Full House Resorts said improving results at its new land-based casino in Illinois helped it return to net profit in Q3, while revenue also increased 72.7% to $71.5m (£58.2m/€66.9m).
The operator opened The Temporary by American Place in Chicagoland, Illinois in February. Full House says the property generated $23.9m in Q3 revenue, boosting the Midwest and South segment to $52.6m.
Alongside this, Full House also recently launched sportsbook operations in Illinois via a deal with Circa Sports. Full House offers both online and land-based sports betting in the state, building on its offering in Colorado and Indiana.
As for wider developments, construction is ongoing at the Chamonix project in Cripple Creek, Colorado. The new venue is scheduled to open on 26 December, offering a range of casino gaming options to visitors.
With all this in mind, Full House president and CEO Daniel Lee is positive about further growth prospects for the business.
“As envisioned, results at The Temporary by American Place continued to improve during the third quarter,” Lee said. “Our table games business at The Temporary was strong initially and continued to build as we hired more dealers and increased the number of available table games. Our slots business also continues to ramp up, aided by our guest database that continues to grow meaningfully in size with every passing week.
“The Temporary’s available amenities also continue to expand, with the on-site sportsbook welcoming its first bets approximately one month ago.
“We are also excited to welcome guests to Chamonix – designed to be the best casino in the state of Colorado – in less than two months.”
Q3: a period of growth for Full House
Taking a closer look at Q3 figures, revenue was higher across all areas for the three months to 30 September. Casino revenue hiked 69.0% to $50.2m, while rooms revenue was up 33.8% to $9.1m, hotel 4.0% to $2.6m and other operations, including contracted sports wagering, 304.2% to $9.7m.
Breaking down performance by segment, Midwest and South revenue climbed 77.4% in Q3. This was on the back of the opening of The Temporary by American Place. This segment also includes Silver Slipper Casino and Hotel and Rising Star Casino Resort,
Excluding results from The Temporary, same-store revenue declined 3.04% to $28.7m.
Elsewhere, revenue from the West segment edged up 3.7% to $11.1m. This business covers the Grand Lodge Casino, Stockman’s Casino and Bronco Billy’s Casino and Hotel. It will also feature the Chamonix Casino Hotel when it opens next month.
All other revenue came from contracted sports betting, with this reaching $7.9m. Full House says $700,000 of this can be attributed to the Illinois sports skin in mid-August. In addition, $5.8m came from accelerated revenue related to two sports betting agreements that ceased operations in Q3.
Full House: back in the black
Turning to spending and operating expenses were 56.9% higher at $61.2m, partly due to new costs associated with The Temporary by American Place. Other expenses at Full House in Q3 reached $5.9m.
This left a pre-tax profit of $4.6m, in contrast to a $3.5m loss in the previous year. Full House also received $74,000 in tax benefits, meaning Q3 net profit was $4.6m, compared to last year’s $3.6m loss.
In addition, adjusted EBITDA jumped 164.1% year-on-year to $20.6m.
Heading for full-year net loss despite revenue rise
As for the year-to-date, revenue in the nine months to 30 September was up by 42.3% to $181.0m. This includes $131.6m in casino revenue, $25.4m from food and beverage, $7.1m hotel and $17.0m other operations.
Total operating costs were 59.1% higher at $177.1m and other expenses hit $15.9m. This meant a pre-tax loss of $12.0m, wider than last year’s $7.8m.
Full House paid income tax totalling $452,000, leaving a net loss of $12.4m, compared to a $7.8m loss in 2022. However, adjusted EBITDA was 46.5% higher at $41.3m.
Original Article
