Casino and racetrack operator Twin River Worldwide Holdings has posted its financial results for the third quarter ended September 30, 2019, showing revenue up and operating income down year-on-year.
Revenue for the third quarter of 2019 increased 17% to $129.3m from $110.5m in the third quarter of 2018 driven by the effects of the acquisition of Dover Downs Hotel & Casino, which continued to exceed expectations contributing $25.9m of revenue in the quarter.
New competition in the New England market, and the associated increases in marketing and promotional activity, significantly impacted revenue in the third quarter at Twin River Casino Hotel.
Tiverton Casino Hotel, which opened in September 2018, continued to demonstrate marked resilience in the face of new regional competition. Also, overall performance at Hard Rock Hotel & Casino Biloxi remained strong.
Overall gaming revenue increased $6.2m, or 7.6%, to $88.3m; food and beverage revenue increased $5.9m, or 48.8%, to $18.1m; and hotel revenue increased $5.4m, or 94.7%, to $11.1m, in each case, in the third quarter of 2019 compared to the same period in 2018.
George Papanier, President and CEO, told investors: “I am very pleased that our proven corporate strategy of accretive growth, continued diversification of our portfolio and a meaningful return of capital to shareholders, continues to generate value for our stakeholders.
“While we experienced the anticipated short-term impacts of new competition at our Twin River Casino Hotel in the quarter, we continued to reap the benefits of our disciplined M&A strategy, with Dover Downs and Tiverton both performing extremely well this quarter. Our overall plan is on-track and the long-term value proposition we have laid out for our investors remains intact.”
