Reno-based Eldorado Resorts reported that net income for the quarter ending March 31 was $20.8 million compared to $945,000 a year ago, due primarily to its acquisition of Isle of Capri Casinos last year, although first quarter 2017 did not include Isle of Capri. Eldorado shares have increased 21 percent since the beginning of 2018 and have more than doubled in the last 12 months.
In first quarter 2018, Eldorado posted revenue of $440.2 million, more than double compared to first quarter 2017. That figure missed Wall Street forecasts, but Eldorado Chief Executive Officer Gary Carano said adjusted cash flow increased at 15 of the company’s 20 casinos during the quarter, “despite challenging weather that impacted operations nearly system-wide in January and February, as well as our Reno operations in March.”
Eldorado recently announced it will purchase seven casinos operated by Tropicana Entertainment in a joint deal with real estate investment trust Gaming and Leisure Properties Inc. Eldorado also announced it will buy the Grand Victoria Casino in Elgin, Illinois from MGM Resorts International. “We expect both transactions to be immediately accretive to our financial results, including free cash flow, and do not expect to make immediate significant cap-ex investment in the acquired properties,” Carano said.
In addition, the company recently announced a joint venture with Cordish Companies to develop non-gaming entertainment and hospitality attractions at the Isle Casino and Racetrack in Pompano Park, Florida. Carano said there was “$1 billion of casino EBITDA” within a 25-mile radius of the Pompano Park property and stated it would be “a crime” for the land surrounding the casino to go unused.
In Reno, Carano said, non-gaming revenue is growing faster than gaming revenue. He said Eldorado has renovated more than 1,000 hotel rooms and suites at the Eldorado, Silver Legacy and Circus Circus, updated food and beverage operations, opened a poker room and sports book and updated public spaces. “We have generated healthy returns from targeted investments that improve our guests’ experiences and elevate our properties overall competitiveness in their markets,” he stated.
