Twin River Worldwide Holdings has posted its financial results for the fourth quarter and year ended December 31, 2019, showing Q4 revenue ahead 17% to $130.4m (2018 $111.4m), with full year revenue up 19.7% to $523.6m ($437.5).
The Q4 increase was principally driven, said the firm, by the effects of the acquisition of Dover Downs Hotel & Casino, which continued to exceed expectations contributing $27.6m of revenue to its results.
New competition in the New England market, and the associated increases in marketing and promotional activity, continued to negatively impact revenue in the fourth quarter at the company’s Twin River Casino Hotel. However, the company noted that the impacts have moderated and revenue has shown signs of stabilization.
Tiverton Casino Hotel, which opened in September 2018, continued to demonstrate marked resilience in the face of new regional competition. Also, overall performance at Hard Rock Hotel & Casino Biloxi remained strong.
Overall gaming revenue increased $4.7m, or 5.6%, to $88.5m; food and beverage revenue increased $7.1m, or 56.7%, to $19.5m; and hotel revenue increased $4.5m, or 78.9%, to $10.2m, in each case, in the fourth quarter of 2019 compared to the same period in 2018.
Income from operations in the fourth quarter of 2019 decreased $5.7m, or 16.4%, to $29m ($34.7m). These results were unfavorably impacted by an increase in share-based compensation expense of $9.8m as $1m of expense was recorded in the fourth quarter of 2019 compared to a benefit of $8.8m in the prior year.
The firm also cited a decrease in income from operations of $2.2m in the Rhode Island segment primarily due to the reduction in revenue as a result of new competition in the market, partially offset by cost efficiency measures, particularly in Lincoln.
Q4 net income decreased $8.8m, or 39.7%, to $13.4m, while adjusted EBITDA was up 8.7% to $40.2m ($37m). In its outlook, Twin River estimated adjusted EBITDA for 2020 to be approximately $180m, an increase of 8% over the same period in 2019.