Century Casinos' revenue falls in Colorado

Century Casinos Inc. blamed Colorado's Jan. 1 ban on smoking in casinos, a slowing economy and higher fuel prices for falling revenue at its Colorado casinos during the first three months of the year.

Colorado Springs-based Century owns Womacks Casino in Cripple Creek and Century Casino in Central City, as well as casinos in Canada and South Africa.

The company also owns stakes in or operates casinos in the Czech Republic and Poland and aboard cruise ships.

Revenue after promotional costs fell 0.8 percent from a year ago to $21 million as declining revenue at Womacks offset gains from the company's Canadian casino. As a result, earnings fell by nearly two-thirds from a year ago to $541,000, or 2 cents a share.

Increased charges for depreciation and stock options and a $162,500 payment to its lender for failing to meet loan covenants also cut profits.

"We are pleased with the growth at our Canadian operation, but we face significant challenges at our Colorado operations in light of the economic downturn and the smoking ban," said Erwin Haitzmann and Peter Hoetzinger, the company's cochief executives.

Revenue at Womacks declined 29 percent from a year earlier, or more than twice the average for all Cripple Creek casinos, Century said.

Womacks has not won back customers lost during a remodeling completed in January, said Larry Hannappel, a Century spokesman.

"We have to do more on the marketing side to get (those customers) back," Hannappel said. A casino that will be Cripple Creek's largest, scheduled to open this month, "will be our next challenge."

While Century's earnings matched what stock analysts forecast, its revenue fell more than $1 million short of analysts' consensus forecast.

As a result, Century shares fell 13 cents, or 3.3 percent, to $3.87 in trading Monday on the Nasdaq Stock Market.

CONTACT THE WRITER: 636-0234 or wayneh@gazette.com