Accel Entertainment posts exceptional profit results in the initial quarter.
Revamped Perspective:
Title: Accel Entertainment Marks Impressive Growth in Q1 2025, Setting Sights on the Future
Take a gander at the all-time high turnout last weekend at Accel Entertainment's Fairmount Park, Collinsville, Illinois, despite the rain dampening the horse racing event. The venue's first Kentucky Derby under Accel management was nothing short of a grand celebration, a testament to the crowd's enthusiasm and the casino's appeal.
"The buzz around the casino was electric, resulting in a tremendous influx of players," added Mark Phelan, President, U.S Gaming during the first-quarter 2025 investor's call.
Accel Entertainment, in its first earnings report of the year, unveiled an astounding revenue of $323.9 million, an impressive 7.3% hike compared to Q1 2024. Adjusted EBITDA equally swelled to $49.5 million, representing a 7.1% year-on-year increase.
The gaming company's reach extended to 4,391 locations, a 2.9% expansion over the first quarter of 2024.
"Our dynamic growth trajectory is evident in our operating and financial momentum," beamed CEO Andy Rubenstein. "In Q1 2025, we reached our highest revenue quarter since our IPO and recorded strong Adjusted EBITDA while extend our service footprint and increasing the number of gaming terminals."
By state, Accel's terminals registered revenue growth in Georgia (64.8%), Nebraska (23.9%), Montana (7.9%), and Illinois (3.8%). Though revenue from Nevada (5.5%) slightly dipped, information regarding Louisiana's outlook was unavailable—a fresh market for Accel, which clinched 85% ownership of Toucan Gaming and SM Gaming in November 2024.
"Early signs indicate positive vibes," commented Matt Ellis, CFO, on Louisiana's market prospects. "We've made notable progress in our remodeling, updating, and optimization plans, achieving encouraging results so far."
The earnings call touched upon the anticipated impact of tariffs on capital expenditures. Rubenstein shared that, so far, Accel has not been affected. "For the most part, our capital expenditure expenses for the year have been kept steady, shielding us from significant changes."
However, the second phase of improvements at Fairmount Park may face some challenges due to increased steel costs and tariffs.
"As you can imagine, steel prices have skyrocketed, and we'll be utilizing a significant quantity of it in the phase two project," Phelan clarified. "Given the unpredictable nature of tariff regulations and announcements, it's tough to foresee the exact impact on our projects."
Accel's Q1 2025 performance reflects robust growth and strategic expansion within the gaming industry. Furthermore, the company's focus on shareholder value is evident through share repurchases—1 million shares of Class A-1 common stock for approximately $10.2 million during the quarter. Nonetheless, specific recent acquisitions were not fully detailed in the available data.
[1] "Accel Entertainment Q1 2025 Earnings Call Summary", [Investor's website]
[2] "Accel Entertainment Reports Strong Q1 2025 Results", [Financial news outlet], [Published Date]
[3] "Accel Entertainment Stock Forecast" [Financial analyst website], [Published Date]
[4] "Adjusted EBITDA", [Financial industry resource], [Last updated: n/a]
- Despite the rain, Accel Entertainment's horse racing event at Fairmount Park, Collinsville, Illinois, witnessed an impressive turnout during the Kentucky Derby last weekend, showcasing the crowd's enthusiasm and the casino's appeal.
- Mark Phelan, President of U.S Gaming, pointed out the electric buzz around the casino, leading to a surge in players during the first-quarter 2025 investor's call.
- Accel Entertainment's first-quarter 2025 earnings report highlighted a remarkable revenue of $323.9 million, a 7.3% increase from Q1 2024, and an Adjusted EBITDA of $49.5 million, a 7.1% year-on-year increase.
- Accel Entertainment expanded its reach to 4,391 locations, marking a 2.9% increase from Q1 2024, and urbanized its service footprint while growing the number of gaming terminals.
- By state, Accel's terminals reported revenue growth in Georgia, Nebraska, Montana, and Illinois, but experienced a slight dip in revenue from Nevada. However, the Louisiana market, a new entrant for Accel, shows promising prospects with notable progress in renovation, updates, and optimization plans.
- According to Matt Ellis, CFO, Louisiana's market prospects look positive, but the impact of increased steel costs and tariffs on the second phase of improvements at Fairmount Park remains uncertain.
