Hard Rock profit jumps 72 percent in first quarter

Wednesday, April 23, 2003 | 11:04 a.m.

The parent company of the Hard Rock Hotel & Casino in Las Vegas on Tuesday reported a first quarter profit of $2.6 million, a 72 percent increase over a profit of $1.5 million for the same quarter of last year.

Hard Rock Hotel Inc. generated net revenue of $33.9 million, an 8.2 percent increase. Improved food and beverage revenue, casino revenue and hotel revenue contributed to the higher performance, Hard Rock Chief Executive Officer Peter Morton said.

Casino revenue rose 6.4 percent, to $14.3 million during the first quarter. Food and beverage revenue rose 12.8 percent, to $11.2 million. And hotel revenue rose by 11.3 percent, to $7.4 million.

Morton said Tuesday he was pleased with the results "in what has been a difficult market."

Retail revenue fell 9.6 percent, to $2 million.

Cash flow rose 10.1 percent, to $8.7 million, due to a decrease in marketing and entertainment expenses. The decrease was primarily driven by a shift in the property's annual Howard Stern live broadcast to April 2003 from the first quarter, when the broadcast was aired a year ago.

Cash flow is defined as earnings before interest, taxes, depreciation and amortization and is a key performance indicator in the casino industry.

Table game volume was up 4 percent, slot machine volume was up 11 percent and the Hard Rock's average daily room rate jumped 13 percent from the year-ago quarter, to $128. The property's occupancy was 93 percent, the same as last year.

At least four major music acts, including the Rolling Stones, played the Hard Rock last year. This year has so far brought lesser names to the property. Ozzy Osbourne played at the property's Joint venue in March.