G
olden Entertainment has released its second quarter, 2021 financial results. According to the company’s report, this period highlights are:
- Record quarterly revenue of $292 million, net income of $103 million and Adjusted EBITDA of $91 million.
- All casino properties revenues accounted for $170.8 million. Together with the distributed gaming operations, the company has achieved the highest quarterly Adjusted EBITDA in its history with $78.5 million.
- Received $60 million cash payment from Caesars Entertainment in July; may receive up to an additional $15 million based on the potential sale value of William Hill’s UK business
- Repaid over $50 million of debt in the quarter; cash balance of $213 million including the payment from Caesars Entertainment.
The company reported 2021 Q2 revenues of $292.5 million, compared to $76 million year-over-year. Net income was $103 million, compared to a net loss of $78.6 million for the second quarter of 2020. This past quarter’s net income includes $60 million in other non-operating income recognized from the Caesars’ payment received after quarter end.
Based on these results, Blake Sartini, Chairman and CEO of Golden Entertainment, commented.
“Our second quarter operating results demonstrated improvement over our first quarter, as we generated record quarterly levels of revenue, net income and Adjusted EBITDA. These results highlight strong levels of visitation and spend at all of our properties, including The STRAT, combined with the margin improvement we have sustained over the last twelve months”, he said.
“During the quarter, we deployed cash generated from operations to repay over $50 million of outstanding debt obligations including $47 million of our term loan. After the quarter ended, we received a $60 million cash payment from Caesars Entertainment related to their acquisition of William Hill and have the potential to receive up to an additional $15 million payment from Caesars depending on the sale value for William Hill’s UK business”, he explained.
“We appreciate our longstanding relationship with William Hill and look forward to their continued operation of the sportsbooks in our Nevada casinos. After receiving the payment from Caesars, our pro forma LTM net leverage ratio is 3.8x and we expect to continue to reduce our leverage through the end of the year which will provide additional strategic flexibility and position us to return capital to our shareholders”, he stated.
In reference to the achievement of the highest quarterly adjusted earnings in the company’s history, as the STRAT doubled the first quarter and saw a 45% increase compared to Q2 2019, and occupancy levels reached 74% for the quarter compared to 90% for the same period in 2019; the executives commented: “We’ve seen significant growth across the entire portfolio, from the Las Vegas Strip to local taverns, and we still see room for improvement,” said Charles Protell, president and chief financial officer.
“Our $110 million investment (in room and casino-floor upgrades and food and beverage outlets at the STRAT) completed in 2020 is helping us capture more of our guests’ wallets and earning a significantly higher (return on investment) than we expected,” Protell said. “We anticipate the property performance will improve as midweek business increases and we return to citywide conventions and international visitors.”
The STRAT had a deficit of 38,000 room nights during the second quarter compared to the same period in 2019, but Sartini said they saw 30% more spend by customers than they did in the past.
“We’re directly booking 30% of our hotel rooms; when we bought the property, it was 6% or 7%. Our casino marketing programs, targeted resort marketing, and new entertainment offerings and food and beverage upgrades are driving this direct-booking trend, which is enabling us to generate that additional 30% spend that we anticipated by providing a full-resort experience at that property”, Sartini said.
Resorts World Las Vegas, which opened in June, the Marriott resort (former Fontainebleau) expected to open in 2023, and the major expansion at the Las Vegas Convention Center are all in close proximity to the STRAT.
“All bode well for driving future revenue,” Sartini said. “We’re seeing great results at the moment, and that’s without convention activity, no entertainment activity, and no full sports stadiums. All of this leads to the benefit of the STRAT.”
Sartini said he’s confident that Resorts World and the Marriott, when it comes online, will generate foot traffic walking north to the STRAT. That will “absolutely help us in the tower operation and Top of the World restaurant, the thrill rides, the viewing deck,” he said.
Original article: https://www.yogonet.com/international//noticias/2021/08/09/58747-the-strat-drives-golden-entertainments-highest-ever-quarterly-revenue-and-income
