Eldorado suffers from closures as Q1 revenue down 26%
Eldorado saw net revenue of $473.1m for the first quarter of 2020, a fall of 26% year-on-year on a GAAP basis.
Operating income was $123.1m, down marginally from $123.6 in the year prior.
The casino operator reported adjusted EBITDA of $102.5m, a drop of 38%, while Eldorado’s adjusted EBITDA margin fell 500 basis points compared to 2019.
Tom Reeg, Eldorado CEO, attributed the decline in revenue to the closure of Eldorado properties as a result of the COVID-19 pandemic.
Despite the drop in total Q1 revenue, Reeg reported that the operator experienced a “strong start” to 2020, with revenue up 7% and EBITDA up 25% in the first two months of the year.
To mitigate the effects of the closures, the operator has introduced cost-saving measures and has drawn $465m on its revolver in March to increase cash on the balance sheet to $670m.
Reeg also asserts that the company is committed to its planned merger with Caesars.
He commented: “We remain actively engaged in satisfying the remaining steps to complete the Caesars transaction.
“Our team also remains focused on the integration process and we remain excited about the long-term opportunity to create value for stakeholders of both companies.”
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