Monarch Casino & Resort Monday reported a third quarter record profit of $22.3 million, or $1.15 per share.
Net revenue for the quarter ending September 30, 2021, was $111.6 million an 86.5% increase from the $59.9 million generated in the third quarter of 2020. The net income of $22.3 million is a 107.7% increase from the $10.7 million brought in during the third quarter of 2020 for the Reno, Nevada-based gaming operator.
According to Zacks Investment Research, the results exceeded Wall Street expectations based on the average estimate of $1.01 per share by three analysts surveyed by the company. The $111.6 million in revenue generated also exceeded the analysts’ estimates of $98.1 million.
“Monarch again delivered record financial results as our third quarter benefited from the strong ongoing pandemic recovery, economic and population growth in Denver and Reno, and the notable impact of the removal of betting limits in Colorado,” said Monarch Co-Chairman and CEO John Farahi in a statement. “Our focus on operational excellence and market-leading amenities has enabled us to leverage these tailwinds and drive consistent growth.”
Farahi cited the “ramping up” of operations at Monarch Casino Resort Spa Black Hawk in Colorado – including the increase of casino space by approximately 25% and restaurant seating by approximately 35%, and the removal of table game bets limits in Colorado and the addition of baccarat, as Monarch continues to grow market share in the Denver area.
Farahi also stated that there was strong demand across all segments at Monarch’s Atlantis Casino Resort Spa in Reno, and higher customer spend.
“That said, Atlantis’ results were negatively impacted by the California fires which lowered air quality in the Reno area to unhealthy levels for at least 26 days,” Farahi noted. “We also saw additional negative impact to visitation beginning on July 30, when mask mandates were again instituted across Nevada. Our ongoing investments in the property continue.”
Monarch shares Monday closed at $68.25 on the Nasdaq, up $1 or 1.49%.
