NASHVILLE, TN (CelebrityAccess) — Ryman Hospitality Properties, operators of the Grand Ole Opry and the Ryman Auditorium, announced revenue growth but pared profits for their third fiscal quarter.
According to their earnings report, RHP record total revenue for the quarter of $292.2m, up 10.4% from the same quarter in 2017 but the company noted that their results were impacted by the hurricane season.
“Overall, we are pleased with our third quarter 2018 results, which were slightly better than our expectations going into the quarter. Despite a couple of group cancellations and the impact of Hurricane Florence in this quarter, our hotels delivered the best third quarter on record in terms of Consolidated Revenue due to strong outside-the-room spending,” said Chairman and CEO Colin Reed.
Ryman also reported that operating income grew during the quarter as well, improving to $40m, up 6.9% from the same period in 2017. However, net income for the quarter slid to $22.5m, down by %5.4%.
“We anticipated a modest decline in our year-over-year future group bookings this quarter given the challenging year-over-year comparison and the strong bookings results we reported in the first half of 2018. Overall, the outlook for our group business continues to look strong, and we are excited to see that momentum continue with the anticipated opening of our joint-venture investment in Gaylord Rockies later this year. We are pleased to have the opportunity to increase our ownership stake in this property from 35.0 percent to approximately 62.3 percent, which we anticipate will close by the end of 2018,” reed noted.
The company’s entertainment segment did not fare as well in Q3. While revenue climbed by 22% to $43m for the quarter, operating income fell precipitously to $4.4m, -54.2% lower than the same segment in 2017.
Ryman attributed the sharp declines to Opry City Stage shutting down in September while the company “evaluates its market positioning for this venue.”
“Our Entertainment segment delivered strong top-line performance this quarter as our historical assets continue to enjoy popularity and visibility both inside Nashville and around the world, and our flagship Ole Red venue in Nashville continues to perform well. Our investment in this brand continues, and we are optimistic about the opportunities for Ole Red to expand to new markets in the years ahead,” Reed said.
Ryman also touted the $12 million dollar expansion of their flagship Grand Ole Opry House in time for the Opry’s 93rd birthday.
The planned expansion will expand the retail footprint of the venue, adding additional additional food and beverage options. The expansion also includes a redesigned box office, VIP lounge area with a backstage tour theater, and approximately 1,300 surface parking spaces on a property adjacent to the venue.
Construction for the project began in January and the first phase will debut sometime later this year.