Riviera Holdings posts loss

Wednesday, Nov. 3, 1999 | 10:25 a.m.

Riviera Holdings Corp. of Las Vegas today reported its third-quarter net loss widened to $2.2 million from $1.4 million in the year-ago quarter. Revenue was $38.9 million, down from $39.5 million in the 1998 period, the company said.

For 1999's first nine months, the company posted a net loss of $2.8 million, compared with a $4.1 million loss in the 1998 period. Revenue slipped to $119.9 million from $120.8 million.

Riviera Chairman Bill Westerman said the Riviera hotel-casino's room occupancy was 99.1 percent for the latest quarter. Slot revenue rose slightly "due to the continued success of lower-denomination slot machines and an 8 percent reduction of amounts paid to distributors of participation machines," he said.

Table and other game revenue fell $1.2 million and cash flow was off $600,000, to $5 million, due primarily to lower table-game drop and hold percentages, he said.

"Our Convention Center Pavilion expansion has generated additional revenues and profits," Westerman said. "We have been able to book approximately 157,000 additional room nights at an average daily rate of $82 over the next three years."

Riviera expects to open a 1,000-slot, 12-table-game casino in Black Hawk, Colo., in early 2000 but will no longer manage the Four Queens hotel-casino in downtown Las Vegas after 1999.

"In addition to the base annual management fee (for the Four Queens) of $1 million, the company had expected significant additional income to Riviera through an incentive earnings bonus and exercise of warrants, neither of which appears likely to be realized in the near future," Riviera said.