Century Casino saw its net operating income decrease by 4% in the third quarter.
The gaming company’s third-quarter earnings statement showed this reduction, with net operating revenue coming in at $112.6 million. Adjusted EBITDA also experienced a decrease, falling 15% year-over-year to $28.1 million. Moreover, operating income suffered, declining 22% to reach $20 million for the three months ending in September.
This information was not welcomed by investors, as Century Casino’s stock price experienced a 1.33% drop in the five days leading up to the report’s publication.
Co-CEOs Erwin Haitzmann and Peter Hoetzinger attributed this negative trend to a confluence of elements. In their remarks accompanying the earnings release, they highlighted the difficult comparison to 2021’s exceptional results, which were particularly robust due to the relaxation of pandemic limitations in Missouri. They also mentioned the effects of price increases and unexpected costs associated with low water levels in the Mississippi River, which impacted their Caruthersville riverboat casino.
Despite these obstacles, the business made a substantial move in August by purchasing the Rocky Gap Casino Resort. This acquisition, a partnership with Maryland Lake Development, Golden Entertainment, and Vici Properties, was completed for a total of $56.1 million.
In their third-quarter financial results briefing, Heitzman and Hirsinger spoke about the transaction, stating, “The finalization of the agreement to purchase the Rocky Gap Casino Resort operations, as disclosed in August, is a source of great enthusiasm for us.
We are eager to expand into the Maryland market and include this asset in our expanding U.S. holdings.”