Casino Major Eldorado Resorts reports 25.6% revenue decline amid COVID-19 shutdown
American hotel and casino entertainment company Eldorado Resorts has announced a sharp slump of 25.6 per cent in its revenue for quarter ended March 31, 2020, due to prolonged property closures forced by the notorious COVID-19 (coronavirus) pandemic.
The Nevada-headquartered casino company suffered an operating loss of $123.2 million during the January through March period as compared with operating income of $123.6 million for the same period last year. If we see it on the basis of GAAP (generally accepted accounting principles), the company suffered a loss of $175.6 million in the concerned quarter due to sharp revenue plunge.
Announcing the hefty operating loss and decline in revenue, the company said that its business was good in the months of January and February, but the COVID-19 shutdown in March hampered the business. It may be noted here that the shutdown went into effect across the nation during mid-March.
Tom Reeg, chief executive of Eldorado Resorts, said in a newly-released statement that the high number of visits by customers in January and February and the pace of revenue for those two months period.
Announcing the figures, Reeg added, “However, the strength in January and
February was offset by COVID-19 related weakness due to the mandated closure of all our properties by March 18, 2020.”
On the basis of per share, Eldorado suffered a loss of $2.42. It was a greater than expected loss as analysts had predicted a loss of 17 cents for the company in the concerned quarter. Revenue of $473.07 million also failed to meet Wall Street expectations.
The Nevada-based hotel casino entertainment company is not the only company in the casino business that has suffered a huge loss in the last quarter because almost all companies have posted losses due to corona virus-induced prolonged shutdowns. Thus, Eldorado joins a long list of casino companies in reporting first-quarter hefty losses and declined revenue. For instance, Caesars Entertainment has announced operating loss of $66 million for the January to March quarter, as revenue slumped by $13.6 million.
It is worth-mentioning here that Eldorado Resorts Inc. is in the process of being acquired by industry giant Caesars Entertainment. Reeg reiterated that his company is still moving ahead with plans to wrap up its $17.3 billion acquisition deal with Caesars Entertainment. The deal is expected to complete and close in June this year.
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