Stratosphere Casino’s New Owner Posts Record Earnings
The Stratosphere Casino and Hotel in Las Vegas, Nevada, will soon have a new owner. The new owners, Golden Entertainment, recently announced that it had achieved record financial earnings in Q2 of 2017. This is thanks to very strong revenue generated by slot machines in its Nevada casinos, as well as its restaurant gaming locations.
Golden Entertainment Will Soon Own the Stratosphere
Golden Route Operations is Nevada’s biggest tavern operators in the state, with over 50 different locations forming part of the PT brand. It is also the largest slot distribution, with over 10 000 slot machines being used in 980 locations. These locations are spread all over Nevada, as well as Montana. The company posted record earnings in Q2 of this year, earning $110 million. This equates to a near 8% increase over Q2 of 2016.
While the company’s revenue increased nicely, its net income actually dropped close to 40%. This drop in net income is being attributed to several factors, the chief of which is the merger of American Casino & Entertainment. This is thought to be costing the company around $850 million. When it is complete, Golden will own the Stratosphere Casino and Hotel, as well as two other Las Vegas-area casinos. These are the Arizona Charlie’s Casino and the Aquarius Resort in Laughlin. These casinos will join the three other gambling locations that Golden Entertainment already owns and operates.
Investors Not Excited About Golden Entertainment’s Performance
Despite the strong showing, investors don’t seem to be overly excited. The company’s stocks haven’t shown any improvement since the announcement was made. Golden Entertainment saw its shares on NASDAQ enjoy a three-month improvement, with the cost of each share climbing from $15 to over $20.
Some of the suggested reasons for this include some shareholders selling their shares and making a profit, while another is the purchase of the Stratosphere. While Golden Entertainment owns several casinos and operates thousands of slot machines, it has never operated a casino in Las Vegas. This could be making potential investors nervous, not to mention the fact that the Stratosphere is located on the Northern end of the strip. The part of the strip tends to struggle for business, as there is little reason for visitors to leave the main part of the strip.