Adverse weather & construction project hamper Full House Resorts
A series of adverse weather conditions, as well as the impacts of ongoing construction projects, are among the factors cited by Full House Resorts as a period of struggle was encountered through the past 12 months.
Following the recent opening of the group’s The Temporary by American Place in Illinois, and improvement work in Colorado, the casino operator saw revenue through the past year’s final quarter drop 16.62 per cent to $36.1m (2021: $43.3m).
This came via a significant drop in the group’s casino sub-segment to $25.58m (2021: $31.21m), with fellow decreases witnessed across food and beverage, hotel and other (included contracted sports wagering) to $6.23m (2021: $6.71m), $2.2m (2021: $2.43m) and $2m (2021: $2.9m).
On a state-by-state basis, Mississippi revenue declined 18.22 per cent to $18.4m (2021: $22.5m). This, said Full House, was “ adversely affected by the competitive launch of online sports wagering within nearby Louisiana that started in January 2022, colder than normal temperatures, and significant marketing promotions at a nearby competitor”.
In Indiana, as a result of additional competition in northern Kentucky and “significant snowstorms”, the Rising Star Casino Resort felt a slight Q4 revenue drop to $9m (2021: $9.7m).
Despite Bronco Billy’s Casino and Hotel having “shown significant growth since betting limits were eliminated in May 2021,” construction affected the group’s performance throughout the year, with fourth quarter revenue down 30 per cent to $3.5m (2021: $5m).
Daniel Lee, President and CEO of Full House Resorts, said of the ongoing work in the region: “At our Chamonix project in Cripple Creek, Colorado, we continue to make substantial progress. Drywall is being installed in guest rooms and the public areas.
“We recently installed the escalators from the entry level up to the second-floor meeting space, and are preparing for the installation of elevators. We continue to target an opening of Chamonix later this year, potentially with a phased opening beginning in the third quarter of 2023.”
Elsewhere, reflecting a “significant snowstorm” in the Lake Tahoe region, Nevada revenue dropped fractionally to $4.1m (2021: $4.3m).
The fourth quarter also saw net loss hit $7m versus income of $5m one year earlier, while a seasonally slower three month period more than halved adjusted EBITDA to $3.9m (2021: $7.9m).
The company said: “The change reflects adverse weather in December 2022; construction disruptions at Bronco Billy’s; the launch of competing online sports wagering in Louisiana; and increases in certain expenses, notably for property insurance and food costs.”
For the full-year, revenue dropped 9.36 per cent to $163.28m (2021: $180.15m), with Nevada the only geographical reporting segment to buck a trend of financial drops through the year.
Net loss swung to $14.8m from the income of 11.7m recorded one year earlier, while AEBITDA dropped 46.92 per cent to $32.13m (2021: $47.21m).
To close, Lee looked back on February’s The Temporary grand opening, and an uptick to felt across the coming weeks.
“We are very pleased with the positive response received from guests thus far, with many commenting that The Temporary is one of the nicest casinos in the area, despite being in a temporary structure. In its first twelve days of operation, we welcomed more than 40,000 guests through its doors,” he stated.
“Typical of many new casinos, we opened at less than full capacity. On opening night, for example, only approximately 80 per cent of our slot floor and 60 per cent of our permitted table games were available.
“Over the coming weeks, we expect to further augment the number of available games on our floor and increase the hours of operation for our table games, which currently operate from 2pm to 2am. As our team gains more experience, we also expect to operate the casino 24 hours per day, versus our current schedule of 8am to 4 am.”