Century Casinos takes a major hit due to the coronavirus
The first-quarter performance for the casino operator saw losses of over $45 million
The outbreak of the coronavirus generated a similar response in most states: the closing down nonessential business and the issuance of stay-at-home orders for the residents. This action led to serious financial problems among major entertainment companies like casinos and other gambling venues. For instance, Century Casinos in Colorado has taken a major hit during this pandemic, losing over $45.9 million during the first quarter of operations this year after authorities forced the closure of casinos since mid-March.
It is a huge contrast for Century, which reported to have doubled its revenue from January to March due to the acquisition of three casinos in Missouri and West Virginia back in December. The total revenue reported for nearly three months was $87.7 million, but closures in March were beyond costly for the company. According to the report, most of the loss comes from a $33 million write-down the company got on the value of its casinos. Century paid most of its employees until the end of March, which resulted in a record loss. One year ago, the company had $1.07 million in profit or $0.04 per share, but this last quarter, it reported losses of $1.55 per share.
It’s not all bad news casino operators. This past Monday, the company was allowed to open its eight casinos in Poland. According to what Century Co-CEO Peter Hoetzinger told to stock analysts during a conference call, the plan is to reopen first the horse racing track located in West Virginia this Wednesday, followed by its casinos in Missouri and West Virginia in early June, its Colorado casinos in early June and, finally, the Canadian casinos in the second half of June. While the company recovers from closures, the gambling venues at Bath, England, and on four cruise ships will remain closed.