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COLORADO SPRINGS, Colo.,
April 9, 2013 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) announced today that its subsidiary Century Casinos Europe GmbH signed the final share sale agreement with LOT Polish Airlines and closed on the transaction to purchase an additional 33.3% ownership interest in Casinos Poland Ltd ("CPL"). Century Casinos, Inc. now owns a 66.6% ownership interest in CPL.
CPL is the owner and operator of eight casinos throughout
Poland with a total of 317 slot machines and 77 gaming tables. As of the nine months ended
September 30, 2012, CPL had a 43% share of the Polish casino market and is currently participating in other pending license applications.
For the year ended
December 31, 2012, CPL recorded net operating revenue of
USD 44.0 million, EBITDA of
USD 4.5 million and net income of
USD 1.3 million (all based on average PLN to USD exchange rates for the same period).
"We are very pleased with the closing of this transaction, which represents another milestone in our company's history by significantly increasing our scale and diversity. We expect this acquisition to be immediately accretive and are very excited about the growth potential it brings for our company," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos. "The 'Casinos Poland' brand is exceptionally strong as demonstrated by a market share that consistently has been between 40% and 50% in recent years," they continued.
As of today, Century Casinos, Inc. will begin consolidating CPL as a majority-owned subsidiary with a controlling financial interest. The Company will account for and report the 33.3% owned by CPL's co-shareholder, State-owned Polish Airports, as a non-controlling financial interest. Consolidation of CPL will increase the Company's overall net operating revenue and operating costs and expense; the Company previously reported its interest in CPL under the equity method.