Eldorado Resorts’ (ERI) Casino Revenue Increases; Hotel Revenue Decreases

The Short Take:

  • Casino revenue made up 74.5% of total revenue for ERI during the third quarter of 2018, a 4.4% YoY increase
  • The Hotel segment brought in 9.2% of total revenue for the company and saw the worst YoY decrease of any of the company’s segments: down 2.6%
  • Food & Beverage revenue also saw a YoY decline, dropping 2.3% versus the same quarter last year

When Eldorado Resorts (ERI) reported its third quarter financials last week, one thing we were able to look at was how each of the company’s revenue segments performed.  ERI’s three main revenue segments are Casino, Food & Beverage and Hotel in addition to two other small contributors to revenue: Pari Mutuel Commissions and Other.

By far, the largest of Eldorado’s revenue segments is Casino.  In fact, casino revenue made up 74.5% of the company’s total revenue in the third quarter.  Here is a chart that shows the dominance of ERI’s casino revenue versus its other revenue segments:

 

In the third quarter, Eldorado brought in over $362.8 million from its casino operations.  Here is another chart that shows how casino revenue is the main revenue driver for ERI:

 

Third quarter 2018 casino revenue saw decent growth compared to the third quarter of 2017.  On a year-over-year basis, Eldorado’s casino revenue climbed 4.4%.  Here is a look at how the YoY growth of casino revenue stacks up against the company’s other revenue segments:

 

As you can see, the company’s two other main revenue segments, Hotel and Food & Beverage, did not fare as well on an annual growth rate basis.

Hotel revenue was the worst performing segment in the third quarter.  The $44.8 million in Hotel revenue represents a 2.6% decrease from the same quarter last year.  While the Hotel segment is not nearly as large of a factor for the company as the Casino segment, hotel revenue did account for 9.2% of total revenue in the third quarter.

Read More: Eldorado Resorts (ERI) Revenue by Region

The Food & Beverage segment performed a bit better than Hotels, but not by much.  Food & Beverage revenue fell 2.3% YoY.  This segment’s $58.2 million in revenue actually represents a larger portion of total revenue than the Hotel segment.  In the third quarter, Food and Beverage made up 11.9% of Eldorado’s total revenue.

Besides these three main revenue segments, ERI breaks out two additional segments, but they are very small in comparison.  Pari-Mutuel Commissions brought in $5.3 million during the quarter, a 3.5% YoY increase.  The “Other” category contributed $16.2 million to total revenue.

In the third quarter, and historically, Casino revenue dominated total revenue for Eldorado.  It will be interesting to see if this changes in upcoming quarters as the company begins to absorb its recent acquisitions of several Tropicana locations among other properties.  Having additional resorts in destination locations such Las Vegas and Atlantic City may begin to push up Hotel revenue.  We’ll keep an eye on all of the events as they unfold!

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