Operator News
US – Monarch sets new revenue record despite tribal competition
By Phil - 19 February 2024
In the 2023 fourth quarter, Monarch Resorts generated its best ever fourth quarter net revenue of $128.2m compared to $120.5m in the corresponding prior-year quarter. Casino, and food and beverage (F&B) revenues increased 8.3 per cent and 4.7 per cent, respectively.
The slight decline in hotel revenue in the 2023 fourth quarter reflects increased competitive pressures in Reno.
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Our net revenue of $128.2m and adjusted EBITDA of $43m represent 6.3 per cent and 3.4 per cent year-over-year growth, respectively, and were fourth quarter records, as were 2023 full year net revenue and adjusted EBITDA of $501.5m and $170.8m.
“Monarch Black Hawk’s operation continued to ramp up as we converted ongoing revenue growth into margin expansion and double-digit property-level EBITDA growth. Revenues grew across all segments as we continue to successfully maintain our market share growth trajectory among the market’s mid- and upper-tier players. We continue to face staffing challenges, driven by Colorado’s low unemployment and competition with the City of Denver wage rates.
“In Reno, the Atlantis is challenged by the continued growth of California tribal gaming and an extremely competitive promotional environment. Despite these factors and ongoing construction disruptions, we grew market share in the fourth quarter of 2023. We also completed the construction on the redesign and upgrade of the oyster and sushi bar restaurant. As of January 4th, we began the redesign and upgrade of 125 rooms on the third Atlantis hotel tower and we expect to complete this project by the end of the second quarter of 2024. We intend to redesign and upgrade the remaining rooms in the third Atlantis tower at the beginning of 2025 with a goal to have all 817 hotel rooms and suites redesigned and upgraded by the end of the second quarter of 2025.
“With a strong balance sheet and no debt, we are favorably positioned to continue investing in our properties and paying cash dividends, and to consider share repurchases under our existing share repurchase authorization. While growth through acquisition is a key focus for us, doing the right transaction is far more important in the long run than simply doing a transaction.”
