Riviera owner reports profit quadruples

Tuesday, April 26, 2005 | 11 a.m.

The owner of the Riviera hotel and casino reported that first-quarter profit quadrupled as business on the Strip soared.

Riviera Holdings Corp., which also owns a casino in Colorado, reported profit of $2.1 million or 18 cents per share compared with profit of $540,000 or 5 cents per share in the first quarter of 2004.

Revenue minus promotional costs rose 4 percent to $52.5 million.

Earnings before interest, taxes, depreciation and amortization -- a key profit indicator -- rose 9 percent to a quarterly record of $11.6 million. That figure doesn't include other costs such as equity compensation and development costs.

Profit at the Riviera Las Vegas was up 26 percent to $7.1 million. Revenue at the Las Vegas property was up 5 percent to $39.3 million. Earnings before interest, taxes, depreciation and amortization was up 17 percent to $8.9 million.

Profits were driven by a 7 percent increase in room revenue, a 6 percent increase in gaming revenue and a 5 percent increase in entertainment revenue.

Executives said they expect demand to increase in the second quarter with the opening of Wynn Las Vegas on Thursday, the Las Vegas centennial celebrations and the property's 50th anniversary this month.

"The Las Vegas market continues to grow beyond most analysts' expectations and Strip land values are appreciating at a rapid rate," Board Chairman William Westerman said.

Riviera stock rose more than 6 percent in midmorning trading to $15.64 per share.