Century Casinos see profits fall after too much expansion
Colorado Springs-based Century Casinos was on a mission. It wanted to expand rapidly and opened a new casino in Bath, England and was working on reopening two of its casinos in Poland. Those plans may have been a little too ambitious, as the company saw its earnings fall substantially in the third quarter.
According to a press release by Century, third-quarter earnings were down almost 80% year-on-year. The company took in $1.64 million - equivalent to $0.05 per share - because "operations in Bath ramped up slower than expected." It added that the reopening of the casinos in Poland was significantly delayed, which also contributed to the low numbers.
Adding to the dismal year-on-year comparison, the casino operator's third-quarter earnings for last year were inflated by $5.1 million. This was due to a change in the corporate tax rate that was introduced in late 2017.
Revenue for the quarter, however, came in at $43.6 million, an increase of 6% over last year. For the first three quarters of 2018, profits were down a combined 75%. Century took in $2.89 million, or $0.10 per share, against an 8% increase in revenue.
The companies co-CEOS, Erwin Haitzmann and Peter Hoetzinger, stated, "We are excited for the 2019 outlook with the Century Mile project continuing to trend on-time and on-budget for an April 2019 opening."
Century operates seven casinos in Colorado, Canada and the UK. It owns 67% of Casinos Poland, which operates seven casinos in the country. It also operates several casinos on cruise ships for four companies, Windstar, TUI, Diamond Cruise International and Marella.