Eldorado Resorts is looking to a period of sustained financial increases, after a series of acquisitions, including its large-scale $1.85bn Tropicana Entertainment purchase, widened its footprint to 28 properties across 13 US states.
As a result of the free cash flow expected to be achieved from the recent accretive acquisitions, the company is to utilise a portion to buy back $150m of its shares.
In its third quarter update Eldorado recorded a net revenue increase to $487.2m (2017: $472.8m), with the three per cent increase largely driven by the Grand Victoria Casino acquisition, while net revenues also rose 27.3 per cent to $37.7m (2017: $29.6m).
Commenting on the Reno-based operators Q3 performance, Gary Carano, chairman and chief executive officer of Eldorado, explained: “The 2018 third quarter was another impressive period of growth for Eldorado Resorts, as adjusted EBITDA rose at 17 of our 21 properties, inclusive of the Grand Victoria Casino which was acquired in August.
“As a result, all five of our property segments generated year over year adjusted EBITDA growth, including double-digit growth for our South, East and Central segments.
“In addition, the third quarter adjusted EBITDA margin rose at all five of our reporting segments, with the increases ranging between 200 and 690 basis points, as we continue to apply operational discipline focused on delivering profitable revenue and driving strong EBITDA gains.
“Third quarter consolidated adjusted EBITDA rose 12.6% on a year over year basis on top of the strong 16.2% growth achieved in prior year period, our property-level adjusted EBITDA margin improved 370 basis points to 28.7%, and our consolidated adjusted EBITDA margin rose 360 basis points to 27.4%.”
Adding: “We are excited about our future as we continue to integrate our newly acquired properties, focus on initiatives that are expected to deliver margin improvement from our operations, invest in facility enhancements that are anticipated to deliver attractive returns, and position ourselves to benefit from developing sports wagering opportunity in the US.”
