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eno-based Monarch Casino & Resort reported a record in its Q3 earnings on Monday, and its shares traded on the Nasdaq exchanged soared Tuesday, closing up 8%, $5.49 a share, to $73.74 a share with volume more than twice the daily average.
The company reported net revenue of $111.6 million, an increase of 86.5% from $59.9 million in the prior-year quarter. Net income for the third quarter of 2021 increased 107.7%, and consolidated Adjusted EBITDA of $40.3 million saw an increase of $19.6 million, or 94.9%, over the same period a year ago.
This is due to the fact that the company that operates the Atlantis in Reno and the Monarch Casino Resort Spa Black Hawk has seen an increase in its activity and revenue by expanded gaming in Colorado, and improvements in the Colorado Mountain Resort.
“Black Hawk continues to ramp post-renovation and the removal of betting limits on table games and the introduction of baccarat,” Barry Jonas, an analyst with Atlanta-based Truist Securities, said in a note to investors on Monday, as reported by the Las Vegas Review-Journal.
“In addition, management noted they are gaining traction with regional VIPs since Amendment 77 went live, but remain in early innings,” Jonas said. “We see the property competing more and more with Las Vegas, given its newer amenities and expect a grand opening party early next year to help drive more VIP play”, he wrote.
Amendment 77, approved by the state’s voters in 2020, greenlit voters in Black Hawk, Central City and Cripple Creek, Colorado, the ability to expand wagering limits to above $100 a bet, as well as to allow for the playing of gambling games in addition to slot machines, blackjack, poker, roulette and craps. The state vote permitted the three cities to expand their offerings on May 1.
Monarch Co-Chairman and CEO John Farahi said in a press release that the company “benefited from the strong ongoing pandemic recovery, economic and population growth in Denver and Reno, and the notable impact of the removal of betting limits in Colorado.”
“Our Black Hawk operations are ramping up, and we are working diligently to complete the legacy facility transformation by year-end,” Farahi added in the release. “This addition will increase casino space by approximately 25% and restaurant seating by approximately 35%. In just a short time, the property has established itself as the leading casino resort in the greater Denver market, and we continue to grow market share.”
Farahi said the removal of table game limits resulted in an increase in new customer visitation, “particularly high value players from across the Front Range.”
“We have been able to manage the labor shortages and operate the hotel, and food and beverage outlets are at full capacity on our busiest nights,” he stated.
