Golden Entertainment's Revenue Declines Across Segments in Latest Quarter
Segments of revenue
Golden Entertainment reported a decline in revenue across its various segments in the latest quarter. Gaming revenue decreased from $188.4 million to $165.2 million, representing a 12% decline. Food and beverage revenue remained relatively consistent at $44.5 million, while rooms revenue increased slightly from $30.8 million to $31.4 million. Other revenue also remained consistent at $16.6 million.
Despite the overall decline in revenue, Golden Entertainment experienced higher hotel occupancy rates and higher average daily rates, resulting in an increase in food and beverage revenue. This indicates that the company's hotel operations performed well during the quarter.
The company faced challenges in its distributed gaming segment, with a significant decline in revenue and Adjusted EBITDA. Revenues decreased by $9.3 million, or 10%, and Adjusted EBITDA decreased by $2.1 million, or 20%, for the three months ended September 30, 2023. This decline may be attributed to various factors, such as changes in consumer behavior or increased competition in the gaming industry.
Golden Entertainment divested its Rocky Gap operations on July 25, 2023. As a result, the decrease in revenues and Adjusted EBITDA for the three and nine months ended September 30, 2023, reflects the absence of Rocky Gap's results in the current year period. This divestiture impacted the overall financial performance of the company.
Golden Entertainment faced challenges in its distributed gaming segment, leading to a decline in revenue and Adjusted EBITDA. However, the company's hotel operations performed well, with higher occupancy rates and average daily rates contributing to an increase in food and beverage revenue. The divestiture of Rocky Gap operations also impacted the company's overall financial performance.