Monarch Casino and Resort lauded a “active and productive year” to complete the “all-new” Colorado Monarch Casino Resort Spa Black Hawk.
Currently completing construction on the building, the company plans to begin a soft opening process in the second quarter of the year for the lower portion of its hotel tower, with additional rates to be initiated in due course.
The company would follow up the work with the addition of a poker room and sports bar with a grand opening date for the casino and hotel project to be revealed around the same time span.
The latter was explained by John Farahi, Monarch’s co-chairman and CEO: “We were the first casino operator to receive our master sports betting license from the state of Colorado on February 20, 2020, and we expect to debut our in-person sportsbook, as well as our Monarch-branded mobile sports app, on May 1, 2020, the first day sports betting will become legal in Colorado.”
Monarch, which owns and operates Monarch Casino Black Hawk and the Atlantis Casino Resort Spa in Reno, Nevada, received the details in its new financial results for the final quarter and full year of 2019.
Revenue for the quarter rose 3.8 per percent to $62 million (2018: $59.7 million), helping nudge full-year results to $249.1 million, reflecting a 3.7 per percent rise from $240.3 million. Casino revenue rose 2.5 percent cent and 1.7 percent to $32 million (2018: $31.2 million) and $249.1 million (2018: $240.3 million) respectively for Q4 and FY, powered by an rise in gaming volume and partly balanced by a rise in advertising allowances.
The quarterly adjusted EBITDA rose 5.3 percent to $14.1 million (2018: $13.4 million), with the full-year figure ending at 61.6 million, up 1.8 percent from $60.5 million. Net profits, respectively, drops 14.6% and 6.7% to $6.1 m (2018: $7.2 m) and $31.8 (2018: $34 m) in both time frames.
The decline in net income is largely due to pre-opening costs as well as payments for legal services for building lawsuits related to the Black Hawk property and due diligence on an opportunity to acquire.
Farahi further added: “2019 was an active and productive year for Monarch as we made significant progress toward completing construction in Black Hawk, thus setting the foundation for an exciting 2020 and beyond. We generated net revenue and EBITDA growth in both Reno and Black Hawk. In Black Hawk, we focused on preserving the player experience by effectively managing construction disruption.
“Net revenue for the 2019 fourth quarter grew 3.8 per cent over the prior year and adjusted EBITDA increased 5.3 per cent year-over-year as a result of our disciplined operating strategies. Net income for the quarter declined 14.6 per cent and was impacted by Monarch Black Hawk pre-opening expenses, and professional services fees related to construction litigation and due diligence for an acquisition opportunity, which we ultimately decided not to pursue.
“Reno remains a very healthy locals-oriented market. While many companies attract headlines for driving job growth in Reno, the market’s employment growth is broad-based across several industries, and we expect this positive indicator will support the continued strength of our business at Atlantis.
“At the same time, the tight employment environment, with the local unemployment rate below the national average, has created labour challenges, including wage inflation, which we continue to actively manage. We expect this to be a recurring trend for the market and Atlantis in the years ahead, but we remain confident that our operating strategies will allow Atlantis to grow revenue and profit as our market share continues to expand.”