Posted on: March 10, 2023, 02:00h.
Final up to date on: March 10, 2023, 03:22h.
Shares of Century Casinos (NASDAQ: CNTY) tumbled Friday after the small-cap regional on line casino operator posted fourth-quarter outcomes that missed analysts’ estimates.
The Colorado-based firm stated it misplaced 14 cents a share on income of $103.8 million within the final three months of 2022. Analysts anticipated a revenue of two cents on gross sales of $104.2 million. In consequence, market members are taking the inventory to activity. In late buying and selling, the shares are off greater than 15% on quantity, almost quadruple the every day common. Earlier right this moment, the inventory slipped by greater than 22%.
Whereas the operator didn’t immediately handle why its fourth-quarter outcomes missed Wall Road forecasts, co-CEOs Erwin Haitzmann and Peter Hoetzinger famous in a press release Century concluded 2022 with file adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) and internet working income.
The executives added that building on the firm’s two Missouri on line casino motels in Cape Girardeau and Caruthersville is slated to be accomplished in 2024. Within the December quarter, there have been some disruptions on the Caruthersville venue owing to low water ranges within the Mississippi River. Nonetheless, that shouldn’t be a long-term concern as a result of the riverboat on line casino is shifting ashore.
Century Nevada Replace
Haitzmann and Hoetzinger additionally famous that the Nevada Gaming Management Board (NGCB) just lately beneficial that the Nevada Gaming Fee (NGC) log off on Century’s $195 million acquisition of Sparks Nugget.
It’s attainable these approvals may arrive subsequent month, paving the way in which for the operator’s preliminary foray into Nevada.
Our software should nonetheless be accredited by the Gaming Fee in Nevada at its assembly on March 23. If accredited, we plan to shut the market acquisition within the first week of April, lower than 4 weeks from right this moment. We’re finalizing our plans for preliminary investments and upgrades, and I’m extra excited than ever concerning the potential for enhancements,” stated Hoetzinger on a convention name earlier right this moment with analysts.
He added that Century’s fast focus in Sparks will likely be on the Nugget’s on line casino ground and figuring out cost-saving alternatives throughout the venue.
The co-CEO additionally noticed that the operator expects to shut its buy of the working rights of Rocky Hole On line casino Resort in Flinstone, Md., in June or July. Golden Leisure (NASDAQ: GDEN), the present venue operator, introduced the $260 million sale of the property final August, with VICI Properties (NYSE: VICI) buying the true property.
Poland Sale Replace
Earlier than Russia invaded Ukraine, it was anticipated that Century would look to promote its two-thirds stake in Casinos Poland and use the capital for potential growth alternatives within the US.
The battle delayed that course of, however casinos there are thriving attributable to an inflow of Ukrainian nationals to Poland. Century will not be in a rush to half with these operations.
“Our casinos in Poland continued their strong efficiency. Income was up 11%. As our leads to Poland are constantly robust, it could as nicely wait for an additional license excited to kickstart the gross sales course of. We don’t have any time stress,” noticed Hoetzinger. “That timing is just not a problem for us. As , now we have a superb administration staff there in place, and there’s no want for any funding or CapEx from our aspect. It’s fairly the other. Money is flowing from Poland to us.”