Results improve for Riviera, Hard Rock in second quarter

Wednesday, July 21, 2004 | 10:54 a.m.

Riviera Holdings Corp., owner of the Riviera resort on the Las Vegas Strip and a Colorado casino, today reported a second-quarter profit of $829,000, or 23 cents per share -- an improvement from a loss in the year-ago quarter of $2.4 million, or 70 cents per share.

Revenue advanced 9.2 percent to $52.8 million in part due to strong growth in gambling market-wide in Las Vegas, the company said.

Riviera Las Vegas revenue grew 9.5 percent or $3.4 million, boosting cash flow by 26.3 percent, or $1.7 million. The hotel room ccupancy rate of 95.3 percent was up from 93.4 percent in the year-ago, and the average daily room rate rose $2.19 to $62.63.

"We are following the trend on the Las Vegas Strip with revenue increasing $3.4 million or 9.5 percent in the second quarter compared to the same period last year," said Robert Vannuci, Riviera Las Vegas president. "Casino revenues were up 8 percent over the second quarter of last year, as the business mix of customers in the hotel rooms and attending shows included more affinity groups (pool players and similar groups) with a better gaming profile."

"Our location on the Las Vegas Strip will continue to see more foot traffic as the Hilton Grand Vacations Club time shares, Wynn Las Vegas and recently announced luxury condominium projects draw more people to the north end," he said.

At Riviera Black Hawk, Colo., revenue was up 8.6 percent, helping to boost cash flow by 21.5 percent, or $755,000.

Separately, Hard Rock Hotel Inc., owner of the Hard Rock Hotel & Casino in Las Vegas, on Tuesday reported second-quarter net revenue increased $6.2 million, or 18 percent, to a record of $41.2 million.

Cash flow improved from $8.9 million to $11.1 million, lifting net income to $700,000 versus a loss of $2 million in the year-ago quarter.

"I feel that our position in the marketplace is as strong as ever. We continue to improve amenities to maintain this position such as our new nightclub, Body English, which had a successful opening over the Memorial Day weekend," Chairman and Chief Executive Peter Morton said.