US land-based and online sportsbook Affinity Gaming said that ‘tough’ environments in its core markets led to a year-on-year drop in revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) during the six months to June 30, 2014.
The company reported net revenue of $196.2 million (€146.6 million) in the first half of 2014, a drop of 2.6% on the $201.4 million posted in the corresponding period last year.
Affinity’s operations in Nevada proved to be the most successful after generating $115.5 million in revenue, compared to $61.1 million and $19.6 million in the Midwest and Colorado, respectively.
Total EBITDA for the period amounted to $26.6 million, which represented a drop of 25.8% on the $35.9 million achieved in the same period last year.
Affinity’s Midwest operations generated the most EBITDA with $17.2 million, while Nevada and Colorado could only manage $13.9 million and $2.4 million respectively.
First-half results were impacted by a disappointing second quarter in which Affinity also suffered losses in revenue and EBITDA.
Net revenue slipped by 0.7% from $100.3 million in Q2 of 2013 to $99.6 million this year while EBITDA dropped 28.8% from $17.8 million to $12.7 million.
David Ross, chief executive officer of Affinity Gaming, said: “While the operating environment remains tough in our core markets, we continue to analyse the effectiveness of our marketing and promotional campaigns and expect that as we implement efficiencies, we’ll be able to improve overall performance while best positioning our properties in this tough promotional and economic environment.
“The recent settlement of outstanding shareholder litigation and the amendment of the credit agreement are positive developments that will allow the company to focus on growth and value creation.”
source : www.igamingbusiness.com
