Archon loss widens on higher revenue

Thursday, March 18, 2004 | 10:52 a.m.

Archon Corp.'s loss widened during the company's first fiscal quarter ended Dec. 31, the Las Vegas company said today.

The company reported a loss of $1.5 million during the quarter, 2 percent more than the same quarter a year ago.

On a per share basis, the company reported a loss of 31 cents compared to 30 cents in the last year's quarter.

Revenue increased 4 percent during the same period, to $11.7 million.

The company bought its primary asset, the Pioneer Hotel and Gambling Hall in Laughlin, in January after leasing the property. The company closed its Duke's Casino in Sparks in December.

The Pioneer hotel-casino reported $8 million in revenue, a 1 percent decline from last year's quarter. The property's revenue has flattened over the last few years after increases in the early 1990s, primarily due to competition from tribal casinos in areas such as California and Arizona, the company said in a quarterly earnings report filed today.

Archon owns a 27-acre parcel now leased by the Wet 'n Wild water park south of the Sahara hotel-casino and has announced plans to develop a resort on the site.

The company didn't elaborate on those plans but said the opportunity to develop a Strip resort could "greatly enhance the company's ability to generate future profitability."