Golden Entertainment has released its financial results for the second quarter ending 30 June 2024. The operator reported a revenue of $167.3m, marking a 41.6% decrease year-on-year.
This decline is attributed primarily to the exclusion of results from recently sold assets, including the Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada.
The company's adjusted EBITDA also experienced a significant decline, falling 29.5% to $41.2m. Net income for the second quarter was reported at $600k, or $0.02 per diluted share, down 51%.
Golden Entertainment's financial results were impacted by the sale of its Rocky Gap Casino Resort operations to Century Casinos for $56.1m, and the associated land and building to Vici Properties for approximately $203.9m.
The sales, completed in July 2023 and January 2024, were part of the company's strategy to streamline its operations and focus on core assets.
Despite the overall revenue decline, the Rooms sector reported a 1.63% increase in revenue, reaching $31.4m in Q2 2024. In contrast, the Gaming sector saw a substantial decrease, with revenue dropping over 57.1% to $78.3m.
As of 30 June 2024, Golden Entertainment's total principal debt was $400.7m, primarily consisting of $396m in outstanding term loan borrowings. The company held cash and cash equivalents amounting to $88.6m and maintained a $240m revolving credit facility, which remains undrawn.
In the second quarter, the company focused on reducing its financial liabilities and returning capital to shareholders. In April 2024, Golden Entertainment redeemed $287m in senior unsecured notes.
Additionally, the interest rate on its $396m term loan was reduced by 60 basis points in May. The company also repurchased approximately 989,117 shares at an average price of $29.85 per share and paid out quarterly cash dividends totalling $14.3m.
