Twin River Worldwide Holdings has reported a revenue increase for the third quarter of 2019, despite a number of factors having an adverse effect on the firm’s performance during the period.
The company, which owns and manages Rhode Island’s Twin River Casino Hotel and Tiverton Casino Hotel, Hard Rock Hotel and Casino in Biloxi, Mississippi, Dover Downs Hotel and Casino in Dover, Delaware and Arapahoe Park racetrack in Colorado, reported a 17 per cent increase to $129.9m (2018: $100.4m).
Principally driven by the effects of the Dover Down acquisition which it is said exceeded expectations with revenue of $25.9m, increased competition in New England, driven by Encore Boston Harbor, and the associated increases in marketing and promotional activity, significantly impacted Twin River’s Q3.
The company stresses that it expects this “unusually high level of competitive market activity to moderate over time,” and is planning to respond with new initiatives of its own.
Overall gaming revenue increased 7.6 per cent to $88.3m (2018: $82m), as income from operations decreased 27.7 per cent year-over-year from $29.6m to $21.4m driven by aforementioned impacts due to increased competition.
“I am very pleased that our proven corporate strategy of accretive growth, continued diversification of our portfolio and a meaningful return of capital to shareholders, continues to generate value for our stakeholders,” commented George Papanier, president and chief executive officer.
“While we experienced the anticipated short-term impacts of new competition at our Twin River Casino Hotel in the quarter, we continued to reap the benefits of our disciplined M&A strategy, with Dover Downs and Tiverton both performing extremely well this quarter. Our overall plan is on track and the long-term value proposition we have laid out for our investors remains intact.”
Twin River also provided updates on two previously announced acquisitions, stressing that a $230m deal to acquire the operations and real estate of Isle of Capri Kansas City and Lady Luck Vicksburg from Eldorado Resorts is expected to close in early to mid 2020, subject to customary closing conditions.
Furthermore, a deal to acquire a subsidiary of Affinity Gaming that owns three casino properties located in Black Hawk, Colorado, namely Golden Gates, Golden Gulch and Mardi Gras, is expected to close early next year. Due to recently passed legislation the company will also acquire the right to three sports gaming licenses in the state.