The CEO and co-chairman of Monarch, John Farahi, said “competitive pressure in Reno,” as well as the “current macroeconomic environment” was to blame for the company’s slight dip in revenue growth in Q3.
In the 2023 third quarter, the company generated net revenue of US$133.0m compared to $133.7m in the prior-year quarter.
Adjusted EBITDA was $49.2m, leading to an adjusted EBITDA margin of 37 per cent.
Casino and hotel revenues decreased four per cent and 0.9 per cent year over year, respectively, while food and beverage revenues increased 5.3 per cent.
“At Monarch Black Hawk, we are working to further expand market share among mid-to-upper tier players,” said Farahi. “We remain confident that our market-leading casino resort amenities position Monarch Black Hawk for further growth and market share gains.
“At Atlantis, third quarter results were impacted by what we believe to be an irrational promotional environment driven by our competitors. Our primary focus remains the ongoing enhancement of the property and we expect to begin a redesign and upgrade of the third Atlantis hotel tower in early 2024.
“We remain committed to returning capital to our stockholders. Our strong balance sheet and free cash flow position us to invest in our existing properties, pay cash dividends and consider potential share repurchases under our existing share repurchase authorisation. We continue to evaluate potential acquisition opportunities where we can employ our development and operating expertise in a financially prudent manner.”