Golden Entertainment has maintained the momentum gained at the turn of the year through the first quarter and beyond, as the group reflects on a record performance.
Through the three months to March 31, 2022, revenue increased 14 per cent year-on-year to $273.6m (2021: $239.7m), but dropped a little over three percentage points on a quarterly basis from Q4 2021’s $282m.
Increases were felt across each revenue reporting segment, with gaming; food and beverage; hotel, and other; all up to $190.78m (2021: $177m), $42.45m (2021: $33.8m), $25.74m (2021: $18.39m), and $14.65 (2021: $10.49m), respectively.
Net income rose 70.55 per cent to $36m (2021: $10.62m), with adjusted EBITDA up 13 per cent to close the period at $67.3m (2021: $59.5m).
“These results reflect increased visitation to our destination properties, continued strong levels of customer spend at our local casinos and distributed gaming locations and our ability to maintain margins well in excess of pre-COVID periods,” commented Charles Protell, President and Chief Financial Officer of Golden Entertainment.
On a geographical basis, GDE’s Nevada casino resorts saw revenue and adjusted EBITDA increase 28.8 per cent and 25.84 per cent to $96.4m (2021: $74.8m) and $33.6m (2021: $26.7m), respectively.
This, said the company, is due to increased visitation to destination properties, continued strong levels of customer spend at local casinos and distributed gaming locations and “our ability to maintain margins well in excess of pre-COVID periods”.
Nevada locals reported narrow increases in revenue and AEBITDA to $39.9m (2021: $38.5m) and $20m (2021: $19.6m), with increased employment in Las Vegas as well as a continued influx of new residents from out of the state reported as significant contributing factors.
Elsewhere, revenue for the year at Maryland’s Rocky Gap Casino Resort saw an uptick of 11.18 per cent to $17.9m (2021: $16.1m) as adjusted EBITDA closed at $5.6m, up 14.28 per cent from $4.9m).
The distributed gaming segment, made up of operations in Nevada and Montana as well as branded taverns in the former, saw revenue and adjusted EBITDA increase 8.46 per cent and 5.74 per cent to $119.2m (2021: $109.9m) and $22.1m (2021: $20.9m).
“Our strong operational performance in Q1 has continued into Q2 and we see no signs of slowdown at any of our properties,” stated Protell.
“As we have said before, our cash flow is primarily generated from wholly-owned gaming assets in Southern Nevada, which we view as the most attractive and stable gaming market in the world today.
“We remain focused on optimising our core business, capturing the upside from our destination resorts, while maintaining the performance of our local properties and distributed gaming locations.”