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Distributed gaming helps Golden Entertainment revenue grow 37.5% in Q3

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Golden Entertainment has reported revenue of $282.4m (£209.6m/€245.0) in its third quarter 2021 results, covering the period ended September 30.

This was a rise of 37.5% compared to the same period in 2020.

Gaming made up most of the revenue at $193.1m, a rise of 35.5% year-on-year. Food and beverages generated $44.2m, while rooms generated $31.5m. These were both increases of 54.3% and 40.2% respectively. The remaining $13.4m, up by 54.4%, came from other revenue streams.

Casino revenue generated $164.1m of the total amount, up 21.2% year-on-year. A total of $142.4 came from Nevada casinos, while $21.6% came from Maryland casinos.

Distributed gaming — which represents gaming revenue from locations that are not primarily gaming-focused, such as slot machines in gas stations — made up the remaining $117.9m This was a significant rise of 68.7% compared to Q3 2020. A total of $92.7m came from Nevada, while $25.1m came from Montana.

In terms of expenses, gaming generated the most cost at $106.3m, up by 39.6% year-on-year. Selling, general and administrative costs came to $54.4m, up slightly by 4.4%. Food and beverage at $32.1m increased by 42.0%, while and depreciation and amortization costs at $26.4m fell by 16.0%. Rooms costs at $13.2m also fell, by 18.9%. Other operating costs made up the remaining $4.6m, an increase of 40.7%.

In total, expenses for the quarter came to $237.2m. This was a year-on-year increase of 21.0%.

The expenses left the operating income at $45.2m, up significantly from $9.4m in Q3 2020.

Non-operating expense, at $16.2m, further affected the income. The non-operating expense fell by $128,000 year-on-year.

After considering tax benefit provision at $123,000, the total net profit for the quarter totaled at $29.0m, up by $36.0m compared to the same period in 2020.

“Our third quarter results demonstrated sustained growth and margin expansion for our casinos and distributed gaming segments compared to the third quarter of 2020 as well as comparable pre-pandemic quarterly periods,” said Blake Sartini, chairman and CEO of Golden Entertainment.

“The strong performance across all of our operations, despite occupancy at The Strat and our Laughlin properties still not having fully recovered to 2019 levels, is an encouraging indicator for our future performance.”