Golden Entertainment confident of achieving long-term ambitions

Las Vegas headquartered Golden Entertainment is confident of achieving its previously communicated long-term growth ambitions, despite a 13.65 per cent fall in first quarter revenue to $207.2m from 2019’s $239.8m. 

Publishing its latest financial report, becoming the latest casino operator to document the deep impact of COVID-19, the firm has seen distributed gaming operations reopen in Montana earlier in the month.

Expressing acknowledgement to healthcare providers, first responders and other essential workers, Blake Sartini, chairman and CEO of Golden Entertainment, said of the firm’s ongoing ambitions: “Over the last several years we have executed on a strategic plan to put the company on a path for long-term growth. This plan included capital investment to renovate and reposition The Strat, accretive acquisitions that have grown our market share in Laughlin, pursuing new distributed gaming markets, and the introduction of our True Rewards one-card loyalty program. 

“Our current cash position, capital structure with no near-term debt maturities, and diverse operations of wholly-owned casinos and distributed gaming operations across multiple jurisdictions will position Golden Entertainment favourably to achieve long-term success as we are allowed to reopen our properties.”

Seeing results heavily impacted by the ongoing health crisis, casino revenues for the firm fell 15.4 per cent to $128m (2019: $151.4m), with distributed gaming falling 10.6 per cent to $79m (2019: $88.4m). Net loss dropped from $8m to $32.6m.

Sartini added: “The covid-19 pandemic forced the mandated closure of all our operations beginning in mid-March, and continues to have an unprecedented impact on our business and the gaming and entertainment industry in general. 

“This is reflected in our first quarter financial results, notwithstanding our significant year-over-year growth through February prior to the suspension of our operations. Since the closures, we have focused on supporting our team members, staying connected to our customers, and working to establish appropriate sanitation protocols to offer a safe environment when we are allowed to reopen.

“In order to preserve the company’s liquidity and position ourselves to withstand the ongoing interruption to our operations, we reduced our cash operating expenses, deferred all capital expenditures and drew down our $200m availability under our revolving credit facility. The actions that we have taken since the closure of our operations have positioned Golden Entertainment to withstand the current disruption in our business for the foreseeable future.”