Casino and slot-route operator Golden Entertainment reported its first-quarter earnings last week. The company, formed last year through the merger of Lakes Entertainment and Golden Gaming, reported revenue of million, which represents a 7.4 percent increase over the combined earnings of the two legacy companies in the first quarter of 2015.
Lakes Entertainment, of the two the only public company, generated revenues of $12.8 million in last year’s first quarter.
Company: Golden Entertainment Inc. (NASDAQ: GDEN)
Earnings for the quarter were $2.2 million, compared to a loss of $1.7 million for Lakes in the first quarter last year. Earnings per share were 10 cents, compared to a loss of 13 cents per share during the same period a year earlier.
Golden Entertainment’s distributed gaming segment grew revenue 11.2 percent year over year to $68.6 million. That segment includes both the slot route and the company’s Nevada tavern business, which includes PT’s, Sierra Gold and Sean Patrick’s taverns. The company operates three casinos in Pahrump and one in western Maryland.
CEO Blake Sartini said on a conference call with analysts that results from the 1,000 gambling machines his company bought in Montana were included after the acquisition closed in the first quarter. He also said the company plans to open six new tavern locations this year in Las Vegas. The company opened a new brewery concept, PT’s Brewing Company, earlier this year.
In the company’s casino segment, revenue fell 2.7 percent year over year to $22.4 million.
A new sports book operated by William Hill recently debuted at Golden Entertainment’s Pahrump Nugget casino. Sartini said on the conference call that the company plans to roll out other new additions in the Pahrump market this year, as well as seeking other expansion opportunities.
Sartini also said the company is watching developments in Pennsylvania closely, looking to pursue licenses should the state legalize VLTs in bars or other new gaming venues.
