Golden Nugget Online Gaming Q3 2021 revenue up 37.4%
Soon-to-be DraftKings subsidiary lauds “banner year for growth” as active first-time depositors rise by triple digits
Golden Nugget Online Gaming (GNOG) has posted Q2 2021 year on year revenue growth of 37.4% as revenue hit $35.6m.
Company adjusted EBITDA dropped to a loss of $2.5m compared to a prior EBITDA figure of $8.5m achieved during Q3 2020, a decline attributed to the continued impact of “growth investments” in the Michigan market.
In tandem with this loss, GNOG reported widening net losses for Q3 of $31.3m, increasing substantially in comparison to a net loss of just $1.8m reported 12 months prior.
Net loss for the third quarter of 2021 includes a loss on warrant derivative liabilities of $18.9m, stock-based compensation expense of $3.4m, and $2.8m of acquisition-related expenses whereas no such loss or expenses were recognized in the prior year period.
Active first-time depositors (AFTDs) increased by 133.2% in Q3 2021, while the first nine months of 2021 saw AFTDs rocket 188.2%.
Addressing the operator’s results, GNOG president Thomas Winter suggested 2021 was continuing to be a “banner year for growth.”
“In Michigan, we continue to grow revenues, posting a 26.3% GGR increase over Q2 2021, while the rest of the market grew 4.7%,” Winter explained.
“Our market-leading growth in market share in the state during the quarter is a direct reflection of our steady focus on customer acquisition and retention, while our 33.6% quarterly growth in net gaming revenue, outpacing our GGR growth, illustrates our financially disciplined approach to new markets.
Winter continued: “In Q3, Michigan accounted for 70% of our new active depositors, net average revenue per user (ARPU) kept growing in line with our forecast and we expect this trend to continue, as the weight of returning players, especially VIPs, increases in our players mix.
“This customer loyalty gives us further confidence that Michigan will eventually be at par with New Jersey in our revenue mix,” he added.
GNOG deployed 103 new games in Michigan and 90 new games in New Jersey on web, iOS, and Android during Q3, with plans underway to increase its New Jersey offering to 1,000 games by Q4 2021.
In addition to live casino launches, GNOG has confirmed work to complete the expansion of its 1,800 sq ft live dealer studio, something which increases table capacity from 18 to 33 tables will complete by the end of 2021.
GNOG launched its sportsbook in West Virginia and Virginia during Q3, as well as expanding its existing agreement with Entain for a further three more years.
In preparation for its impending acquisition by DraftKings, GNOG has confirmed the temporary withdrawal of its interactive gaming certificate application in Pennsylvania, with plans to reapply after the deal closes.
“We now expect to commence operations in Pennsylvania, subject to regulatory approvals, at the end of the first quarter of 2022 and as a result of our delayed launch in Pennsylvania, we expect to come in at the low end of the range of our revenue guidance for the year,” GNOG said.