Century Casinos, Inc. last week reported record net operating revenues of $21,144,000 for the quarter ended March 31, 2007, compared to revenues of $9,474,000 for the quarter ended March 31, 2006.
Casino revenue increased by $10,827,000 or 118% for the quarter ended March 31, 2007 over the same 2006 period, primarily due to the acquisition of a 60% majority interest of a casino operation in South Africa, the opening of the casino in Central City, Colorado, the opening of the casino in Edmonton, Alberta, Canada and improved revenues at its casino in Cripple Creek, Colorado.
Adjusted EBITDA for the first quarter of 2007 was $5,206,000 compared to $2,388,000 in the first quarter of 2006, a 118% increase.
Although Century Casinos reported revenue growth at its casino in Cripple Creek, when comparing the first quarter of 2007 to the same quarter in 2006, management believes that a string of severe winter storms affected business for approximately seven straight weeks beginning in December 2006 and ending in January 2007, causing a negative impact on the revenues at both of our Colorado casinos and consequently had a negative impact on reported earnings and adjusted EBITDA.
Net operating revenue at Womacks Casino in Cripple Creek increased to $4,059,000, or 5.8%, for the first quarter of 2007 compared to $3,836,000 reported for the same period in 2006.
Despite the quarter-over-quarter increase in net operating revenue, management believes that January 2007 revenues were negatively impacted by a series of winter storms that began in late December 2006 and continued in January 2007.
Total operating expenses increased $349,000, or 12.4%, to $3,155,000 in the first quarter of 2007 from $2,806,000 in the first quarter of 2006.
Century opened a casino and hotel in Central City on July 11, 2006. Prior to July 11, 2006, operating expenses consisted primarily of pre-opening and non-capitalizable construction expenses. For the three months ended March 31, 2007, net operating revenue at this facility was $4,515,000.
Although revenues have not yet met Century’s expectations, gaming revenue has grown consistently since opening despite poor weather conditions in January.