Century Gaming saw a 4% reduction in net operating income during the recent quarter, as indicated by the business’s most recent earnings statement.
The statement shows that Century Gaming generated $112.6 million in net operating income for the third quarter. Modified EBITDA was recorded as $28.1 million, a 15% decline compared to the corresponding period the previous year. Operating earnings for the three months concluding in September were $20 million, representing a 22% year-over-year reduction.
These numbers contributed to a 1.33% drop in Century Gaming’s share value in the five days preceding the statement’s publication.
Joint CEOs Erwin Haitzmann and Peter Hoetzinger ascribed the decline to robust financial results in 2021 and the effects of price increases in their remarks accompanying the statement.
“Both net operating income and Modified EBITDA decreased in the third quarter of 2022 compared to exceptional outcomes in 2021,” they noted. “These reductions were partly driven by the unprecedented outcomes in 2021 (bolstered by the easing of COVID-19 limitations in Missouri) and the influence of inflation and increased costs incurred at our Caruthersville riverboat property owing to shallow water levels in the Mississippi River.”
Despite the current decline, the corporation maintains a positive outlook. In August, Century Gaming made a substantial move by entering into a contract with Lakes Maryland Development, Golden Entertainment, and Vici Properties to purchase the Rocky Gap Casino Resort for $56.1 million.
During their third-quarter financial report, Heitzmann and Herchinger spoke about the arrangement, stating, “Back in August, we revealed a conclusive contract to purchase the Rocky Gap Casino Resort business. The opportunity to expand into the Maryland region and incorporate this establishment into our expanding American portfolio thrills us.”