Golden Entertainment has expressed excitement about footfall amid relaxing controls, considering the fact that tightened measures enforced in the fourth quarter of 2020 had an effect on the company’s overall performance.
In addition to the resumption of retail and business travel, the organisation expressed optimism that Las Vegas would “benefit from pent up demand.” It also praised improvements to the city’s cost structure.
The corporation reported sales of $205.6 million for the three months ended December 31, 2020, down 15 percent from $242.1 million.
The quarter ended with a net loss of $18.5 million, relative to a loss of $7.7 million the year before, and adjusted EBITDA of $38.9 million (2019: $43.1 million).
In the third quarter of the year, casino income was $112.6 million, down 25 percent from the previous year’s $150.2 million, with adjusted EBITDA of $33.4 million (2019: $41.7 million).
Distributed gaming division
Golden Entertainment’s distributed gaming division saw sales grow a smidgeon to $93 million (2019: $91.7 million), with adjusted EBITDA increasing from $13.2 million to $13.6 million.
Golden Entertainment’s chairman and CEO, Blake Sartini, explained: “Our fourth quarter started strong with record October adjusted EBITDA. However, tightened operating restrictions across all our businesses due to the pandemic began in November and extended through December, impacting overall fourth quarter results.
“Despite these challenges, our fourth quarter continues to demonstrate that the adjustments we have made to our operations provide a foundation for sustainable margin improvements which are expected to provide a significant lift to our adjusted EBITDA and free cash flow as business volume returns to normalised levels.”
Revenue fell 28.6 percent to $694.1 million (2019: $973.4 million), with a net loss of $136.6 million (2019: 39.5 million) and adjusted EBITDA of $8.1 million, relative to a profit of $38.8 million a year ago.
Sartini added that industry dynamics are improving in the first quarter of 2021, compared to the final quarter of the previous year: “We are encouraged by the increased business volumes since state restrictions began to ease and believe that as the vaccination rollout progresses, Las Vegas will benefit from pent up demand as well as the resumption of retail and business travel.
“Looking forward, we expect the changes we have made to our cost structure will provide us with sustainable margin improvements which are expected to result in higher cash generation and allow us to reduce leverage, pursue future strategic initiatives and return capital to shareholders.”