Century Casinos Announces Stock Purchase Plan
Breaking News: Century Casinos Set to Repurchase Stock in Millions
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In a bold move that could brighten the horizon for investors, Century Casinos (NASDAQ: CNTY) has announced its plans to initiate a share repurchase program – potentially worth millions of dollars. The revelation came during the company's first-quarter earnings conference call, according to Co-CEO Peter Hoetzinger.
Taking a slightly cautious approach, Hoetzinger stated, "The current climate is a bit uncertain compared to a quarter ago, but we believe CNTY offers the best casino investment with the highest growth potential out there. Hence, we're planning to buy back stock in the coming weeks."
Unlike typical corporate practices, the exact scale of the buyback plan hasn't been publicly disclosed. Hoetzinger, however, confirmed it will fall within the 'single-digit million dollar value.' It's worth noting companies aren't obligated to reveal the number of shares they intend to repurchase when announcing a repurchase program.
Timing is Everything
Investors have been eager for management to demonstrate faith in the struggling shares, with some even urging executives to personally invest. Despite not broadcasting the buyback plan widely, news of it is positive as Century Casinos won't be making the classic error of buying shares at excessively high prices. The stock has seen a 52.12% drop over the past 90 days and a 62% plunge in the past month, indicating it will be snapping up stocks at competitive prices.
"We anticipate starting the buyback before our next earnings release in early August," added Hoetzinger. Century Casinos concluded the first quarter with $85 million in cash and cash equivalents, providing ample funds for share repurchases.
Poland Asset Sales Still on the Table
A longstanding question regarding Century Casinos has been the sale of its two-thirds interest in Casinos Poland. Hoetzinger confirmed that the company remains committed to offloading its Poland operations. "Two new parties have emerged recently, and discussions with our minority partner are progressing well for potential sale of 100% of the company," said the co-chief executive officer. The interested parties were not named, but Hoetzinger added that some of these companies originate from the sports betting sector – a promising prospect for the expansion of commercial operators in Poland.
Stay tuned to the world of gaming and finance as we bring you more updates from the ever-evolving landscape of business!
- Century Casinos' decision to repurchase stock could attract investors, as the company believes that its casino investment offers the highest growth potential in the market, even amid uncertain financial circumstances.
- In light of the stock's recent decline, Century Casinos' share repurchase program, valued in the single-digit millions, could represent an advantageous opportunity for investors, as the company aims to buy back shares at competitive prices.
- As Century Casinos plans to initiate a stock buyback program, the company's ongoing negotiations with prospective buyers for its Casinos Poland operations in the sports betting sector could potentially unlock new opportunities for mergers and acquisitions within the business.
