Full House Resorts reported a 12.6% year-on-year increase in revenue for the third quarter of its 2021 financial year, but the land-based casino operator also saw its net profit decline 40.3%.
Revenue for the three months to September 30 amounted to $47.2m, up from $42.0m in the corresponding period last year.
Full House experienced year-on-year revenue growth across all but one of its business areas, with casino revenue up 1.2% to $32.5m, food and beverage revenue rising 26.8% to $7.1m and other operations, including sports wagering, up 173.7% to $5.2m. Hotel revenue was marginally down to $2.5m.
Breaking down this performance geographically, Full House’s casino activities in Mississippi generated the highest proportion of revenue, with the Silver Slipper Casino and Hotel seeing revenue reach $21.5m.
Elsewhere and the Rising Star Casino Resort in Indiana saw revenue reach $12.6m in Q3, with Full House set to increase its presence in Indiana after the operator in September put forward a proposal to open a new facility in Terre Haute, Indiana. The operator is due to present its full plans for the proposed ‘American Place’ venue to the Indiana Gaming Commission later this month.
Revenue from the Bronco Billy’s Casino and Hotel in Colorado amounted to $6.3m, with this segment soon to include the Chamonix Casino Hotel, which will open next year. Full House also generated $5.1m in revenue from the Grand Lodge Casino at the Hyatt Regency Lake Tahoe in Nevada.
In terms of contracted sports wagering, a segment that consists of on-site and online sports wagering skins in Colorado and Indiana, revenue for the quarter was $1.6m, reflecting the launch of two additional skins in April.
Looking at spending on Q3 and operating expenses were 14.6% higher at $36.1m after Full House saw expenses increase across casino; food and beverage and selling, general and administrative costs.
This left an operating profit of $11.1m, up 6.7% year-on-year. However, after accounting for $6.4m in interest expense, this left a pre-tax profit of $4.7m, down 38.2% on last year, but adjusted earnings before interest, tax, depreciation and amortization (EBTIDA) climbed 8.8% to $13.6m.
Full House paid $95,000 in income tax, resulting in a net profit of $4.6m, a decline of 40.3% from $7.7m at the same point in 2020.
“We had another strong quarter, with revenue and operating income increases despite some weather challenges,” Full House president and chief executive Daniel Lee said.
“Revenues in the third quarter of 2021 increased 12.6%, reflecting the relaxation of pandemic-related restrictions, our sale of ‘free play’ in Indiana, and a continued strong overall performance.”
As to how this impacted Full House’s year-to-date performance, revenue in the nine months to the end of September was up 56.8% to $136.9m.
Operating costs were 24.1% higher at $104.9m and after also including $25.0m in financial expenses, pre-tax profit reached $7.0m, compared to a $3.4m loss last year, while adjusted EBITDA was also 297.0% higher at $39.3m.
Full House paid $379,000 in tax, resulting in a net profit of $6.7m, up from a loss of $3.4m at the end of September 2020.
Reflecting on the performance, Lee referenced the proposed American Place development in Indiana, as well as a separate project in Illinois, as operations that could support further growth.
In October 2019, Full House proposed opening a new casino and entertainment destination in Waukegan, Illinois. Also named American Place, the proposed development is one of two submissions on a final shortlist, with the Illinois Gaming Board set to deliver its decision early next year.
“Our management team at Full House has a long history of developing some of the most iconic casinos in the world,” Lee said. “We look forward to the potential of developing both of these unique proposals over the next few years.”