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Canada – Growth on the cards as Century spreads its wings

By - 8 August 2017

With two new casinos only opening towards the end of the quarter, it was organic growth that saw Century Casinos Increase its net operating revenue by six per cent to $37.3m for the three ended June 30, 2017.

The two new revenue streams came in June with the opening of the casino in the Hilton Warsaw Hotel and Conference Centre in Warsaw, Poland, and in May when Century began operating the ship-based casino onboard the Mein Schiff 6.

Added to this, June also saw Century buy the casino license held by Saw Close Casino, which will allow it to develop and operate a casino in Bath, England. The Company estimates that the project will cost approximately $7.5m and that the casino will open in the first half of 2018, subject to the receipt of certain regulatory and governmental approvals.
The second quarter saw earnings from operations were $3.6m, a decrease of 20 per cent from the three months ended June 30, 2016.

In October 2016, Century acquired the Apex Casino in suburban Edmonton, Alberta, Canada. Century Casino St. Albert contributed $2.1m in net operating revenue and $0.3m in net earnings for the three months ended June 30, 2017 and $4.1m in net operating revenue and $0.3m in net earnings for the six months ended June 30, 2017.

In September 2016, the company was selected as the successful applicant by Horse Racing Alberta to own, build and operate a horse racing facility in the Edmonton market area, which the Company will operate as Century Mile Racetrack and Casino. Century Mile will be a one-mile horse racetrack and multi-level racing and entertainment center, which will include a gaming floor with slot machines as well as food and beverage outlets. The project is located on EdmontonInternational Airport land close to the city of Leduc, just south of Edmonton and positioned off Queen Elizabeth II Highway. The Company estimates that the project will cost approximately $46.2m. Construction on the Century Mile project began in July 2017. The Company estimates that construction of this project will take approximately 15 months and that it will be completed by the fourth quarter of 2018. The Company is seeking to obtain financing for the Century Mile project.

Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said: “In local currencies, net operating revenue increased by 11 per cent in Canada, three per cent in the United States and four per cent in Poland. While those increases were in line with our expectations, earnings and operating margins declined overall. Earnings were impacted by one-time expenses related to the opening of the new casino at the Hilton Warsaw Hotel and the acquisition of Saw Close Casino Ltd. for our new casino in Bath, England. We are very pleased with the development progress at Century Mile Racetrack and Casino in Edmonton, Canada as well as at the Saw Close Casino project.”

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