Golden Entertainment reveals revenue and net profit growth in Q1

Land-based operator Golden Entertainment reported a year-on-year increase in revenue and net profit for the first quarter of is 2022 financial year.

OLYMPUS DIGITAL CAMERA

Consolidated revenue in the three months through to 31 March 2022 amounted to $273.6m (£221.7m/€260.2m), up 14.1% from $239.7m in the opening quarter of 2021.

Golden Entertainment posted growth across all areas of the business, with gaming revenue up 7.8% to $190.8m, food and beverage revenue rising 25.7% to $42.5m, rooms revenue climbing 39.7% to $24.7m and other revenue increasing 40.0% to $14.7m.

Breaking down this performance, revenue from Nevada casino resorts was up 28.9% year-on-year to $96.4m, while Nevada local casino revenue edged up 3.6% to $39.9m. Revenue from the Rocky Gap Resort Casino in Maryland also increased 11.2% to $17.9m.

Golden Entertainment also noted that revenue from its distributed gaming business jumped 8.5% from $109.9m to $119.2m during the quarter.

Turning to costs and operating expenses were 12.9% higher at $240.8m, which resulted in an operating profit of $32.9m, up 24.6% year-on-year.

The operator also reported $15.3m in net non-operating expenses, primarily due to $15.1m in interest costs, with this leading to a pre-tax profit of $17.6m, an increase of 70.9% on last year.

Golden Entertainment also received $18.5m worth of income tax benefits, meaning that it ended the quarter with a net profit of $36.1m, up 240.6% on 2021.

“Our record first quarter results reflect a continuation of the strong financial performance we delivered over 2021,” Golden Entertainment chairman and chief executive Blake Sartini said.

“Our strong cash flow has allowed us to reduce debt while returning capital to shareholders through our share repurchase program. Since the beginning of 2021 we have reduced indebtedness by $158.0m and since December 2021 we have also repurchased more than $25.0m of our common stock.

“We expect to remain focused on returning capital to shareholders as the strength in our business continues.”

Author: Raymond Fleming