Century Casinos reported operating income of $103.1 million for the first quarter of 2022, achieving an increase of 42%. The company’s operating profit was also up 58% from the same financial period last year, at $13 million, while net income was up 115%.
In addition, adjusted EBITDA was US$ 23.8 million, an increase of 62%. Century Casinos attributes this improvement in financial results to the easing of lockdown restrictions in its key markets, including the reopening of properties in Canada and Poland.
The company is expected to complete its acquisition of Nugget Sparks LLC, which will involve $100 million for 100% of the company’s shares. The deal follows Century’s decision to buy a 50% stake in Smooth Bourbon for $95 million.
Century Casinos expect considerable returns from new acquisitions
The operator expects to realize a considerable return on investment in these acquisitions, having entered into a credit agreement with Goldman Sachs for a loan of US$350 million.
The company’s joint CEOs, Erwin Haitzmann and Peter Hoetzinger, commented: “We are very pleased with the results for the first quarter. Revenue grew in each of our three segments, with an overall increase of 42% over the first quarter of 2021.”
“All of our gambling properties are now operating with few restrictions regarding Covid-19. We maintained the adjusted EBITDA margin of 23% that we had in the fourth quarter of 2021 and increased that margin compared to the first quarter of 2019 by 15%.”
“As we announced in April, we have completed the first part of our acquisition of Nugget Casino Resort and are excited to enter the growing Reno/Sparks Nevada market with this transaction. We expect the addition of Nugget to increase adjusted EBITDA for our US businesses by approximately 80% of our total adjusted EBITDA.”