As the casino operator lauds a diversified portfolio of local and regional operations amid a Q3 revenue decline, Golden Entertainment guarantees that it has ‘quickly recovered’ from the effect of mandatory shutdowns.
During the quarter, announcing a 15.8 percent overall sales decrease to finish at $205.3 million (2019: $243.3 million), the company’s food and beverage, rooms and other divisions all reported declines.
Golden Entertainment posted gaming revenue of $145.5 m for the three month period ending September 30, 2020, which marks a small rise from $142.2 m year-on-year. During the time, operating income came in at $9.4 m, a small decrease from $9.8 m, with net loss narrowing from $9.4 m to $6.9 m.
In the third quarter of the year, casino revenue was $135.3 m, a 12.7 percent decrease from $155.1 m in 2019, with adjusted EBITDA coming in at $50.5 m (2019: $42.2 m).
The distributed gaming division of Golden Entertainment saw sales fall 20.5 percent from $88 m to $69.9 m, as adjusted EBITDA fell from $11.4 m to $4.7 m.
Revenue fell 23.8 percent to $329.4 million during the first nine months of the year (2019: $432 million), operating losses were reported as $66.3 million compared to $35.6 million in 2019, and net losses rose from $31.8 million to $118.1 million.
Blake Sartini, Golden Entertainment’s Chairman and CEO, explained: “Our financial performance quickly recovered from the impact of the mandated shutdowns in March reflecting the benefit of our diversified portfolio of local and regional gaming operations as well as adjustments we made to managing the business.
“Our third quarter results demonstrate the continued strong operating trends at most of our properties since reopening as we generated the highest third quarter adjusted EBITDA in the company’s history.”
With a presence of 15,700 slots, 130 table games, and 6,200 hotel rooms, Golden Entertainment, which owns and operates properties through its casino and distributed gaming divisions. The company operates 10 casino resorts, nine in Southern Nevada and its single Maryland-based entity, the Rocky Gap Casino Resort.
Golden Entertainment operates video gaming systems at around 1,000 locations through its distributed gaming business in Nevada and Montana, and owns more than 60 traditional taverns in the former.
Third quarter sales decreased to $114.8 m (2019: $135.4 m) and $48 m (2019: $69.3 m) across the company’s Nevada casino and distributed gaming divisions. However, Montana reported small improvements around the pair to finish at $20.4 million (2019: $19.6 million), and $21.8 million (2019: $18.6 million), respectively.