Revenue for the three months to 30 September declined to $116.6m, in a period where the operator was affected by state measures to prevent the spread of novel coronavirus (Covid-19), including capacity limits, restrictions on gaming positions and other amenities.
This meant that the inclusion of revenue from Casino KC and Casino Vicksburg from Eldorado Resorts, after those deals were completed on July 1, only partially offset the declines across the core business.
The additional properties, and lack of other amenities in its casinos, did see gaming revenue grow year-on-year, rising 9.6% to $96.6m. However racing revenue, from Dover Downs, almost halved, falling 48.3% to $1.7m.
Capacity limits contributed to revenue from its hotels falling 38.2% to $6.9m, while food and beverage’s contribution was cut 61.8% to $6.9m. Other revenue came to $4.6m for the period.
While gaming costs were up for the quarter, to $26.0m, outgoings related to racing, hotels, food and beverages, and retail and entertainment all fell. Marketing expenses also dropped to $44.0m, leading to an increase in earnings before interest, tax, depreciation and amortisation (EBITDA), which rose 6.8% to $38.0m.
“We are pleased that in the midst of this unprecedented operating environment, we continue to achieve positive financial results,” Twin River chief executive George Papanier commented. “Our significant margin expansion and early returns from our acquired properties in Kansas City and Vicksburg drove an increase in adjusted EBITDA year-over-year, even amid continued limited capacity.
“These results are a testament not only to our dedicated management team and valued employees, but also to our proven business model,” he added. “I am very proud of how hard the teams at the property level are working to keep our customers and team members safe during this challenging environment.”