Gaming briefs for March 10, 2004

Wednesday, March 10, 2004 | 11:17 a.m.

Las Vegas casino-resort's fourth-quarter loss narrows

Hard Rock Hotel Inc. on Tuesday reported a narrowed loss in its fourth quarter that ended Dec. 31.

Hard Rock reported a $400,000 loss, 91 percent less than the $4.6 million it reported in the 2002 fourth quarter. Hard Rock revenue increased 12 percent to $32.4 million from $29 million, while operating cash flow more than doubled to $7.2 million from $3.3 million.

Improved casino and hotel revenues drove the improved performance, the Las Vegas company reported. Table games hold percentage jumped from 9.7 percent to 14 percent, it noted.

Hard Rock Chairman Peter Morton in a statement credited the cash flow jump to new revenue enhancement and cost-cutting programs, as well as to improved customer service.

Hard Rock casino revenue increased to $14.3 million from $12.1 million in the quarter, while casino costs and expenses declined during the same span, to $8 million from $8.6 million.

Hotel revenue jumped to $6.8 million from $6 million, while hotel costs and expenses were $2.2 million compared with $1.9 million.

Profit soars for casino, slot operator

Herbst Gaming, which operates Terrible's casinos on Flamingo Road, in Pahrump and in Searchlight as well as one of Southern Nevada's biggest slot routes, on Tuesday reported a 57.7 percent increase in annual net income in its year-end report of 2003 results.

Herbst Gaming net income was $8.2 million, up from $5.2 million, while revenue was up 25 percent to $312 million from $250 million in 2002, fueled by Herbst's purchase of International Game Technology's Anchor Coin slot route in February 2003.

Operating cash flow increased 40 percent for the year, to $55.8 million from $39.8 million. Herbst's casino operations revenue increased to $78.3 million from $72.5 million, while slot route revenue jumped to $241.8 million from $183.9 million.

Herbst's casino costs were $51.1 million for the year, up from $48.6 million, while route operation costs jumped to $192.8 million from $150.8 million, again because of the Anchor Coin acquisition.