Gaming briefs for July 29, 2003

Tuesday, July 29, 2003 | 11:19 a.m.

Vegas flights added; financial problem disclosed

ATA Airlines, formerly American Trans Air, disclosed financial problems but also said it will expand its service to Las Vegas from Indianapolis and Chicago's Midway Airport.

A spokeswoman for Indianapolis-based ATA said the airline would increase its frequency between Indianapolis and McCarran International Airport from 13 nonstop round trips a week to 15 beginning Sept. 15.

In addition, beginning Oct. 16, ATA will add a daily round trip between Midway Airport and Las Vegas, increasing from three to four a day.

The spokeswoman said the airline is increasing the usage of existing jets to accomplish the expansion and won't cut service to other cities.

In addition to existing Indianapolis and Chicago service, ATA has five flights a week between St. Petersburg, Fla., and Las Vegas.

Separately, ATA's parent company, ATA Holdings Corp., today warned that it is in talks to restructure its debt and would not be able to meet loan obligations. ATA stock this morning fell 19 percent to $8.07.

Group sold for $233 million

LONDON -- CVC Capital Partners Ltd., a London-based buyout firm, agreed to buy U.K. spread-betting company IG Group Plc for 143 million pounds ($233 million).

CVC has teamed with IG managers led by Chief Executive Officer Nat le Roux to offer 255 pence a share in cash for the company. The bid was backed by IG's independent directors.

"The offer from the management team and CVC represents the most attractive means of realizing value for IG's shareholders," IG Chairman Stuart Wheeler said in a statement. Wheeler is not part of the team working to buy the company.

Record revenue buoys results

Las Vegas-based Ameristar Casinos Inc. rode record revenue to a 14.5 percent increase in second-quarter earnings, surpassing analysts' expectations.

The company, which owns six properties in four states, including Cactus Pete's and the Horseshu hotel-casino in Jackpot, Monday reported net income of $14.5 million, 54 cents a share, on revenue of $194.8 million for the quarter ended June 30. That compares with net income of $12.6 million, 47 cents a share, on revenue of $166.3 million for the same period a year ago.

A consensus of analysts surveyed by Thomson First Call had forecast earnings of 47 cents a share.

The increase in net revenue for the quarter was attributed to a 65.3 percent increase at Ameristar St. Charles in Missouri, which opened in August 2002. Officials said the St. Louis-area property continues to generate a strong return on investment.

Casino supplier narrows losses

A Las Vegas-based casino equipment supplier narrowed its losses in the second quarter, the company said today.

Mikohn Gaming Corp., which develops slot machines, player tracking systems and progressive jackpot technology, reported a loss of $2.4 million, 18 cents a share, for the quarter ended June 30. In the same period a year ago, the company reported a loss of $5.8 million, 45 cents a share. Analysts surveyed by Thomson First Call had projected a loss of 13 cents a share.

The results are based on revenue of $23.5 million, down from $24 million the same period a year ago.

The company reported cash flow of $6.1 million for the quarter, a 65 percent increase over the year-ago period, attributing the improvement to a $1.2 million charge in 2002 for labor relations, a bad-debt expense and inventory obsolescence provisions.

The company's stock hit a 52-week high of $7.50 a share on Monday, closing at $7.40. This morning, the stock was down 39 cents from Monday's close at $7.01 a share.