Century Casinos hopes that a trio of Eldorado Resorts acquisitions will pay dividends once the multi-faceted deal is finalised, as the company reports a solid performance in the third quarter.
Earlier this year, the gaming company entered into a $107 m agreement to purchase Missouri’s Isle Casino Cape Girardeau and Lady Luck Caruthersville operations, as well as the Mountaineer Casino which received approval from last month’s West Virginia Lottery Commission.
At the same time as the acquisition is closed, Vici Properties will acquire the three properties ‘ real estate assets for approximately $278 million, with Century subsequently entering into a triple net lease agreement for the three casinos.
The lease will have an initial annual rent of approximately $25 million and an initial 15-year term, with four renewal options for five years. It is expected that the transaction will close by year-end.
In addition to the purchase update, Century Casinos also reported a 22% increase in operating revenue for Q3 to $52.9 m (2018: $43.5 m), driven by a dominant performance across its Canadian properties.
In the country Century saw revenue coming in at $22 million, a 41 percent increase from $15.6 million, followed by a 22 percent increase across its Polish properties to $20.3 million (2018: $16.7 million) and a slight 2 percent decrease in the US to $9.1 million (2018: $9.3 million).
Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos said: “Operations at Century Mile continue to ramp up and we are pleased with the revenue generated at the property, which is in line with our expectations.
“We continue to analyse the cost structure, staffing levels and efficiencies of Century Mile to achieve the margins we expect, which is normal during the first phase of operations. We look forward to closing the Eldorado acquisition and see some short-term low-cost measures that we can implement to improve performance.”