Dover Down Acquisition Drives Twin River’s Q4 Growth Up

Twin River Worldwide Holdings announced its financial results for the fourth quarter and year ended December 31, 2019, showing Q4 sales ahead of 17% to $130.4 m ($111.4 m in 2018), with full-year revenue growing 19.7% to $523.6 m ($437.5).

The Q4 rise was driven primarily by the impact of the Dover Downs Hotel & Casino purchase, which continued to exceed expectations adding $27.6 m of sales to its performance, the firm said.

New competition on the New England market and the resulting rise in marketing and promotional spending continued to have a negative impact on sales at the company’s Twin River Casino Hotel during the fourth quarter. The company noted, however, that the impacts have been moderating, and revenue has shown signs of stabilisation.

Tiverton Casino Hotel, opened in September 2018, has continued to show marked strength and resilience of new regional rivalry. Overall performance has remained strong at Hard Rock Hotel & Casino Biloxi.

Overall gaming revenue increased by $4.7 million, or 5.6%, to $88.5 million; food and beverage revenue increased by $7.1 million, or 56.7%, to $19.5 million; and hotel revenue increased by $4.5 million, or 78.9%, to $10.2 million, in each case, in the fourth quarter of 2019, compared to the same period in 2018.

Profit from operations declined $5.7 m or 16.4 percent to $29 m ($34.7 m) in the fourth quarter of 2019. Such results were adversely affected by a $9.8 m rise in share-based compensation expense as $1 m of expenditure was reported in the fourth quarter of 2019 compared with a $8.8 m benefit in the prior year.

The firm also noted a $2.2 m decrease in revenue from operations in the Rhode Island segment primarily due to the decrease in revenue arising from new market competition, partially offset by cost-effectiveness initiatives, particularly in Lincoln.

Q4 net income was down $8.8 million, or 39.7%, to $13.4 million, while adjusted EBITDA was up 8.7% to $40.2 million ($37 million). In its forecast, Twin River projected an adjusted EBITDA of around $180 m for 2020, an 8 percent increase over the same timeframe in 2019.