Century Casinos Reports 2006 Earnings

For the quarter ended December 31, 2006, Century Casinos Inc. increased net earnings by 63.7% compared to the same quarter in 2005. Net earnings were $2,757,000, or $0.12 per basic share for the quarter ended December 31, 2006, compared to net earnings of $1,684,000, or $0.08 per basic share for the same period in 2005.

The average weighted number of common shares outstanding was 22,990,958 for the quarter ended December 31, 2006 compared to 21,527,748 for the same period in 2005. Adjusted EBITDA* for the fourth quarter of 2006 was $5,013,000 compared to $2,189,000 in the fourth quarter of 2005, a 129% increase. Casino revenue increased by $9,011,000 in the quarter ended December 31, 2006, or 102.2%, over the same 2005 period, primarily due to the acquisition of a 60% majority interest of a casino operation in Newcastle, South Africa on April 1, 2006, the opening of the casino in Central City, Colorado on July 11, 2006, the opening of the casino in Edmonton, Alberta, Canada on November 17, 2006 and continued strong performance of our Caledon, South Africa subsidiary.

The Company absorbed $1,299,000 in pre-tax write-offs of equipment deemed obsolete or unsuitable for our operations at various properties, the remaining value of property held for sale in Nevada and the goodwill for Century Casino Millennium. In the most recent quarter, the Company recognized $5,231,000 in pre-tax income on the sale of its interest in Gauteng, South Africa. Interest expense on non-capitalizable debt increased $959,000 primarily due to the interest charges on bank debt agreements that funded the construction of the casinos that opened in the third and fourth quarters of 2006.

For the quarter ended December 31, 2006, the Company reported net operating revenue of $17,964,000, a 93.6% increase over the $9,279,000 reported in the same 2005 period. The loss from operations was $2,000,000 in the fourth quarter of 2006 compared to earnings from operations of $1,465,000 in the fourth quarter of 2005.

The loss from operation in the fourth quarter of 2006 primarily results from $1,848,000 in pre-opening expenses for the two casinos that opened during the period and $1,299,000 in write-offs. On a company-wide basis, casino operating margins** for the quarter ended December 31, 2006 were 54.5% compared to 59.9% for the same period in 2005 primarily due to pre-opening cost associated with opening casinos in Edmonton, Alberta Canada and Newcastle, South Africa. On a company-wide basis, hotel, food and beverage ("F&B") operating margins** for the quarter ended December 31, 2006 were a negative 2.0% compared to 37.7% for the same period in 2005 as a result of losses totaling $496,000 from ancillary services such as hotel, food and beverage and dinner theater in Central City, Colorado and Edmonton, Alberta, Canada.

The Company reported a 50.3% increase in net operating revenue to $56,285,000 for the twelve months ended December 31, 2006 from $37,445,000 in the same 2005 period. The Company reported earnings from operations of $3,250,000 in 2006 compared to $5,845,000 in 2005. The decrease in earnings from operations can be attributed to pre-opening expenses of $3,428,000 and net write-offs of $894,000 in 2006. For the twelve months ended December 31, 2006, the Company reported net earnings of $7,629,000, or $0.33 per basic share, compared to net earnings of $4,481,000, or $0.28 per basic share for the twelve months ended December 31, 2005, an increase of 70.3% in net earnings.

The increase is primarily due to the acquisition of our new casino operation in Newcastle, South Africa, the sale of our interest in Gauteng, South Africa and increased interest income, offset by the write-offs and pre-opening expenses. The average weighted number of common shares outstanding was 22,777,707 for the twelve months ended December 31, 2006 compared to 15,941,448 for the same period in 2005, primarily due to the Company's public offering of 7,132,667 shares in October 2005. Adjusted EBITDA* for the twelve month period was $13,559,000 in 2006 compared to $9,203,000 in the same 2005 period, a 47.3% increase. -- www.cnxmarketlink.com