Affinity Gaming remain optimistic despite Q3 revenue decline
As a result of refocused promotional campaigns and marketing programs, Affinity Gaming reports a slight rise in operating income in the Q3 of 2016.
The Las Vegas-based casino operator reported its strongest quarter of the year for property level adjusted cash flow, with its operating income for the July to September period up by 0.7% to $9.1m, compared to the $9.04m of the same period. However, the company was hit by a decline in net income, which dropped by 161.2% to a loss of $1.2m.
Affinity Gaming’s performance in Q3 reported a total net revenue for the nine months to the end of September at $268.8m, 4.5% lower than at the same point in 2015.
Despite the drop in revenue, Affinity Gaming CEO, Michael Silberling says “Over the last two years, we have successfully executed our strategic plan targeted at significantly improving margins and returns from the Company’s operating assets.
“This has been accomplished by rebuilding our executive team with new leadership across most operating departments, executing against a new set of operating principles, simplifying our capital structure, and lowering the cost of capital and de-levering the business.
“The 2016 third-quarter adjusted EBITDA growth is on top of our 33% growth in 2015 third quarter adjusted EBITDA and marks our eight consecutive quarter of adjusted EBITDA improvements.”
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