New Dover Downs Hotel and Casino owner Twin River Worldwide Holdings reported lower net income for the fourth quarter and 2019.
The Rhode Island-based company reported that Dover Downs was a bright spot, for the after seeing intense competition in its New England stronghold.
Revenue for the fourth quarter of 2019 increased 17 percent to $130.4 million from $111.4 million in the fourth quarter of 2018. The increase was principally driven by the acquisition of Dover Downs, which continued to exceed expectations, contributing $27.6 million of revenue to the company’s results.
Income from operations in the fourth quarter of 2019 decreased $5.7 million, or 16.4 percent, to $29 million compared to $34.7 million for the same period last year, due to share-based compensation expenses and a decrease in income from Rhode Island casinos.
Partially offsetting these increases in operating expenses was income from operations from Dover Downs, which was acquired in the first quarter of 2019, of $3.4 million.
Prior to the Dover Downs acquisition, the Delaware General Assembly gave the state’s three casino-racetracks relief from the state’s high revenue sharing formula.
Net income for Twin River decreased $8.8 million, or 39.7 percent, to $13.4 million for the fourth quarter of 2019 compared to the same period last year.
Revenue for 2019 was $523.6 million, up from $437.5 million in the previous year. Net income for 2019 was $55.1 million, down from $71.4 million in 2018.
Competition in the New England market, and associated increases in marketing and promotional activity, continued to negatively impact revenue in the fourth quarter at the company’s Twin River Casino Hotel in Rhode Island. However, the company noted that the impact has moderated and revenue has shown signs of stabilizing.
Tiverton Casino Hotel, which opened in September 2018 in Rhode Island continued to demonstrate resilience in the face of the new regional competition, the company reported. Also, overall performance at Hard Rock Hotel & Casino Biloxi, MI remained strong.
Rhode Island casino revenues have been affected by the opening of the Las Vegas-style Wynn casino in Boston.
Twin River is acquiring casinos in Kansas City, MO. and Vicksburg, MI from Eldorado Resorts, Inc. as part of its expansion. Eldorado is shedding some of its casinos after acquiring gaming giant Harrah’s.