Century Casinos May Pursue More US M&A, Poland Sale Delays Possible

Century Casinos (NASDAQ:CNTY) is undecided to to a greater extent domestic acquisitions, though the regional casino operator is potential to encounter delays inward its efforts to molt its Casinos Poland unit.

The Colorado-based keep company is in the thick of working through the $195 jillion acquisition of the Nugget Sparks cassino and a 50% interest in the real estate unshakable that owns the holding assets of that gaming venue. Announced inward February, that transaction marks Century’s entry into Nevada.

On its recent first-quarter earnings group discussion call, Century discussed the brisken rate of consolidation talks in the house servant gaming industry, prompting some analysts to hypothesise the manipulator could purchase another locale before the cease of this year.

Management highlighted a surprisingly fighting(a) M&A market place in the US, with possible for another acquisition in the coming quarters,” said Stifel psychoanalyst Jeffrey Stantial.

He rates the stock up a “buy” with a $20 toll target, implying the shares put up nearly two-baser from the May 6 close.

Poland Problems

While many US companies are discussing the impact of Russia’s war against Ukrayina on every quarter conference calls, that trend mostly isn’t applicable inward the gaming manufacture because most US casino operators don’t have got footprints inward Eastern Europe.

With its two-thirds wager inward Casinos Poland, Century is an exception. The keep company announced in January 2021 that it’s looking for to divest that interest, but no more business deal has been reached. Now, those efforts are being delayed due to the Russia/Ukraine conflict.

“Conversely, the long-awaited Republic of Poland sale remains complicated amidst geopolitical uncertainness in the region,” adds Stantial.

Even with unrest inward the region, Casinos Poland’s first-quarter results were in-line with Wall Street forecasts, but Century acknowledges it’s tricky finding a vendee due to the war.

“Poland sales agreement as a likely positively charged accelerator for the shares — even out if timing is pushed come out beyond our initial expectations,” notes the Stifel analyst.

Potential Targets for Century

Given Century’s caterpillar track book of getting under-appreciated assets inwards regional markets, it’s unlikely the manipulator goes shopping on the Las Vegas Strip, but on the group discussion call, management didn’t point out on specific markets on properties it could go on inwards the future.

“While the give inward the public markets hasn’t seen prices come inward at all, according to management, CNTY still sees attractive opportunities that would scene their operating strategy,” says Stantial. “Based on management’s tone, we opine we could view another trade proclaimed hither in the coming quarters.”

At the finish of the firstly quarter, Century had $117.2 million inward cash in and cash in equivalents, up from $107.8 million at the remainder of utmost year. The troupe is also I of the most fertile generators of free hard cash flowing inward the gaming industry, indicating it has the resources for bolt-on deals.

When the Nugget Sparks sell is completed, Century will control Nina from Carolina casinos inward the US and Canada.