With the release of its Q1 financial results for the trading period ending March 31, 2021, Golden Nugget Online Gaming Inc (GNOG) is celebrating a record first quarter.
Revenues for the quarter were $26.7 million (2020: $17.3 million), with a net income of $69.6 million (2020: $4.2 million). Adjusted EBITDA was $(3.5 million), down from $5.9 million the previous year.
According to the company, non-cash gains on warrant derivative liabilities of $81.1 million and a non-cash gain on its tax receivable agreement liability of $1.3 million were reported in the first quarter of 2021. During the quarter, all of the company’s 10,541,667 public warrants were exercised or redeemed.
Golden Nugget provided the following information to investors: “Additionally, first quarter results also reflect interest expense associated with the term loan credit agreement entered into on April 28, 2020.
“The company’s results also reflect debt extinguishment costs of $2.2 m including the accelerated amortization of deferred loan costs and debt premium totalling $0.6m associated with the early repayment of $10.6m of the term loan during the three months ended March 31, 2021.”
According to President Thomas Winter: “We are very pleased to start 2021 with such strong results across both our established and new expansion markets. We believe we are well positioned to capitalize on the significant and fast growing market for igaming across North America.
“We expect that 2021 will be a milestone year for the company as we are on target to be live in 6 states by the end of the year, including all four key igaming states.”
Tilman Fertitta, Chairman and CEO, added: “The future is very bright for Golden Nugget Online Gaming as we achieved another record quarter in revenue and with our newly announced partnerships in Colorado and Iowa, we now have market access in 12 states, representing approximately 29 percent of the US population.”
Golden Nugget Online had a busy first quarter of 2021, having successfully ended the first quarter of operations in Michigan. It also gained market access for online sports and casino in Colorado with Maverick’s Z Casino, as well as market access for online sports and casino in Iowa with the Wild Rose Casino, all of which are subject to legislation and regulatory approvals.