Golden Entertainment says focus on millennial customers reaps success
Golden Entertainment CEO Blake Sartini said Thursday during an earnings call that the company has been focusing on millennial customers with success.
Sartini reported an 18 percent increase in carded customer visitation by millennial gaming guests and a 24 percent increase in gaming revenue by the same group. Retail visitation by millennials increased 14 percent and net cash, food and beverage spending increased 19 percent.
“The appeal to the millennial audience has grown through updated menu offerings, enhanced beverage offerings, new gaming platforms and a robust sports deposit and smart-phone wagering option. Cosmetic and technical changes have also appealed to this group, and we continue to explore additional amenities to attract and retain this important demographic.”
After a successful trial, Golden Entertainment plans to roll out bar top video gaming devices using a first-to-market agreement with Interblock. The devices will feature the traditional video keno and video poker options as well as electronic table games, including blackjack, craps and roulette, which Sartini said “naturally appeal” to the millennial demographic and also have broad-based appeal.
“We recently received Nevada regulatory approval and now have the ability to expand this footprint,” he said.
Following the September opening of SG Bar, Golden Entertainment’s fourth new tavern location in Las Vegas, Sartini said the company is “on track” to open another by year’s end in northwest Las Vegas. The fifth tavern will offer about 35 gaming devices, “more than double what we provide in our typical tavern setting.”
Starting in January, the company also plans to open “six to seven” new wholly owned tavern locations in Southern Nevada.
“As a result, we anticipate operating approximately 60 wholly owned branded taverns in Nevada by the end of 2017,” Sartini said.
The company reported net revenues of $104.2 million, up 20.9 percent over combined net revenues in the prior year quarter; Lakes Entertainment and Sartini Gaming merged on July 31, 2015. Of that net revenue, $15.1 million came from Montana distributed gaming.
Despite a profitable third quarter, the gaming industry as a whole is seeing a slight decline in stock value, leading a few investors on the Golden Entertainment earnings call to ask about a stock buy-back program. Sartini said “nobody is more frustrated” than he about about a decline in stock value, but said there are no plans for a buy-back.
The markets could be reacting to a variety of factors, including angst over the presidential election, he said.
Contact Nicole Raz at nraz@reviewjournal.com or 702-380-4512. Follow @JournalistNikki on Twitter.
