Eldorado Resorts (ERI) Regional Revenues Fall in Q3 2018

The Short Take:

  • YoY total revenue growth for Eldorado Resorts in the third quarter of 2018 came in at -2.2% with revenue hitting $503.9 million
  • The only regional revenue segment to see a YoY increase was the East region which eked out a +0.7% growth rate with its $127.7 million of revenue
  • Each of the other regions saw YoY revenue decreases with the largest being the Central region which fell 4.7% versus the same quarter last year

Eldorado Resorts (ERI) reported third quarter net revenue of $503.9 million.  This is a 2.2% year-over-year decrease.  So what geographic regions dragged down the results? It turns out that all but one region saw YoY decreases in revenue.

The largest regional segment by revenue, the West, saw a 3.9% YoY decrease in revenue.  The properties in the West brought in a bit over $129.1 million in revenue in the third quarter versus $134 million in the same quarter a year ago.  The West region contributed 25.6% of company-wide total revenue.

The East region was the only region to see a year-over-year revenue increase, but only slightly.  The 0.7% YoY increase brought the East’s revenue up to $127.7 million.  The East region made up 25.3% of ERI total revenue.

 

The South region contributes 21.1% of the company’s revenue.  In the third quarter the revenue in the South region was just shy of $106.6 million.  This represents a 1.3% YoY decrease.

The Midwest region’s third quarter revenue came in at a bit under $100 million, or a YoY decrease of 3.7%. The Midwest contributed 19.8% of Eldorado’s total revenue.

Read more: Boyd Gaming’s Midwest and South region had 6.5% YoY revenue growth

The Central region, which includes the newly acquired Grand Victoria casino in Illinois, equaled 8.1% of total company revenue.  Its 4.7% year-over-year decrease pegged the Midwest’s revenue at $40.6 million.

While the third quarter provided some disappointing revenue data for ERI, the fourth quarter will be interesting to watch.  That quarterly report will for the first time include results from several newly acquired properties including Belle of Baton Rouge as well as several Tropicana properties.

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