Twin River Worldwide Holdings, Inc., aided by results from Dover Downs, posted higher revenue in the second quarter.
Highlights
- Revenue increased 29.2 percent to $143.2 million
- Gross gaming revenue increased 26.5 percent to $228.0 million
- Net income decreased by 15.4 percent to $17.2 million
- Dover Downs had a solid performance with $25.8 million of revenue
“We are pleased with the Company’s results in the quarter as the financial performance at Dover exceeded our already high expectations and our Rhode Island operations performed well despite some softness in the New England gaming markets in the second quarter,” said George Papanier, CEO. “Our emphasis of focusing on in-market and out-of-market accretive growth is also proving itself in the early going as we continue to grow prudently into a multi-state operator based in Rhode Island versus a single regional operator.”
Papanier had praised Dover Downs’ performance in preliminary report with securities regulators. He also says further changes are coming to the casino, hotel and conference center.
The earnings report indicated that gains in top-line revenue were primarily due to Dover Downs and a new casino in Rhode Island.
Overall gaming revenue increased $18 million, or 21.8 percent, to $100.2 million, food & beverage revenue increased $6.5 million, or 52.9 percent , to $18.8 million, and hotel revenue increased $5.9 million, or 107.6 percent, to $11.4 million, in each case, compared to the same period in 2018. Dover Downs has Delaware’s largest hotel.
Income from operations in the second quarter 2019 increased $2.4 million, or 7.7%, year-over-year to $33.8 million. This year-over-year increase, driven by the increase in revenues noted above, was aided by the addition of Dover Downs.
Earnings were held down by increased overhead costs as Twin River became a publicly traded company and expenses Dover Downs and construction projects. Twin River is also seeing growing competition from neighboring Massachusetts.
An upscale Wynn Casino recently opened in Boston.
Twin River also saw added costs from plans to acquire casinos in Kansas City and Vicksburg, MS.
Despite the costs of acquisitions, the company says it is has a low debt lead by industry standards.
