Affinity Gaming reveals ongoing growth as income climbs
Affinity Gaming has announced that despite a slight drop in revenue during the three months to March 31, it was able to achieve an increase in both income and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
The casino operator's operating income climbed 15.1% year-on-year to $12.4 million (€10.9 million), with net income also improving from a loss of $240,000 last year to a positive figure of $3.1 million.
Elsewhere, adjusted EBITDA increased by 10.9% from $18.2 million in the first quarter of last year to $20.2 million in the same period this year.
However, the company did note a slight decline in total net revenue, which fell 1.3% from $97 million to $95.8 million.
Michael Silberling, chief executive at Affinity, said: “With strong first quarter operating results, Affinity’s financial growth momentum continues in 2016 following the 30% growth in adjusted EBITDA in fiscal 2015.
“Our focus on driving profitable revenue at our properties, including our efforts to prioritise slot revenue as the core of our business, combined with process improvements and cost rationalisations led to a 10.9% increase in 2016 first quarter adjusted EBITDA to $20.2 million.
“With initiatives in place to derive additional operating and cost efficiencies we expect further growth in consolidated margins and adjusted EBITDA throughout 2016.
“Accordingly, we remain confident in our 2016 financial growth targets with the mid-point of our EBITDA expectations of $73 million representing full year growth of 14.1% over 2015 full year levels.
“With our diversified base of eleven regional gaming facilities, the appointment of strengthened corporate and operating leadership which has effectively instituted a broad range of operating, staffing and team building, cost discipline and process changes, we are optimistic about Affinity’s prospects for continued growth in 2016 and beyond.”
Related article: Affinity highlights regional growth as finances rise in 2015