Las Vegas Sun

March 29, 2024

Gaming briefs for July 28, 2004

Vegas company's shares fall 17 percent on earnings miss

Even as second quarter profit rose, shares of Ameristar Casinos Inc. plummeted by more than $5 per share this morning as the company reported earnings that were 5 cents per share below analysts' estimates.

The Las Vegas company also said it expected to earn 50 cents to 53 cents per share in the third quarter compared to analysts' estimates of 58 cents. Shares dropped more than 17 percent to $25.10 in early trading.

Deutsche Bank Securities analyst Marc Falcone said higher marketing costs and employee benefits hurt the company's profit margins, particularly at its Kansas City and St. Charles casinos in Missouri. Higher taxes in Iowa and greater marketing costs could likely be clipping margins in the third quarter, he added.

Revenue and cash flow at the company's two Nevada casinos fell. Revenue at Ameristar's Cactus Petes and Horseshu casinos in Jackpot at the Idaho border declined 2 percent to $15.5 million and cash flow fell 27 percent to $3.2 million.

Performance at the company's major riverboat casinos in the Midwest and South improved from last year.

Ameristar reported profit of $15.2 million or 54 cents per share compared to profit of $14.5 million or 54 cents per share a year ago. Analysts had expected the company to earn 59 cents per share in the second quarter.

The company reported revenue of $252.6 million, a 12 percent increase over the second quarter of last year.

LV airline adding route, flights

Las Vegas-based Allegiant Air today announced new non-stop round-trip service between McCarran International Airport and Dane County Regional Airport in Madison, Wis.

The new service will operate four times a week and begin Sept. 30. A 162-seat MD-83 twin-engine jet will be used on the route.

The airline, which will take delivery of new aircraft later this year to accommodate growth, will operate the Madison flights Thursdays, Fridays, Sundays and Mondays. Madison is the 13th city to be served by Allegiant.

Also, citing increased demand, the airline will add a third weekly flight to both Sioux Falls, S.D., and Bismarck, N.D., from McCarran beginning Sept. 28.

The airline, which flies to Sioux Falls Thursdays and Sundays, will add a Tuesday round trip. For Bismarck, which has flights Mondays and Fridays, the airline will add a Wednesday round trip.

Allegiant spokesman Mark Peterson said the airline has sold more than 10,000 seats on both routes since they were announced in March, resulting in the decision to add capacity.

The airline will begin flights between Las Vegas and Bellingham, Wash., and Redding, Calif., next week.

Casino fights fire lawsuit

SAN DIEGO -- Partners in a San Diego casino asked a federal judge to dismiss a wrongful death lawsuit filed by the family of a San Diego County girl killed in last year's wildfires.

The family of 16-year-old Ashleigh Roach filed a wrongful death lawsuit June 3 in San Diego Superior Court against Harrah's Entertainment Inc. of Las Vegas, partner of the Rincon Indian casino.

The suit alleges that Harrah's had a responsibility to provide better fire protection for the reservation, where the fire started.

Harrah's argues it can't be held responsible for the "start, spread, prevention or control" of the fire, which started half a mile from the casino.

LAS VEGAS OPERATOR:

Hilton Hotels Corp. of Beverly Hills, Calif., the third-largest U.S. hotel company and a big player in the Las Vegas lodging and time share industries, today said second-quarter earnings rose 39 percent to $75 million or 19 cents a share.

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