Full House Resorts Sees Net Profit in Q3
In Q3, Full House Resorts returned to net profit, with improved results at its new land-based casino in Illinois and an increase in revenue of 72.7% to $71.5m. The company opened The Temporary by American Place in Chicagoland, Illinois in February, and the property generated $23.9m in Q3 revenue, boosting the Midwest and South segment to $52.6m.
In addition to the new casino, Full House also launched sportsbook operations in Illinois through a deal with Circa Sports, offering both online and land-based sports betting. Construction is ongoing at the Chamonix project in Cripple Creek, Colorado, scheduled to open on December 26th, offering a range of casino gaming options to visitors.
Full House President and CEO Daniel Lee is positive about the company’s further growth prospects. He mentioned that The Temporary’s results continued to improve during the third quarter, with strong table games and slots business. He also expressed excitement about the upcoming opening of Chamonix, designed to be the best casino in the state of Colorado.
Looking at Q3 figures in more detail, revenue was higher across all areas. Casino revenue increased by 69.0% to $50.2m, rooms revenue was up by 33.8% to $9.1m, hotel revenue by 4.0% to $2.6m, and other operations, including contracted sports wagering, by 304.2% to $9.7m.
By segment, Midwest and South revenue climbed 77.4% in Q3, driven by the opening of The Temporary by American Place. Excluding results from The Temporary, same-store revenue declined by 3.04% to $28.7m. Revenue from the West segment edged up by 3.7% to $11.1m, and all other revenue came from contracted sports betting.
Operating expenses were higher at $61.2m, partly due to new costs associated with The Temporary by American Place. These expenses left a pre-tax profit of $4.6m and a net profit of $4.6m, in contrast to the previous year’s loss. Adjusted EBITDA also jumped 164.1% year-on-year to $20.6m.
For the year-to-date, revenue in the nine months to 30 September was up by 42.3% to $181.0m. However, total operating costs were 59.1% higher at $177.1m, leading to a wider pre-tax loss. Despite this, adjusted EBITDA was 46.5% higher at $41.3m.