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Mar 31, 2020
Century Casinos Q1 2020 Earnings Report
Century Casinos' financial performance was impacted by the acquisition of new casinos and the COVID-19 pandemic.
Key Takeaways
Century Casinos reported a significant increase in net operating revenue, driven by the acquisition of new casinos. However, the COVID-19 pandemic and associated closures led to a substantial loss from operations and a net loss attributable to shareholders, including a $33.0 million impairment charge. Despite these challenges, Adjusted EBITDA increased, reflecting the underlying strength of the operations prior to the pandemic.
Net operating revenue increased by 92% to $87.7 million, driven by recent acquisitions.
Loss from operations was ($31.8) million, a decrease of (1022%) compared to the previous year.
Net loss attributable to shareholders was ($45.9) million, a decrease of (4394%) year-over-year.
Adjusted EBITDA increased by 44% to $9.6 million.
Century Casinos
Century Casinos
Century Casinos Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comCanada Revenue
CapyFin.comPoland Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The COVID-19 pandemic is expected to continue to have an adverse impact on the Company's second quarter 2020 results. The Company anticipates a phased approach to reopening will be recommended by government officials, and is anticipating reopening most of its locations beginning in June 2020 and no later than August 2020.
Positive Outlook
- The Company's casinos rely on a local customer base, enabling a quicker resumption of operations.
- Poland casinos reopened on May 18, 2020.
- Most other locations are anticipated to reopen beginning in June 2020 and no later than August 2020.
- Actions have been taken to reduce operating costs, including furloughing personnel and implementing reduced work weeks.
- The Company will continue to pay benefits to United States and Canadian employees through May 2020.
Challenges Ahead
- The COVID-19 pandemic has had an adverse effect on the Company’s first quarter 2020 results of operations and financial condition.
- The Company anticipates a phased approach to reopening will be recommended by government officials, which could include reduced levels of gaming space and social distancing.
- The Company permanently closed Century Casino Bath in March 2020.
- Four of the ship-based casinos will not reopen due to expiration of concession agreements.
- The Company currently is not generating any revenue from its properties, and estimates that the net cash outflow will be, on average, approximately $8.0 million per month.
Revenue & Expenses
Visualization of income flow from segment revenue to net income