Stratosphere owner Golden Entertainment said during an earnings bawl this week it had experienced a “challenging” third quarter, as it posted a net loss of $3.1 million.
Revenues for the tavern owner-turned budding casino giant nearly doubled to $210.3 million from $107.7 million, but the company is inadequate to made analysts’ forecasts, is in accordance with Zacks. The investment research firm have also pointed out that Golden has missed earnings-per-share forecasts for four consecutive quarters.
Golden is the largest tavern operator in Nevada with over 55 establishments, including PT’s, Sean Patrick’s Irish Pub& Grill, Sierra Gold and SG Bar. It joined the big league in the casino industry in 2017 through the acquisition of American Casino& Entertainment Belongings, whose resources included the Stratosphere. Golden likewise owns several hotel-casinos in Southern Nevada and Maryland as well as slot roads in Nevada and Montana.
In July, it announced the acquisition of two Laughlin casinoes — the Edgewater and Colorado Belle — from Marnell Gaming for $190 million. The corporation said it expected to finalise that deal in the first quarter of 2019.
The Loughlin properties together boast over 1,400 slot machines, 40 table plays, 2,150 hotel rooms, and 11 eateries. Also included in the deal is the Laughlin Event Center, a 12,00 -seater outdoor arena.
Despite strong concert from our Laughlin and Las Vegas Local belongings, we experienced a challenging third one-quarter mainly due to weaker than expected results at the Stratosphere and at chain store spots in our Nevada shared gaming business, ” said Golden Entertainment CEO Blake Sartini.
” We are considering improving tendencies early in the fourth quarter and expect stronger performance in 2019, particularly at the Stratosphere following the renovation of 750 chambers and the opening of our brand-new sportsbook, lounge and tap chamber theory .”
Sartini said the ongoing redevelopments to the Stratosphere altered hotel tenancy, particularly in July and August. Meanwhile, the Strat Cafe- one of the hotel’s busiest meat outlets — was shut all of September. The upgrade is likewise expected to finish in Q1 of 2019.
Sartini quoth market softness on the Strip during the quarter, but added the company retained complete faith in the Las Vegas market , noting strong economy and high visitation numbers.
“We currently determine no signs that Las Vegas is losing its place as the leading destination for vacation and convention travel, ” Sartini said.
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