Golden Entertainment posts 79% decline in Q2 net profit

Golden Entertainment reported second-quarter revenue of $289.4 million, down 1% from $292.5 million last year.

For the second quarter, Golden’s early results remained relatively consistent year over year. However, this was offset by a slight increase in costs, which in turn contributed to a decline in profitability.

Total expenses for the second quarter were $244.8 million, up 5%, while Golden’s second quarter net income was $21.2 million, a decrease of 79% from $103 million last year.

Additionally, Adjusted EBITDA fell from $91 million to $75 million, while Golden’s Adjusted EBITDA margin fell from 31% to 26%.

But Golden’s Chairman and CEO, Blake Sartini, maintained a positive outlook, commenting, “Our operational discipline underpinned strong second quarter results and offset the challenges of the current economic environment.

“We have maintained our Adjusted EBITDA margin over the past four quarters as we continue to exceed 2019 performance levels.”

Golden’s “Nevada Casino Resorts” is one area that has seen increased revenue. This segment generated $107.5 million, compared to $106 million previously. However, the increase came despite a drop in gaming revenue, which fell 8% to $46.1 million.

On a semi-annual basis, Golden generated revenue of $563 million, an increase of 6% from $532.2 million last year. Again though, this was offset by rising costs.

Total expenses for the first half were $485.5 million, down from $445.8 million, while net income fell from $113.6 million to $57.3 million.

Sartini continued, “Since the start of 2021, we have reduced our leverage by nearly $200 million and since December 2021, we have repurchased nearly $50 million of our common stock.

“For the remainder of the year, we plan to remain focused on maintaining the strength of our balance sheet and timely returning capital to shareholders.”