Colorado-Based Century Casinos Records Slight Decline After Third Quarter

One of the eminent West Virginia venue aiming to boost overall earnings. However, the acquisition didn’t bring a significant increase in profits for the operator at the end of the third quarter.

Expectations

According to Union Gaming (UG) prediction, the operator was expected to have an EBITDA result (which stands for earnings before interest, taxes, depreciation, and amortization) of $8,8 million. FactSheet Consensus, on the other hand, predicted an expected amount of $8,2 million. However, the company reported only $7,1 million.

The company recorded a weaker performance due to lower sales in its recently opened Century Mile property. John Decree from Union Gaming said:

“We remain confident [Century] management will successfully ramp the property in 2020. We anticipate the slower-than-expected ramp at Century Mile will be offset slightly by the opening of Century Downs’ casino floor expansion in a couple of weeks, which should drive incremental revenue with high flow through. As a result, we’ve decreased our 2020 EBITDA estimate at Century Mile by 16% and increased our estimate at Century Downs by 4%. Overall, our EBITDA estimate in Canada goes to USD$29.4 (down from USD$30.3m).”

Next Year’s Prediction

Taking into consideration the lower performance of the operator, Union Gaming has adjusted the EBITDA expectation for next year. UG Analysts predict a $65 million EBITDA, instead of the expected $66m, while giving the venue a price target of $10,50.

Operation of the Casino

In recent years, Century has been running gaming operations in Poland. It seems to be very lucrative for the operator giving the improvement of the Polish market. As a reminder, Poland has undergone serious changes and now it becomes a 28% stronger market than before. It will boost its revenues in Poland capital – Warsaw – which will likely continue over the years.

The company should concentrate on the Polish market due to continuous issues with Century’s Bath Casino UK. Due to stringent regulation, gambling revenues have declined across the UK which affected the Colorado-based operator as well. The company will not be able to cover the losses which will result in -2,4 million EBITDA for the United Kingdom venue.

Source:

“Century Casinos finishes under expectations in the third quarter“, Erik Gibbs, calvinayre.com, November 5, 2019.