Monarch Casino and Resorts is hoping the ongoing expansion of its Colorado based Monarch Casino Black Hawk property pays dividends, as the company reports declining casino revenues during Q4 2018.
The 28 per cent year on year decrease to $31.2m (2017: $43.8m) was offset by rises across both food and beverages sales and hotel revenues, which increased 14 and 23.1 per cent to $18.2m (2017: $16m) and $6.8m (2017: $5.5m) respectively.
Seeing an overall revenue rise of 6.6 per cent to $59.8m, Monarch highlights that adjusted EBITDA for the period was boosted 6.7 per cent to $13.4m (2017: $12.6m), with net income surging 65.1 per cent, partially benefiting from a lower tax rate as a result of the tax cuts and jobs act enacted late in 2017.
John Farahi, co-chairman and chief executive officer of Monarch, explained: “The 2018 fourth quarter completed a productive year, with record financial performance at Atlantis Casino Resort in Reno and consistent progress towards the anticipated opening of the transformed Monarch Casino Black Hawk later in 2019.
“In the fourth quarter, Monarch generated net revenue and adjusted EBITDA growth of 6.6% and 6.7%, respectively, as strong top-line performance was partially offset by the ongoing impact of higher labour expenses across our business and construction disruption in Black Hawk.
“Atlantis Casino Resort and Spa generated record fourth quarter revenue and EBITDA. Reno’s ongoing revitalisation drove strong visitation and equally strong gaming trends, as our team leveraged Atlantis’ best-in-class amenities to maintain our strong market share.
“Fourth quarter financial performance at Monarch Casino Black Hawk was impacted by the ongoing construction and increased labour expenses, including management-level hiring in anticipation of the commencement of our expanded operations later this year.
“Black Hawk results for the 2018 fourth quarter were also impacted by a gaming system conversion issue, which weighed heavily on promotional expenses.
“Our Monarch Casino Black Hawk general contractor has informed us that the new expanded casino, hotel tower, restaurants and retail areas will be completed in the third quarter of 2019 and that the upgraded amenities in the existing casino will be completed in the fourth quarter of 2019.
“Since acquiring the former Riviera Black Hawk in 2012, we have been executing our vision for transforming the property into Black Hawk’s leading gaming and entertainment resort destination and remain confident in our ability to generate an attractive return on our ongoing investment. This investment, combined with our growth in Reno and our industry-best balance sheet, positions Monarch to drive long-term stockholder value.”
Monarch Casino and Resorts, which houses over 2,190 slot and video poker machines alongside 52 table games at its Black Hawk and Atlantis Casino Resort Spa, based in Reno, Nevada, reports that its expansion of the former, containing new expanded casino, hotel tower, restaurants and retail areas will be completed in the third quarter of 2019, and that the upgraded amenities in the existing casino will be completed in the fourth quarter of 2019.