CEO: Monarch Casinos benefits from strong economies in Reno and Colorado

February 21, 2018 3:27 AM
  • CDC Gaming Reports
February 21, 2018 3:27 AM
  • CDC Gaming Reports

Increased self-insurance claims and a $1.6 million remodel of the buffet restaurant at its flagship resort hurt fourth quarter profits at Reno-based Monarch Casinos.

Story continues below

Still, the company said Tuesday net income for all of 2017 grew nearly 4 percent while revenue jumped 6.3 percent.

Monarch Co-Chairman and CEO John Farahi said the company, which operates the Atlantis in Reno and the Monarch Casino in Black Hawk, Colo., said both markets present growth opportunities in 2018, but also have challenges.

Reno is benefitting from a “broad-based economic resurgence” due to the Tesla factory development, increased regional business, and a steady growth in employment and wages. The Reno-Sparks Convention Center has booked new shows and conferences, such as the Interbike tradeshow, scheduled for September.

“As the only resort directly connected to the convention center, we believe that Atlantis is well positioned to realize further growth across all areas of our business,” Farahi said.

He said the Monarch Black Hawk redesigned its casino and added a new parking facility that have helped drive growth to the Colorado market. The property will also add a hotel tower and other amenities that are expected to be completed in 2019.

“While the strengthening economy presents us with revenue growth opportunities in Reno and Black Hawk, we are experiencing the pressure of a tight labor market, which increases competition for talent and drives rising wages,” Farahi said in a statement.

For the quarter that ended Dec. 31, Monarch reported net revenue of $56 million, an increase of less than 1 percent from a year ago. Net income was $4.4 million, a decline of 32 percent from the 2016 fourth quarter.

For all of 2017, Monarch grew total revenue 6.3 percent to $230.7 million and profits were up 4 percent to $25.5 million.