Century recently announced its preliminary results for Q4, indicating a projected increase in revenue. The company expects revenue to range between $140m and $145m, compared to $104m in Q4 of 2022, representing a significant year-on-year growth of 37.0%. However, Century also anticipates a higher net loss for the quarter due to increased business costs. The net loss is estimated to be between $9.8m and $13.6m, compared to $4.0m in the same period last year.
While Century did not provide detailed information about the revenue performance, it did highlight some recent developments in its operations. This includes obtaining new licenses for its casinos in Poland, which are scheduled to reopen. The Bielsko-Biala casino will resume operations this month, followed by the Katowice site in March. The Wroclaw casino, which temporarily closed in November, is expected to reopen by mid-2024. Moreover, construction projects at Century’s locations in Cape Girardeau and Caruthersville, Missouri, are progressing as planned and within budget. A hotel in Cape Girardeau will open in April, and a casino and hotel in Caruthersville will be inaugurated before the year’s end.
Moving forward, Century’s co-chief executives, Erwin Haitzmann and Peter Hoetzinger, express optimism about the upcoming year. They view 2024 as a “transitional” year for the company as it integrates the Nugget and Rocky Gap operations into its portfolio and completes the two major construction projects in Missouri. They anticipate approximately $46m in company-wide capital expenditures, excluding the Caruthersville project, in 2024. Haitzmann and Hoetzinger eagerly anticipate 2025, expecting the fruition of their efforts from 2023 and 2024 without the current disruptions.
Examining the financial figures for the three months ending on December 31, 2023, costs are expected to rise across various areas. Interest expense may range between $24.5m and $25.5m, higher than the $17.0m reported in 2022. Depreciation and amortisation expenses could amount to as much as $12.0m, up from $6.8m. Tax payments are estimated to be between $3.0m and $5.0m, contrasting the $500,000 tax benefit received by Century in 2022. Nonetheless, there is positive news concerning adjusted EBITDAR, projected to be between $24.0m and $26.0m, surpassing the $21.7m recorded in Q4 of 2022.
Haitzmann and Hoetzinger assert their confidence in the company’s cash position and capital expenditure plan, while also emphasizing their commitment to reducing operating costs to maximize earnings and cash flow. They are also exploring opportunities to minimize non-operating costs going forward.
