Monarch Casino and Resort revenues fall in Q1 2020
Lockdown measures due to COVID-19 result in net revenue dropping by 13.2%.
Monarch Casino and Resort reported a sharp fall for Q1 2020. The operator has venues in Nevada and Colorado, but with the lockdown due to COVID-19, it’s facing serious revenue loss.
The company’s net revenue dropped by 13.2%, earning it $51 million. In 2019, the same period brought Monarch $58.7 million. EBITDA for Q1 was $8.1 million, a 40.7% drop compared to the previous year.
Forecasts were much higher based on the company managing to surpass estimates in the past; Monarch was predicted to earn $0.57 for its shares. However, due to measures enforced by the pandemic, the company currently earns $0.11 per share, which is significantly lower than $0.38 in 2019. Since the beginning of the year, Monarch Casino faces a 48.2% loss of the shares.
CEO John Farahi stated that employees have received two weeks’ pay since venues closed their doors in mid-March. After that, staff were placed on unpaid furlough. He also added that he and other directors agreed to major cuts to their salaries.
Additionally, Monarch Casino is building a new venue in Colorado. The company is working to obtain a temporary certificate that will allow Monarch to open the first five floors of the new building. However, it’s still unclear if these plans can increase the share value or help the company recover some of the lost revenue.
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