Twin River Worldwide Holdings’ Q2 results for the period ended June 30, 2019, were marked by growth in overall revenue, gaming revenue and adjusted EBITDA, but with a fall in net income. The firm cited a solid performance from its Dover Downs business which contributed $25.8m revenue.
Overall revenue saw an increase of 29.2% to $143.2m year-on-year, while gross gaming revenue surged ahead by 26.5% to $228m. Net income for Q2 fell 15.4% to $17.2m, with adjusted EBITDA up 7.1% to $47.5m.
The increase in revenue year-over-year, said the company, was principally driven by the effects of the Dover Downs acquisition, which exceeded expectations on the top line in its first full quarter of ownership. The second quarter was also favorably impacted by incremental revenue at the Tiverton Casino Hotel which opened in the third quarter of 2018 and continued to ramp in the second quarter.
“We are pleased with the company’s results in the quarter as the financial performance at Dover exceeded our already high expectations and our Rhode Island operations performed well despite some softness in the New England gaming markets in the second quarter,” said George Papanier, President and Chief Executive Officer. “Our emphasis of focusing on in-market and out-of-market accretive growth is also proving itself in the early going as we continue to grow prudently into a multi-state operator based in Rhode Island versus a single regional operator.”
The company did note softness in the overall New England market throughout the second quarter of 2019, which was attributed to a challenging comparable period in 2018 resulting from pent up demand due to poor weather in the first quarter of the prior year, as well as the likely impact of decreased tax refund dollars in the current year as a result of federal tax legislation changes at the end of 2017.
Twin Rivers’ Rhode Island segment has also been impacted by new competition which opened in Boston in late June said the firm. Papanier explained: “The new competition had a greater than expected negative impact on our table games at Lincoln in July 2019, while our slots performance for the same period was in line with expectations given the seasonal weakness that we noted earlier that impacted the second quarter.”