Monarch Casino and Resort is continuing to evaluate potential acquisitions as the operator looks to build upon a strong start to 2022 despite what is traditionally “the slowest quarter of the year for us”.
This comes as the group reports 44.5 per cent year-on-year revenue growth to $108.31m (2021: $74.96m), primarily driven by an ongoing ramp up of operations at the company’s hotel and expanded casino in Black Hawk.
Monarch, through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada, and the Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado, approximately 40 miles west of Denver.
In the first quarter of 2021, revenue across both properties were adversely impacted by pandemic-related capacity and other regulatory limitations, which remained in effect following the respective reopening of each.
John Farahi, Co-Chair and Chief Executive Officer of Monarch, commented: “Fiscal year 2022 is off to a strong start as we benefited from the full scope of operations at our newly expanded Monarch Black Hawk, and the continued growth of market share at both properties.
“Our first quarter results also benefited from continued healthy overall macroeconomic trends. The labour market pressure and rising inflation could impact further near-term margins. Our teams continue to manage expenses effectively as we re-invest in our properties and grow our business.”
Looking deeper into the group’s revenue performance, casino increased 33.9 per cent to $62.83m (2020: $46.91m), food and beverage climbing 60.7 per cent from 2020’s $16.2m to finish at $26.04m, and hotel revenue rose 75.9 per cent to $15.19m (2020: $8.63m).
Net income through the first quarter ending March 31, 2022, was up 122.2 per cent to $18.11m (2021: $8.15m), with adjusted EBITDA securing a 50.4 per cent uptick from $22.83m to $34.34m.
Selling, general and administrative expenses through Q1 stood at $24.2m, compared to the $19.9m recorded one year earlier, due to supporting the expanded Monarch Black Hawk and increases in advertising and promotional expenses related to the grand opening.
Looking forward, Farahi noted: “As we look to the balance of 2022, we intend to build on our strong operating performance in the first quarter, which traditionally is the slowest quarter of the year for us and for our markets.
“We continue to evaluate potential acquisitions where we can fully leverage our development and operating expertise to drive long-term value for our stockholders. Our future remains bright and we look forward to what promises to be an exciting 2022.”