Cash flow up 11.3 percent in second quarter

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Thursday, Aug. 19, 1999 | 10:52 a.m.

THE ASSOCIATED PRESS

ATLANTIC CITY, N.J. -- Atlantic City's 12 local casinos reported an 11.3 percent gain in second-quarter cash flow to $276.5 million from the same period last year, said the Casino Control Commission.

The casinos' net revenue rose 7.4 percent to $1.2 billion, while net income soared 164 percent to $29.4 million.

Casino analysts attributed the healthy growth to favorable weather, growing entertainment selections and an improvement in the city's appearance, The Press of Atlantic City reported.

"Part of it is the weather, part of it is natural growth in the market, having absorbed the Mohegan Sun (casino in Connecticut) and the slots in Delaware," said Harry Curtis, a gaming analyst with BancBoston Robertson Stevens. "This is the best quarter that Atlantic City has seen since 1995," said Harrah's president Timothy Wilmott. "The economy is good and finally catching up to the Atlantic City market."

A completion of its hotel and casino expansion project boosted Caesars Atlantic City's second-quarter cash flow by 27 percent to $43.8 million, while Bally's Park Place trailed closely in second place at $43 million.