Century Casinos Inc. joins the list of gaming companies reporting a decline in revenue during the first fiscal quarter of the year. Peter Hoetzinger, Co-CEO of Century Casinos, walked shareholders through the company’s first-quarter earnings today on a conference call.
The Colorado Springs-based company earned $87.7 million in revenue between January and March. By March 17, its casinos around the world were closed in response to COVID-19 protocols. The closures in March cost the company an estimated $18.2 million in operating revenue. In total, Century Casinos lost $45.9 million during the first quarter of 2020.
The management team noted in a presentation to shareholders the coronavirus pandemic will have a negative impact on second quarter results this year as well. Century Casinos Inc. borrowed an additional $17.4 million in credit to finance operating activities for the remainder of the year. The company is spending approximately $8 million per month to operate while its properties are closed.
Reopening Around the World
Century Casinos has a controlling stake in seven casinos in Poland, which reopened this past Monday, May 18. Its properties in Canada are expected to reopen in mid-June. The company plans to reopen its U.S. properties in West Virginia, Missouri, and Colorado over the course of the next month. Century estimates total reopening costs to reach $19.8 million.
Century Casino Bath in England will remain closed permanently. Four of the company’s ship-based casino ventures with TUI Cruises will not reopen. The concession agreement for the cruise ship casinos expired on May 12, 2020.
Despite the decline in casino revenue, Century has continued to invest in developing online gaming products. Recently, the company announced a new partnership with Bet365 to launch a mobile app for sports betting in Colorado.