The global Covid-19 pandemic has been an unprecedented shock to the system for many people and businesses around the world.
But there are few companies that have been hit harder than those in the gaming and hospitality industry.
So as Century Casinos announces its financial results for the entire year of 2020, plus the remaining quarter of the year, we take a closer look at how the company has been affected by almost one year of disruption and adjusted measures during the health crisis.
Overall, in terms of revenue, the organisation has actually experienced a positive trend and an increase of almost forty percent compared with the previous year.
This means that the company took over $300 million for the entire year, which was almost entirely dominated by the Coronavirus pandemic.
Property closures and acquisitions
During the year, Century Casinos acquired a number of properties throughout the year, which undoubtedly affected the results in conjunction with the pandemic. These acquisitions included Century Casino Caruthersville, Mountaineer Casino, Racetrack & Resort and Century Casino Cape Girardeau.
Towards the end of the year, the company felt the pinch more so in relation to the pandemic due to the closure of its properties as part of prevention measures to stop the spread of the virus. These closures were put in place by government authorities and officials around the world.
Although due to each country implementing measures at different times, operating revenue in casinos and gaming venues in individual countries varied throughout the year, including Canada and Poland.
In addition to multiple acquisitions during the global pandemic, a move unheard of by many businesses, Century Casinos also sold the casino operations of Century Casino Calgary for $6.5 million but kept hold of the real estate, in which it agreed to lease to the casino operator. However, the firm has stated that it will be selling the real estate later this year.
Co-Chief Executive Officers of Century Casinos Erwin Haitzmann and Peter Hoetzinger commented on the past year and how operations have been affected:
We are pleased with the strong Adjusted EBITDA for the fourth quarter even though our casinos in Canada and Poland were closed in December over the busy holiday season.
These results were driven primarily by our properties in the US, which generated 82% of our Adjusted EBITDA in the fourth quarter.
We have been able to achieve operating margins that we believe will continue to be attainable.
We look forward to our casinos and racetracks reopening in Canada and to a busy summer season in North America if the pandemic subsides
Going forward through the second, third and fourth quarters of 2021, Century Casinos has stated that the firm has been adversely affected by the pandemic last year and it anticipates that there will still be visible impact this year.
Many of the organisations casino and betting properties remain closed and will not be re-opening until around the middle of the year, including venues in Colorado, Missouri, West Virginia and Edmonton.
When casinos are given the green-light to re-open, along with many businesses in the gaming and hospitality industry, it is expected that a series of health and safety measures will remain in place as part of caution and prevention to reduce the chances of another spike in the virus. These measures may include physical distancing, face coverings, limited hours of operation on the casino floor and reduced capacity.
Until the organisation is fully operational and all properties are re-opened, it is unclear whether any long term impact will be felt or that future closures will be required.