Net income declined by 52% year-on-year to $14m, with adjusted EBITDA declining 17% to $61.1m. The adjusted EBITDA margin for the period was 22%, compared to 26% for the third quarter of 2021.
“Our quarterly results continue to be significantly above 2019 levels, despite reflecting a larger impact from seasonality compared to the same period last year,” said Golden Entertainment Chairman and CEO Blake Sartini.
“We are encouraged by the current business trends to start the fourth quarter and we are well positioned to succeed in any economic environment.”
Nevada Casino Resorts revenue for Q3 2022 was $98.9m, compared to $104.4m in Q3 2021. Adjusted EBITDA for the period was $30.1m, compared to $39.2m in the prior-year period.
Nevada Locals Casinos reported revenue of $37.7m, down from $38.1m in the prior-year period. Adjusted EBITDA declined from $18.1m in Q3 2021 to $16.8m in Q3 2022.
Maryland Casino Resort revenue amounted to $21.6m for both Q3 2021 and Q3 2022, while adjusted EBITDA declined from $7.7m in Q3 2021 to $7.4m in Q3 2022.
As noted by Golden Entertainment, the group entered into definitive agreements to sell the Rocky Gap Casino Resort for aggregate cash consideration of $260m on August 24 2022. Through the agreement, Century Casinos will acquire the operations of the Rocky Gap Casino Resort for $56.1m, and VICI Properties will acquire an interest in the associated land and buildings for $203.9m.
Subject to the satisfaction of customary regulatory approvals and closing conditions, the transactions are expected to close during the second quarter of 2023.
Distributed Gaming revenue for Q3 2022 amounted to $117.6m, compared to $117.9m in the prior-year period. Third quarter 2022 adjusted EBITDA was $18.8m, compared to $21.2m in the prior-year period.
Sartini added: “Our third quarter was also highlighted by our announcement to sell our Rocky Gap Casino Resort for $260 million, which will allow us to focus further on our core operations, maintaining the strength of our balance sheet and opportunistically returning capital to shareholders.”
