On 30 September 2014, the Company will delist from the Vienna Stock Exchange, and will be listed only on NASDAQ from then on. Does this signal a shift in focus by the Company towards North American projects?
We look for opportunities in any regulated market world-wide. With our existing portfolio of 30 casino resorts in Europe, Canada, USA, Caribbean and on luxury cruise vessels, we have an international management team in place that is experienced and flexible to undertake projects of various sizes and in full or part ownership capacity as well as under management contracts.
The NASDAQ is the benchmark index for technology companies. Does a sole listing on NASDAQ indicate a greater focus by Century Casinos on adding technology solutions to your land-based operations, such as mobile and social casino?
We have been listed on NASDAQ since 1994. Yes, we do use technology solutions to promote our land-based casinos and we offer social gaming on our websites, but our main focus continues to be the development and operation of mid-size casino resorts.
Can you provide details on how 2013 and the first half of this year have been for the corporation financially?
We generated a compound annual growth rate of revenues of 30% over the last 20+ years. During 2013, we made significant progress with the implementation of our strategy to increase shareholder value and improve our financial flexibility. Revenues increased by 46% year-over-year and Net Profit by 51%! In the first half of 2014, we continued our international growth, increasing revenue by another 31%.
That great operational performance, coupled with our healthy balance sheet, puts us in a great position to continue the pursuit of new development and acquisition opportunities world-wide.
What innovations in Casino operations in recent years have most impressed you and why?
I am most impressed – but not surprised – that despite all the technological innovations, the real differentiating factor continues to be great, personalized customer service.
Our management style and international diversity help to attract great staff and cooperators; today we employ over 1,600 people from 32 nationalities, 51% female. The experience and diversity of our people enable us to cater specifically to each local and tourist market, giving all our casino resorts that special, local flavor and character.
Our casinos also help stimulate tourism by providing additional entertainment options and by marketing and promoting a specific market or region to our best customers at all our other casinos around the world and on the luxury cruise ships.
Century Casino Central City named for a 3rd consecutive year best Casino in Denver. One of the contributing reasons given for the sustained popularity is that it offers 500 of the latest and most popular slot machines. How often do you upgrade your Slot machines at Century Casinos and can you provide details, which manufacturers are amongst the top performers.
Two main reasons: we enjoy an outstanding reputation for the quality of hospitality and guest service as well as the convenience of our casino and hotel product, plus we offer 500 of the latest and most popular slot machines. We replace approx. 20% to 25% of the total slots every year; half through participation and half through conversions and new purchases. Currently, Aristocrat and Konami are amongst our top performing machines in Colorado.
Are there plans for Century Casinos to expand on the Seven Seas?
We currently operate casinos on 16 luxury cruise lines and we will add a couple of ships in early 2015. This is a profitable niche for us that accounts for approximately ten percent of our total business volume.
In Century Casinos' most recent quarterly results, the strongest performing property was the Century Casino and Hotel in Edmonton, Alberta. Does this strong performance bode well for your Century Downs Racetrack and Casino project in Calgary, which is also in Alberta?
The Canadian province of Alberta provides a fantastic regulatory and economic environment. The job growth, especially in the oil and gas industry, leads to a growing and increasingly wealthy population with high discretionary income, in fact Alberta’s median income level is 24% above Canada’s national average and Alberta has the fastest population growth rate of any Canadian province. And Albertans have an above average propensity to play casino games relative to the rest of Canada. All this bodes very well for the future of our existing two casino resorts there as well as for our newest project, the $25 million Century Downs Racetrack and Casino in Calgary, which is scheduled to open in March 2015.
Century Downs Racetrack and Casino will be just 4.5 miles (7km) from Calgary International Airport. Does the proximity of an international airport indicate Century Downs will target non-local customers and what will make this property special?
In the greater Calgary area, the North and North-West areas have no casino conveniently located for them. Century Downs Racetrack and Casino will fill this void with a great location on the Queen Elisabeth highway next to the very successful Cross Iron Mills regional shopping mall and the planned New Horizon Mall, which will mainly focus on Asian customers. The proximity to the airport also provides the opportunity to cater to tourists visiting attractions such as Banff National Park or ski resorts such as Banff or Lake Louise. Century Downs will be the only horse race track in the greater Calgary area and will offer a racing entertainment center with 550 slot machines, restaurants, bars and entertainment and off-track-betting lounges.
Looking beyond 2015, what markets and/or projects would Century Casinos like to become involved in?
Today we own/operate 30 casino resorts in Europe, Canada, USA, Caribbean and onboard luxury cruise ships, offering a wide variety of popular gaming tables and machines, hotels, restaurants, bars, show-lounges, sports and concert venues and a comedy club.
Next year we will add the Racetrack and Casino in Calgary. In addition, see substantial organic growth opportunities at our larger properties in the USA and Canada, as well as in Poland.
Our focus for new projects lies in South America and Asia. Argentina offers great opportunities at reasonable price levels and Japan is a market we are particularly interested in, as our operating model and stimulus for international tourism seems very well suited for that market.
