After achieving company-wide highs in sales and adjusted EBITDA during the first quarter, Monarch Casino and Resort has praised the “overwhelming response” to its redesigned Monarch Casino Resort Spa Black Hawk.
The company, which owns and operates the Atlantis Casino Resort Spa in Reno, Nevada, as well as the Coloradan facility, reported revenue of $75 million in the first quarter, up 46.9 percent from $51 million in 2020.
Revenues from the casino, food and beverage, and hotel rose 73.3 percent, 9.8 percent, and 34.6 percent year over year, to $46.9 million (2020: $27 million), $16.2 million (2020: $14.7 million), and $8.6 million (2020: $6.4 million), respectively.
This rise was fuelled by the company’s planned November 2020 opening of a hotel and expanded casino in Black Hawk, a full quarter of operations at its Reno and Black Hawk properties, and higher guest spend per visit.
Pandemic-related shutdowns affected the prior year portion, which lasted from March 18 to June 4, 2020 for Atlantis and from March 17 to June 17, 2020 for Monarch Black Hawk.
Continued market share growth
John Farahi, Monarch’s co-chairman and CEO, explained: “We continued market share growth at both of our Reno and Black Hawk properties, achieving new records. Our overall first quarter performance demonstrated Monarch’s success in capturing a higher share of the pent-up demand that seems evident across the gaming industry – particularly in regional gaming markets.
“The quality of our two casino resorts allows us to take advantage of the healthy economies in our key feeder markets and positions us to continue our growth as we recover from the pandemic and the government restrictions abate.
“Throughout the first quarter, both markets operated under continued state-imposed capacity and other restrictions, which negatively impacted hotel and food and beverage performance.
“However, given our team’s coordinated expense management efforts, we grew Adjusted EBITDA at a rate which exceeded our revenue growth. Managing labour remains a major factor for the business, particularly as we ramp up staffing in Black Hawk and look to restore amenities at both properties.”
In addition, the company delivered a record combined adjusted EBITDA of $22.8 million in the first quarter of 2021, up 181.6 percent from the same period the previous year. The period’s net income rose by 303.7 percent year over year, from $2 million to $8.1 million.
Looking ahead, Farahi added: “As the recovery momentum builds over the course of 2021 and into 2022, we believe that our Reno and Black Hawk markets will enable us to generate strong returns.
“At the same time, we continue to reduce leverage and further improve our balance sheet, positioning the company to evaluate and pursue attractive acquisition opportunities that can drive long-term growth and enhance stockholder value.”