Las Vegas-based casino operator Nevada Gold and Casinos has seen revenues increase in its third quarter, ending January 31 2018.
Net revenue increased to $18.1m compared to $17.9m in the third quarter of fiscal 2017. This increase was primarily driven by a $0.4m increase in Washington, partially offset by a $0.2m decrease from Club Fortune Casino.
Net revenues from the Washington state gaming operations were $13.6m compared to $13.2m in the prior year. This increase was primarily due to repositioning one location as a poker-only operation. Poker revenues increased $0.3m while other gaming revenue was unchanged for the period, despite removing 10 tables as a result of the poker move. Marketing expenses increased $0.2m in the quarter related to the repositioning and, coupled with increased wages, caused adjusted EBITDA to decrease to $1.5m compared to $1.6m in the prior year period.
"Our strategic poker repositioning in Washington has performed well and, as we reduce our target marketing in support of this move, we expect increased EBITDA contributions from the Washington portfolio,” said president and CEO Michael Shaunnessy. “Club Fortune was up against a strong prior year comparable, and a lower slot hold hampered the current year’s performance.”
