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Century Casinos reports 2006 earnings

COLORADO SPRINGS, Colorado – (PRESS RELEASE) -- For the quarter ended December 31, 2006, Century Casinos, Inc. (Nasdaq: CNTY; Vienna Stock Exchange) 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.

Current Period Acquisitions and Other Recent Developments

The Company opened its Century Casino in Edmonton, Canada on November 17, 2006 and a new facility for its Century Casino in Newcastle, South Africa, on December 2, 2006. The Company acquired 100% of G5 SP.z.o.o a Polish company on March 12, 2007 which holds 33.3% of all issued and outstanding shares of Casinos Poland Ltd.

Caledon

Three months ended December 31, 2006 vs. 2005

Caledon's casino revenue increased 3.8% to $3,901,000 for the fourth quarter of 2006 compared to $3,759,000 reported in the fourth quarter of 2005. A deterioration of the Rand, quarter over quarter, has had a significant impact on the results reported in dollars. Casino revenue, in Rand, increased by 16.4% to R28,417,000 compared to R24,413,000 in the fourth quarter of 2005 primarily from slot machine win. Casino expenses in Rand increased 35.0% from the fourth quarter of 2005 to the fourth quarter of 2006 primarily the result of incremental fees on gaming revenues. General and administrative expense for Caledon decreased 12.8% to R3,654,000 in this quarter when compared to the fourth quarter of 2005. Casino operating margins**, excluding the effect in the Rand/Dollar conversion rate, were 55.2% for the three months ended December 31, 2006 compared to 61.4% for the same period in 2005. Depreciation expense increased R484,000 period over period. Net earnings in the fourth quarter of 2006 were $908,000 compared to $1,073,000 in the fourth quarter of 2005, or a 15.4% decrease primarily the result of dividends issued to a preference shareholder totaling $138,000. Caledon's adjusted EBITDA* for the fourth quarter of 2006 was $1,910,000 compared to $1,814,000 in the fourth quarter of 2005, a 5.3% increase.

Twelve months ended December 31, 2006 vs. 2005

Caledon's casino revenue increased by 7.4% for the twelve months ended December 2006 to $15,632,000 compared to $14,549,000 in 2005. The casino revenue, in Rand, increased by 14.9%, year over year. Casino expenses, in Rand, increased by R6,281,000, or 17.6% during 2006 compared to 2005. General and administrative expense for Caledon was R17,844,000 for the twelve months ended December 31, 2006 and R16,443,000 for the same 2005 period, an increase of 11.2%. Casino operating margins**, excluding the effect in the Rand/Dollar conversion rate, deteriorated slightly to 59.3% for the twelve months ended December 31, 2006 from 61.2% for the same period in 2005. Net earnings for 2006 were $3,816,000 compared to $3,132,000 in 2005, a 21.8% increase. In 2006 Caledon net earnings are reduced by preferred dividends totaling $138,000. No preferred dividends were paid in 2005. Caledon's adjusted EBITDA* for the twelve months ended December 31, 2006 was $7,539,000 compared to $6,692,000 in 2005, a 12.7% increase.

Womacks

Three months ended December 31, 2006 vs. 2005

Womacks' net operating revenue decreased to $3,722,000, or 3.6%, for the fourth quarter of 2006 compared to $3,861,000 reported for the same period in 2005. Total operating expenses increased $55,000, or 1.8%, to $3,099,000 in the fourth quarter of 2006 from $3,044,000 in the fourth quarter of 2005. Casino operating margins** were 56.9% for the fourth quarter of 2006 compared to 65.4% for the same 2005 quarter due primarily to $176,000 in slot game conversions in the fourth quarter of 2006. Net earnings reported for Womacks in the fourth quarter of 2006 were $342,000 compared to $542,000 in the fourth quarter of 2005. Womacks' adjusted EBITDA* for the fourth quarter of 2006 was $1,018,000 compared to $1,230,000 in the fourth quarter of 2005.

Twelve months ended December 31, 2006 vs. 2005

Womacks' casino revenue was $17,860,000 for 2006 compared to $18,934,000 in 2005, a decrease of 5.7%. Casino expenses decreased 8.0% from $6,514,000 in 2005 to $5,991,000 in 2006. General and administrative expenses decreased marginally to $3,591,000 for the twelve months ended December 31, 2006 from $3,619,000 for the twelve months ended December 31, 2005. Depreciation was $1,606,000 compared to $1,703,000 for the twelve months ended December 31, 2006 and 2005, respectively. Casino operating margins** were 66.5% for the twelve months ended December 31, 2006 compared to 65.6% for the same period in 2005. Net earnings reported for Womacks for 2006 were $2,563,000 compared to $3,055,000 in 2005, a 16.1% decrease. Womacks' adjusted EBITDA* for the twelve months ended December 31, 2006 was $6,104,000 compared to $6,359,000 in 2005.

As previously reported, effective August 1, 2006, the Company hired Sam Cocharo as the new general manager of Womacks. Mr. Cocharo has over 14 years of casino management experience in the state of Colorado, most recently serving as an assistant general manager of a large casino in Black Hawk, Colorado. In addition, there were a number of other changes made in key management positions during the third quarter.

Newcastle, South Africa

Three months ended December 31, 2006

For the three months ended December 31, 2006, net operating revenues at this facility were $2,245,000. Casino operating margins** were 62.4%, generally consistent with our other South Africa property. The Newcastle operation provided the Company with net earnings of $347,000 for the quarter ended December 31, 2006. The impact of pre-opening expenses for the new property in Newcastle on net earnings was $226,000 in the fourth quarter of 2006. Newcastle's adjusted EBITDA* for the fourth quarter of 2006 was $601,000.

April 1, 2006 to December 31, 2006 As previously mentioned, on April 1, 2006, the Company acquired a 60% controlling interest in Century Casino Newcastle (previously named the Monte Vista Casino) located in Newcastle, South Africa. For the period April 1, 2006 through December 31, 2006, net operating revenues at this facility were $6,176,000. Casino operating margins** were 61.4%. The Newcastle operation provided the Company with net earnings of $906,000 for the period April 1, 2006 through December 31, 2006. The impact of pre-opening expenses for the new property in Newcastle on net earnings was $226,000 in 2006. Newcastle's adjusted EBITDA* for the period April 1, 2006 through December 31, 2006 was $1,884,000.

Central City, Colorado

Three months ended December 31, 2006

For the three months ended December 31, 2006, net operating revenues at this facility were $3,926,000. Casino operating margins** were 61.5%, in line with those achieved at our other Colorado property. The Central City operation reported a net loss of $370,000 for the quarter ended December 31, 2006. Although revenues have not yet met our expectations, gaming revenue has grown consistently since opening and Central City recorded an increase of $437,000 in gaming revenues over the opening quarter despite poor weather conditions and a traditionally slower quarter in Colorado. Central City's adjusted EBITDA* for the fourth quarter of 2006 was a negative $152,000.

Six months ended December 31, 2006

For the six months of operations, net operating revenues at this facility were $8,617,000. Casino operating margins** were 54.0%, primarily due to additional cost associated with opening the casino in July 2006. Central City did write off $567,000 worth of equipment that was deemed unsuitable for the local market. Central City's adjusted EBITDA* for the six months it was in operation in 2006 was a negative $256,000.

Edmonton, Alberta, Canada

Three months ended December 31, 2006

Edmonton reported $2,322,000 in net operating revenue since opening on November 17, 2006. Casino operating margins** were 20.7% in the fourth quarter of 2006 primarily due to pre-opening costs. Edmonton reported a net loss of $894,000 in the fourth quarter 2006. The impact of pre-opening expenses on net earnings in Edmonton was $1,023,000 for the quarter ended December 31, 2006. We are in the process of reviewing the cost and staffing structure of the operation to bring them in line with current revenue levels.

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