Golden Entertainment Inc has reported financial results for the second quarter ended June 30, 2019, with record revenues of $248.1m, up 14.6% from $216.5m year-on-year. Net loss for the second quarter was $14.4m, equal to $0.52 per share, compared to net income of $3.6m or $0.12 per diluted share in Q2 2018.
Adjusted Q2 EBITDA increased 7.6% to a record $49.8m compared to $46.3m year-on-year. Results for the second quarter include a full quarter of operations of the Edgewater and Colorado Belle Casino Resorts acquired by the company on January 14, 2019.
Casino revenues for the period grew 21.2% to $158.7m from $130.9m in 2018, while casino adjusted EBITDA grew 13.7% to $48m compared to $42.2m year-on-year. Second quarter growth in the casino segment was primarily driven by the acquisition of two casinos in Laughlin, Nevada in January 2019, partially offset by the construction disruption at The Strat and increased regional competition that impacted Rocky Gap Casino Resort in Maryland.
Blake Sartini, Chairman and Chief Executive Officer, commented: “Record quarterly revenue and adjusted EBITDA in the second quarter reflects solid year-over-year increases across both our casinos and distributed gaming operations.
“The improvements we have made at The Strat continue to be well received by our guests despite the ongoing construction disruption at the property. We have started renovations to The Strat casino floor and remodels of additional hotel rooms, which we expect to complete by the end of the year.
“We have also integrated the operations of the Edgewater and Colorado Belle casinos in Laughlin and we expect these properties to deliver improved results in the second half of the year as we begin to realize our targeted synergies.”
Turning to distributed gaming, which saw revenues increased 4.4% to $89.2m from $85.4m in Q2 2018, Sartini noted: “During the second quarter our distributed gaming operations benefited from six new taverns opened since the prior-year period and from improved Nevada chain store performance following rent adjustments to approximately half of our locations. Further, our Montana business continues to grow organically with the addition of new locations.”
On the outlook, he commented: “We expect continued economic growth in southern Nevada will support the financial performance for the majority of our portfolio of gaming assets. In addition, we believe our strategic investment in The Strat as well as our recent property acquisitions in Laughlin position us favorably to build long-term shareholder value.”
