Golden Nugget Online Gaming, Inc. Reports Financial Results for the Third Quarter and First Nine Months of 2021 – PRNewswire

HOUSTON, Nov. 10, 2021 /PRNewswire/ -- Golden Nugget Online Gaming, Inc. (Nasdaq: GNOG) (the "Company"), a leading online casino operator, today reported its financial results for the third quarter and first nine months of 2021.

Third Quarter and First Nine Months Financial Highlights

Chairman and Chief Executive Officer, Tilman Fertitta commented, "We are pleased to deliver another quarter of double-digit revenue growth in an increasingly competitive market. Golden Nugget Online Gaming continues to pride itself in making the right investments in product, marketing and technology without wavering from our ultimate goal of profitability as we have achieved in New Jersey. With successful launches in West Virginia and Virginia now under our belt, we look forward to expanding into new jurisdictions where we can bring our players a premium player experience."

Technology & Content Updates

Business Update

President, Thomas Winter stated, "2021 continues to be a banner year for growth at GNOG. 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%. 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. 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."

Thomas Winter added, "Elsewhere, we expect to build on this growth with our recent launches in West Virginia and Virginia and look forward to continuing our expansion plans as we move closer towards bringing the premium content and innovative features, synonymous with the Golden Nugget brand, to Arizona, Ontario and Pennsylvania, subject to licensure and regulatory approvals."

About GNOG

Golden Nugget Online Gaming, Inc. is a leading online gaming company that is considered a market leader by its peers and was first to bring Live Dealer and Live Casino Floor to the United States online gaming market. GNOG was the recipient of 17 eGaming Review North America Awards, including the coveted "Operator of the Year" award in 2017, 2018, 2019 and 2020.

Cautionary Statement Regarding Forward-Looking Statements

This communication may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. When used in this communication, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of GNOG's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. These forward-looking statements include, without limitation, DraftKings' and GNOG's expectations with respect to future performance and anticipated financial impacts of the proposed merger, the satisfaction of the closing conditions to the proposed merger and the timing of the completion of the proposed merger. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside DraftKings' and GNOG's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against DraftKings and GNOG following the announcement of the definitive merger agreement between DraftKings and GNOG (the "Merger Agreement") and the transactions contemplated therein; (2) the inability to complete the proposed merger, including due to failure to obtain regulatory approvals or other determinations from certain gaming regulatory authorities, or complete other conditions to closing of the proposed merger in the Merger Agreement; (3) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement or could otherwise cause the transactions contemplated therein to fail to close; (4) the inability to obtain or maintain the listing of the Class A Common Stock of an affiliate of DraftKings on Nasdaq following the proposed merger; (5) the risk that the proposed merger disrupts current plans and operations as a result of the announcement and consummation of the proposed merger; (6) the ability to recognize the anticipated benefits of the proposed merger, which may be affected by, among other things, competition and the ability of the combined company to grow and manage growth profitably and retain its key employees; (7) costs related to the proposed merger; (8) changes in applicable laws or regulations, particularly with respect to gaming, gambling, sportsbooks, fantasy sports and other similar businesses; (9) the possibility that DraftKings, GNOG or the combined company may be adversely affected by other economic, business, and/or competitive factors, (10) market and supply chain disruptions due to the COVID-19 outbreak or other epidemics, pandemics or similar public health events; and (11) other risks and uncertainties indicated from time to time in GNOG's filings with the U.S. Securities and Exchange Commission (the "SEC"), including those set forth in the section entitled "Risk Factors" in the joint information statement/prospectus relating to the proposed merger filed with the SEC. GNOG cautions that the foregoing list of factors is not exclusive. GNOG cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see GNOG's filings with the SEC, including the section entitled "Risk Factors" in the joint information statement/prospectus relating to the proposed merger filed with the SEC. GNOG does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended ("Securities Act"), or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

Golden Nugget Online Gaming, Inc.

Unaudited

Consolidated Statement of Operations

(In thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Revenues

Gaming

$ 31,792

$ 22,938

$ 82,886

$ 59,890

Other

3,846

2,990

11,192

8,201

Total revenue

35,638

25,928

94,078

68,091

Costs and expenses

Cost of revenue

17,007

10,241

43,868

26,930

Advertising and promotion

16,618

5,284

47,496

12,870

General and administrative

7,858

2,187

21,260

5,648

Merger related expenses

2,763

-

2,763

-

Depreciation and amortization

76

55

160

138

Total costs and expenses

44,322

17,767

115,547

45,586

Operating income (loss)

(8,684)

8,161

(21,469)

22,505

Other expense (income)

Interest expense, net

5,180

11,311

15,983

19,077

Loss (gain) on warrant derivatives

18,944

-

(71,031)

-

Other expense (income)

(101)

-

331

-

Total other expense (income)

24,023

11,311

(54,717)

19,077

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Golden Nugget Online Gaming, Inc. Reports Financial Results for the Third Quarter and First Nine Months of 2021 - PRNewswire