Regional Business Holdings Aid Golden Entertainment Recovery in Q3

Golden Entertainment’s third-quarter earnings bounced back, driven by its varied regional business holdings – iGB

The gambling firm stated its diversified regional property holdings aided the company to recover from the effects of the COVID-19 closure in the third quarter of this year.

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Regional Business Holdings Aid Golden Entertainment Recovery in Q3
Following a better-than-anticipated second quarter, Golden Entertainment saw its income decrease by 69.4% year-over-year, the company narrowed its year-over-year decline in the third quarter (ending September) to 15.6%, or $205.4 million.

Of this, gambling income was $145.5 million, up 2.1% from the third quarter of 2019. However, hotel and food and drink contributions saw a larger decline as its properties were affected by COVID-19 restrictions.

Hotel room income fell 36.3% to $22.5 million, while food and drink income declined 43.9% to $28.7 million. The company generated $8.7 million in income from other sources.

Chairman and CEO Blake Sartini remarked: “Our financial performance has rebounded swiftly from the impact of the mandated shutdown in March, reflecting the advantages of our diversified local and regional gambling portfolio and the adjustments we have made in managing our business.”

The majority of third-quarter income came from Golden Entertainment’s casinos in Nevada, including The Strat (formerly the Stratosphere), which accounted for $114.8 million of total income. Another $48.

While Nevada temporarily halted bar service from the middle of July to the end of September, the business earned zero dollars from its Nevada dispersed gaming operations (machines in locations not owned by the company).

Satini stated, “We have resumed bar service in all of our pubs and are observing more typical operating patterns across our holdings.”

The company’s scattered gaming network in Montana produced an extra $21.9 million in income, while its Maryland gambling hall brought in $20.5 million, and $179,000 came from the company’s administrative revenue.