Golden Nugget Casino 2020 Financial Report Reveals Tremendous Growth

Stephen Abiola
Stephen Abiola
Online Casino New Jersey

Golden Nugget is the leading casino brand in the New Jersey gaming industry and there is a reason for that. The company’s numbers continue to place it at the top even for a year that most casinos saw heavy losses due to the Covid-19 pandemic. Golden Nugget’s 2020 financial report gives some insights into the company’s performance and how it will perform in the coming months. Overall, the figures appear to be on the positive side.

Golden Nugget’s 2020 revenue came to a close at almost $91 million against an operating income of $25 million.

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Golden Nugget might have seen its fair share of challenges but the casino seems to be doing just fine and making the right steps that still place it on top.

Revenue figures went as high as 64.4% from 2019 though the difference in expenses and revenue were not as decent. This was due to the acquisition cost of $4.1 million. However, things are now all rosy as Golden Nugget revealed a net loss of $31.7 million.

This comes from debt servicing in the form of interest expenses associated with a long-term loan outstanding against the casino’s ledger, the debt extinguishment costs associated with repaying the term loan totaling $25.4 million, and the amortization of deferred loan costs and debt premiums.

While that seems like a big cost on its part, the loan helped the casino to fund its operations though it incurred some extra costs in maintaining its credit standing. The company also went public last year which also played a role.

Golden Nugget is not the only casino to record huge losses for the year 2020 and looking at the numbers of other operators, its numbers aren’t too bad in the industry. However, things might not be getting better anytime soon considering the way things work in the online gambling industry. If the casino looks to build its brand and make up for its losses, it would have to spend more money to make even more money.

With the debt service and the recent revenue, Golden Nugget now has a steady flow of cash coming into the company which is the priority at the moment. This not only ensures that the company can carry out its operations but also indicates that it can expand on its biggest activities that take a chunk of its operating income, one of which is its marketing.

This year, Golden Nugget expanded its network area in the US when it launched in Michigan. The company also got an operating license in Virginia and introduced a new version of its New Jersey sportsbook in New Jersey. Golden Nugget has also gained market access into West Virginia and Illinois. With so much on its plate, it will require a good amount of capital to keep everything going smoothly.

Aside from the usual day-to-day operations, there’s also the cost of marketing to keep consumers aware of its products and latest offerings in the market. Additionally, there is the expense of ensuring that it stays afloat in different markets. It is common for gambling brands to record losses as they strive to build or maintain market share.

This is just the same for DraftKings which recorded a huge loss of $266 million for the quarter making Golden Nugget’s figures look like child’s play.

Golden Nugget continues to expand to every available market in the U.S where it competes and establishes market dominance just as it has in New Jersey Casino Industry.

Golden Nugget seems to know what it is doing and its 2020 financials show that the casino is on the right track.