Regional casino operator Pinnacle Entertainment, on the verge of being divided up by two rivals, said Thursday its net revenues declined by less that 1 percent in the second quarter to $647.6 million.
The Las Vegas-based company’s net income grew nearly tripled to $21.8 million, or earnings per share of 35 cents, during the quarter that ended June 30.
In a statement, Pinnacle CEO Anthony Sanfilippo said the company’s financial performance “continued our trend of driving more efficient operations and improving our balance sheet.”
Because of its pending sale, Pinnacle did not conduct a conference call with the investment community.
Pinnacle is being bought by Penn National Gaming for $2.8 billion, however, operations of four of the company’s casinos are being acquired by Boyd Gaming Corp. for $575 million to alleviate any anti-trust concerns.
The deal has been approved by regulators in several states and is expected to close later in the year.
In the quarter, two of Pinnacle’s three operating segments reported revenue increases. The West segment grew 2.8 percent to $62.5 million where the Ameristar Black Hawk were driven by a mid-single digit increase in gaming revenues and continued marketing and advertising efficiencies.
In the Midwest, the gaming revenue grew less than 1 percent to $392.9 million, led by Belterra, which grew cash flow more than 20 percent. The Indiana casino is part of acquisition by Boyd Gaming.
In the South, casino revenue fell 10.9 percent to $190.9 million. Pinnacle said it flagship L’Auberge Lake Charles is “prudently managing its cost structure.” However, table gaming volume and hold percentage experienced normal volatility and both declined year over year, affecting the resort’s profitability during the quarter.
