CNTY ,,, Century Casinos Unit Denied License
Wednesday May 11, 3:34 pm ET
Century Casinos Shares Fall After Unit Denied License for Iowa Landmark Casino & Hotel
COLORADO SPRINGS, Colo. (AP) -- Shares of Century Casinos Inc., an operator of casinos in Colorado, South Africa, and the Czech Republic, slumped Wednesday after the company reported late Tuesday that its first-quarter earnings rose 11 percent, but then said its subsidiary was denied a casino license in Iowa.
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Shares of Century Casinos fell 85 cents, or 11 percent, to $6.84 in heavy afternoon trading on the Nasdaq, where the stock traded at close to six times its average daily trading volume.
Earlier Wednesday, the company said the Iowa Racing & Gaming Commission denied Landmark Gaming LC, its 40 percent-owned subsidiary, a license to develop and operate the proposed Landmark Casino & Hotel project in Franklin County, Iowa.
The proposed project, a moored barge casino, hotel and entertainment facility in the Mississippi riverboat style, was expected to record $72 million in revenue in its first year, according to a study prepared by Gaming & Resort Development Inc. Century anticipated $67 million in total capital costs for the project. The operations would have employed about 430 people.
The company's quarterly earnings rose to $1 million, or 6 cents per share, from $904,000, or 6 cents per share, a year earlier. Revenue rose 13 percent to $9.2 million from $8.2 million in 2004. Analysts surveyed by Thomson Financial had expected the company to earn 6 cents per share on revenue of $8.8 million.
Casino revenue increased 12 percent to $9.1 million from $8.1 million a year ago, while hotel, food and beverage revenue grew 26 percent to $1.2 million from 974,000. However, the company's total operating costs and expenses climbed 18 percent to $7.6 million from $6.4 million.
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