Century Casinos Reports Q1 2009 Results

Century Casinos, Inc. (Nasdaq: CNTY, Vienna Stock Exchange) announced today the financial results for the three months ended March 31, 2009.

For the first quarter of 2009, net operating revenue from continuing operations was $11,999,000 (operating results from discontinued operations have been excluded from this discussion) and consolidated Adjusted EBITDA* was $2,099,000. This represents an 11% decrease in net operating revenue from continuing operations over the same quarter of last year ($13,530,000 in the first quarter of 2008) and an 8% increase in consolidated Adjusted EBITDA* ($1,947,000 in the first quarter of 2008). We experienced a decline in net operating revenue at our properties in Colorado, primarily due to a decrease in our market share of the Cripple Creek, Colorado gaming market (at Womacks) and a decline in the overall gaming market in Central City, Colorado (at the Century Casino and Hotel). Net operating revenue in Edmonton, as reported in U.S. dollars, was 14% lower than the same period in 2008 but increased by 7% in the local currency (Canadian dollar). The reported results were negatively affected by a 24% decrease in the average exchange rate between the U.S. dollar and Canadian dollar in the first quarter of 2009 compared to the first quarter of 2008. Operating earnings from continuing operations increased to $176,000 in the first quarter of 2009 compared to a loss of $66,000 in the first quarter of 2008.

The Company reported a loss from continuing operations of $1,473,000, or ($0.07) per basic and fully diluted share for the first quarter of 2009. The Company reported a loss from continuing operations of $568,000, or ($0.02) per basic and fully diluted share, for the first quarter of 2008. Foreign currency losses reduced basic and fully diluted earnings per share by $0.02 for the first quarter of 2009 and foreign currency gains increased basic and fully diluted earnings per share by $0.01 for the first quarter of 2008. During the third quarter of 2008, the Company established a valuation allowance on its U.S. deferred taxes. The tax effect on net operating income or losses incurred in the U.S. will reduce or increase this valuation allowance. As a result, during the first quarter of 2009, the Company did not recognize tax benefits of $500,000 on operating losses incurred in the U.S. The Company has accumulated deferred tax assets of $4.2 million which can be applied against the tax on potential future US income.

Including discontinued operations, the Company reported net earnings of $345,000, or $0.01 per basic and fully diluted share, for the first quarter of 2009. During the first quarter of 2009, the Company reported a gain of $877,000, or $0.04 per basic and fully diluted share, on the previously reported disposition of the Century Casino Millennium. The Company reported net earnings of $541,000, or $0.02 per basic and fully diluted share, for the first quarter of 2008.

Update on sale of Century Casino Africa

On December 19, 2008, the Company through a subsidiary, entered into an agreement to sell all of the outstanding shares of Century Casinos Africa (Pty) Limited ("CCA") for a gross selling price of ZAR 460.0 million ($48.3 million) less the balance of third party South African debt and other agreed to amounts. Net proceeds from the transaction are expected to be approximately ZAR 357.3 million ($37.5 million) and are payable at closing, which is expected to occur towards the end of the first half of 2009. CCA owns the Caledon Hotel, Spa & Casino and 60% of the Century Casino & Hotel in Newcastle, South Africa. On April 24, 2009, the Competition Tribunal of South Africa approved the transaction. The closing of the transaction is still subject to approval by the Western Cape Gambling and Racing Board and the KwaZulu-Natal Gambling Board.

The Company's discontinued operations had a combined carrying value of approximately $23,509,000 at March 31, 2009. Net operating revenue of our discontinued operations was $5,330,000 and $7,450,000 for the first quarter of 2009 and 2008, respectively. Earnings from discontinued operations were $1,818,000 and $1,109,000 for the first quarter of 2009 and 2008, respectively, including an $877,000 gain on the sale of Century Casino Millennium.

Property Results (Continuing Operations)

Century Casino & Hotel (Edmonton, Alberta, Canada) - Net operating revenue at the Century Casino & Hotel in Edmonton decreased by 14% to $4,796,000 for the first quarter of 2009 compared to $5,557,000 for the first quarter of 2008, due to a decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, net operating revenue increased by 7% to $5,970,000 for the first quarter of 2009 compared to $5,579,000 for the first quarter of 2008. This increase is the result of an increase of 15.7% in table revenue and an increase in slot revenue of 1.5%. Adjusted EBITDA* was $1,775,000 for the first quarter of 2009 and $1,912,000 for the first quarter of 2008, a decrease of 7%, which can also be attributed to the decline in the average exchange rate between the U.S. dollar and the Canadian dollar. In Canadian dollars, Adjusted EBITDA* increased by 15%, from CAD 1,917,000 for the three months ended March 31, 2008 to CAD 2,208,000 for the three months ended March 31, 2009.

Womacks Casino (Cripple Creek, Colorado, USA) - Net operating revenue at Womacks Casino in Cripple Creek, Colorado decreased 10.8% to $2,572,000 for the first quarter of 2009 from $2,882,000 for the first quarter of 2008. This represents an 18.5% decrease in the market share while our share of the slot machines in the Cripple Creek market declined by 19.7%. The Company is reviewing strategies to improve revenue at Womacks and has reduced staffing levels at the casino. Womacks' Adjusted EBITDA* for the first quarter of 2009 was $494,000 compared to $279,000 in the first quarter of 2008, an increase of 77%. The increase is primarily due to cost cutting measures at the casino.

Century Casino and Hotel (Central City, Colorado, USA) - Net operating revenue at the Century Casino and Hotel in Central City decreased 6% to $4,163,000 for the first quarter of 2009 compared to $4,407,000 reported for the first quarter of 2008. The Central City gaming market as a whole declined 9.5%. Adjusted EBITDA* for the Century Casino & Hotel in Central City for the first quarter of 2009 increased to $1,063,000 compared to $835,000 in the first quarter of 2008, a 27% increase. As with Womacks, the increase in Adjusted EBITDA* is primarily due to cost cutting measures at the casino.

Cruise Ships - The Company's ship-based casinos contributed net operating revenue of $468,000 and Adjusted EBITDA* of $58,000 for the first quarter of 2009 compared to net operating revenue of $683,000 and Adjusted EBITDA* of $150,000 for the first quarter of 2008. Management believes that reduced occupancy levels on the ships can be attributed to the general downturn in the global economy which also led casino guests to spend less per visit, however management believes that a 10% increase in passenger visitation to the casino is attributable to targeted marketing efforts. Management believes that 30% fewer gaming days on the Silvercloud during the three months ended March 31, 2009, compared to the three months ended March 31, 2008, negatively impacted our gaming revenue.

On November 24, 2008, we entered into an exclusive, long-term agreement with TUI Cruises GmbH ("TUI") whereby we were selected by TUI to operate casinos on all cruise ships that TUI will put into service before December 31, 2012. The first vessel is anticipated to go into service in May 2009.

Corporate - Corporate operations reported negative Adjusted EBITDA* of $1,291,000 for the first quarter of 2009 compared to negative Adjusted EBITDA* of $1,229,000 for the first quarter of 2008. The decrease in Adjusted EBITDA* is primarily due to a decline in earnings recorded from our equity investment in Casinos Poland of $371,000, offset by a decrease in general and administrative expenses of $309,000. Our earnings from Casinos Poland declined due to a below average hold in the month of February 2009 and a decline in the average exchange rate between the between the U.S. dollar and Polish zloty of 44.8% when comparing the first quarter of 2008 to the first quarter of 2009.

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