Golden Entertainment posts decrease in Q2 revenue, income and EBITDA
Company Chairman and CEO is still optimistic that sales and refinancing will improve liquidity.
Golden Entertainment has released its Q2 financial report, posting revenue of $286.7m, a 1% decline year-on-year. The company’s net income reached $12.3m, representing a more significant yearly decrease from $21.2m in Q2 of 2022.
The casino resort operator has announced a special cash dividend of $2.00 per share, which will be a one-time payment issued to stockholders on August 25. Golden Entertainment’s Board also raised the share repurchase authorization to $100m.
Recently, the company has set aside $175m worth of cash proceeds from the sale of Rocky Gap Casino Resort to Century Casinos and an affiliate of Vici Properties to reduce its debts, as well as underwent $640m worth of debt refinancing in May.
The total reported principal amount of outstanding debt was $916m as of June 30. Golden Entertainment posted EBITDA of $58.4m, which was also down 22.1% year-on-year.
Blake Sartini, Chairman and CEO of Golden Entertainment, said of the quarter, “Ongoing room and pool renovations at The Strat, which were completed at the end of June, negatively impacted second quarter results. Despite weaker results from our casino resorts segment, our local casinos continued their strong performance.
“We continue to expect the sale of our distributed gaming businesses to close by the end of 2023, which will further strengthen our balance sheet and liquidity.”
The renovations on The Strat Hotel, Casino & Tower included finishing 537 room upgrades and enhancements to the pool area. In March, the company also began plans to sell operations in Nevada and Montana to J&J Ventures.
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