Operator News
US – Pent-up demand drives 18 per cent increase for Monarch
By Phil - 22 July 2022
Monarch Casino & Resort generated net revenue of $115.3m for the second quarter ended June 30, 2022, an increase of 18 per cent from $97.7m in the prior-year quarter.
Casino, food and beverage, and hotel revenues increased 10.7 per cent, 28.7 per cent and 31.1 per cent year over year, respectively. The increase in revenues was driven primarily by the ongoing ramp-up of operations at Monarch Black Hawk. In the second quarter of 2021, both Atlantis and Black Hawk revenues benefited from COVID-19 related pent-up demand.
John Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch’s solid second quarter results reflect our strong market position in both Reno and Black Hawk. Our quarterly financial results benefited from the continued successful ramp-up of our recently expanded and enhanced Black Hawk property as well as our team’s ability to efficiently manage the business in an ever-changing operating environment.
“Net revenue and Adjusted EBITDA of $115.3m and $39.5m, respectively, were both second quarter records. We have been able to partially offset ongoing cost increases with price adjustments. Our ability to nimbly manage and invest in our properties, while maintaining a pristine balance sheet, has positioned us well for the second half of the year.
“In Reno, our redesign and upgrade of the original hotel tower at Atlantis, representing approximately 20 per cent of the property’s room inventory, was completed on schedule and on budget, with the rooms moving back into inventory ahead of the Memorial Day weekend. While Reno remains a very competitive market, we believe our focus on operational execution and capital investments in Atlantis will help us enhance our property’s award-winning appeal and competitiveness. We recently commenced upgrades of the property’s retail space and expect that project to be completed early in the fourth quarter of this year.
“Our favorable balance sheet positions Monarch to continue to evaluate potential acquisitions to drive long-term value for our stockholders.”
