Entertainment
Golden Entertainment, the company operating Las Vegas’ The Strat, is bullish on 2025, believing that business conditions will improve. During the company’s latest earnings call, executives weighed in on the matter, expressing confidence in the business’ near-term success.
The Operator Is in Strong Position Despite the Setbacks
Charles Protell, Golden Entertainment’s president and chief financial officer, said that Q4 2024 concluded a “transformative year” for the company. As was the case with many gaming businesses, the year was a period of change for the casino operator, which streamlined its portfolio.
While the Q3 and Q4 results were somewhat weak, partly due to the weak performance of the second F1 race in Vegas, the company is convinced that its continued investments will soon start paying off.
We are confident in our business prospects for 2025 with expected organic growth to come from improved performance at The STRAT, stabilized revenues in our new taverns and the rest of our portfolio benefiting from the continued strength of Nevada’s economy.
Charles Protell, president & CEO, Golden Entertainment
Protell added that his team remains committed to exploring options to generate shareholder value. Potential strategies include M&A activity and modernization across its land-based assets.
Speaking of business opportunities, Blake Sartini, Golden Entertainment’s chair and chief executive officer, noted that the business is in a favorable position to explore strategic alternatives.
Golden Entertainment Is Exploring Opportunities
Sartini echoed Protell, saying that Golden Entertainment is actively looking for new business opportunities. He noted that this continues efforts that were already present in Q3 2024.
Protell, on the other hand, elaborated that his team is not interested in small operations that are “capital deferred to the point it doesn’t make sense.” Instead, his team is in a position where it could happily remain patient.
However, Protell admitted that patience will not be sufficient to tackle the company’s waning share price. On the contrary, the lagging shares are a reason for Golden Entertainment to be proactive and pursue transformation activities.
Protell further clarified that Golden Entertainment wouldn’t be interested in single-asset deals outside Nevada.
The Company Relies on Recovery in Nevada
In Nevada, Golden Entertainment continues to recover after a very weak Q3. Since then, slot play has continued to gradually improve and so has property occupancy.
The fourth quarter of 2024 saw Golden Entertainment’s casino EBITDA in Nevada rebound as margins increased to 46%.
The positive trend continued in January, offsetting some of the decline in Q3.
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Fiona Simmons