Century Casinos recently announced revenues for April, May and June: $36.1 million, down 31 percent compared to $52.4 million for the same time frame one year earlier.
Losses from operations were $2.1 million, compared to earnings of $2.6 million for the same three months in 2019, a drop of 181 percent. The company closed all of its casinos, hotels and other facilities due to Covid-19 in mid-March; its North American operations reopened between June 1 and June 17.
Century Casinos Co-CEO Peter Hoetzinger said, “The first casinos we reopened were the ones in Europe, in Poland on May 18. The casinos in the smaller cities around the country, which draw mostly from locals, are doing very well, actually a little better than during the same time last year. But the results of two larger casinos in the capital city of Warsaw are softer because of the lack of tourists and business travelers.”
Hoetzinger explained operations in Poland, which makes up 10 percent of total consolidated EBITDA, are down about 25 percent. “Most importantly, however, the operation already is cash flow-positive,” he said.
Century’s Missouri properties reopened June 1. “Missouri’s our most important market in terms of cash flow generation, and what a success the reopening was and still is. Even though we have only half of the table game positions and about 80 per cent of the slots in operation, results are record breaking.” Hoetzinger stated. In June, as Illinois casinos remained closed, “Cape share though was up over 40 percent on revenues and more than doubled adjusted EBITDA, an absolute record for that property,” he said.
Century Casino Caruthersville revenue also rose 8 per cent and adjusted EBITDA was up 40 per cent, “a huge success and a tremendous achievement by our management team,” Hoetzinger commented.
Illinois casinos reopened in July, he noted, however, he said, “results are significantly stronger than last year. Cape G almost doubled EBITDA and Caruthersville is up about 30 per cent. So it goes without saying that also this market has very quickly turned cash flow positive for us.”
Hoetzinger noted when the company’s Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia reopened on June 5, “huge crowds formed long lines around the building.” He said, “In June, revenue was up seven per cent and adjusted EBITDA was up 57 per cent compared to June of last year. July is a little softer and down compared to last year, mostly due to the newly introduced temporary smoking ban. Fortunately, last week, we have been allowed to introduce Slim Plexiglass barriers between slot machines, which lets us increase the number of available slots from the current 500 to over 800. That should have a positive impact right away.”
Century’s two Colorado properties in Cripple Creek and Central City reopened in mid-June without table games and with fewer slots. Hoetzinger said, “Even though we had less slots in operation, and for only half of the month, adjusted EBITDA in June was at a combined 51 per cent year-over-year, truly remarkable. And July is even better. Revenue and adjusted EBITDA almost doubled compared to last year.”
Co-CEO Erwin Haitmann said, “We are excited by the enthusiasm our customers have shown in visiting our reopened casinos. We are pleased that our operations have been able to achieve cash positive positions so soon after reopening. We continue to take social distancing and our customers’ health very seriously, and we continue to explore new ways to further improve customer safety. We would like to thank our customers, employees, communities and authorities for their cooperation and support both during and after our temporary closures.”
