Affinity Gaming pointed to the cost of its racino referendum success in Colorado as it posted weakened operating income and cash flow figures in the latest quarter through to September 30.
The Las Vegas-based casino operator played a key role in opposing the Amendment 68 vote in the US state earlier this month, and highlighted it amongst “unusual” corporate expenses, which also included the hiring of new chief executive and work to “remediate” a recent data breach.
Affinity, which operates 11 casinos in four US states, grew year-on-year revenue in Q3 less than 1% to $99.5m. Adjusted EBITDA during the third quarter of 2014 was $12.5m, compared to $15.7m in the previous year.
With corporate operations expenses up by 128% year-on-year to $3.5m, cash flow fell by 20.4% to $12.5m and operating income slipped by 7%. Affinity and other Colorado casino operators were opposed to an amendment that would have allowed gaming and slot machines at Arapahoe Park racecourse, with the bill defeated in the November ballot.
New chief executive Michael Silberling, who joined in August, said that his priorities are to build the company’s leadership team and strengthen marketing efforts.
“I believe we are on a path to improved operating margins and overall performance as we continue to work hard to deliver added value to our business and shareholders,” Silberling added. “I am excited to have recently joined Affinity and be working with the new board in writing the next chapter for the company.”
source : www.igamingbusiness.com
