on-year. Non-operating expenses also surged by 42.7% for the year to $87.9m.
Consequently, the pre-tax loss amounted to $23.8m, a significant shift from the $6.0m profit recorded in 2022. In the year, Century received $5.3m in tax benefits but also registered a $9.7m loss from non-controlling assets. The spending total resulted in an overall net loss of $28.2m, in contrast to an $8.0m profit the previous year. Nonetheless, the operator’s EBITDAR rose by 10.4% to $114.0m in 2023.
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