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StumbleTropicana Entertainment posts loss in second quarter
Tropicana Entertainment
The Tropicana Laughlin.
Friday, Aug. 20, 2010 | 3:51 p.m.
Gaming operator Tropicana Entertainment Inc. of Las Vegas on Friday posted a second quarter loss of $1.6 million on net revenue of $165.1 million.
The company said the overall results are not comparable to previous periods since the company's big Atlantic City property is not included in the comparable quarter for 2009.
Tropicana Entertainment Inc. is controlled by investor Carl Icahn.
The company, which in March emerged from the Tropicana Entertainment LLC bankruptcy, has Tropicana casinos in Atlantic City and Laughlin, as well as the River Palms casino in Laughlin, the MontBleu casino resort on Lake Tahoe and riverboat casinos in Evansville, Ind., Baton Rouge, La., Vicksburg, Miss., and Greenville, Miss.
The Tropicana Las Vegas hotel-casino was spun out of the bankruptcy to other investors and is not part of Tropicana Entertainment Inc.
Also in Las Vegas, a separate Icahn company owns the unfinished Fontainebleau gaming hotel.
In its quarterly earnings filing Friday, Tropicana Entertainment said it now consists of properties with 435,000 square feet of gaming space, 5,866 hotel rooms and 7,300 full- and part-time employees.
In commenting on the quarter, Tropicana Entertainment reiterated what most U.S. gaming companies have said through the first half of the year: "Weak economic conditions continue to adversely impact the gaming industry and the company. We believe our guests have reduced their discretionary spending as a result of uncertainty and instability relating to employment and the credit, investment and housing markets."
The company said its three hotel-casinos in Nevada generated net revenue of $31.1 million in the quarter, down from $36.2 million in the year-ago quarter; and an operating profit of $660,000 vs. an operating loss of $382,000 in the year-earlier quarter.
The second quarter occupancy rate for these properties was 56.9 percent, a 12.3 percentage-point decline from the 2009 period. The average daily room rate in Nevada was $41, a 5.8 percent increase as the MontBleu increased room rates to offset the decline in occupancy there.
Casino Aztar in Evansville, Ind., generated net revenue of $29.9 million, up from $29.1 million., and operating income of $5 million, up from $3.6 million. Tropicana Entertainment cited a 0.6-point increase in the slot hold percentage as well as a 1.8-point increase in the occupancy rate at the hotel there to 75.3 percent.
The Louisiana and Mississippi properties contributed net revenue of $26.5 million, down 15.2 percent from the comparable 2009 quarter. Tropicana Entertainment noted an 18.5 percent decrease in slot volume for those properties, with the Belle of Baton Rouge and Horizon Vicksburg hurt by the "continuing economic slowdown and reduced consumer discretionary spending.''
Revenue also fell at Horizon Vicksburg as it cut costs by closing its buffet and table game operations in the fourth quarter of 2009.
Tropicana’s hotels in the South reported second quarter occupancy of 50.4 percent, a 1.1-point decline from the 2009 period, while the average daily room rate of $64 was down 15.2 percent.
The Tropicana Atlantic City produced second quarter operating income of $4.8 million on net revenue of $77.6 million.
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Ufoparking, I think you might have two companies mixed up. The earnings for Tropicana Entertainment came out today. As the story says, Tropicana Entertainment doesn't own the Tropicana casino on the Strip.
But Tropicana Las Vegas, the Strip property, announced its earnings Aug. 11. Here's the link:
http://www.lasvegassun.com/news/2010/aug...
So they netted 165 million bucks, is this a loss or profit???
I love it. They took 165 million and lost 1 million. They have a fabulous accountant. Tropicana is fine. Tax laws are written by their friends in DC.
If they show more skin they will win.
environprotector --It says net revenue, not net profit. And you say you're a retired casino executive? Hmmmmm......
Has environprotector ever taken Accounting 101 with question like that? On the other hand I'm curious what is the meaning of "net revenue" in a casino context. In a department store, gross revenue is the money that people spend at the store and net revenue is the gross revenue minus returns. What is net revenue is a casino? Is it the house percentage take on all the money that is gambled?
This appears to be a common definition:
"The net revenue is equal to the total revenue less promotional allowances paid out".
Furthermore...
http://en.wikipedia.org/wiki/EBITDA
They should have never cut off the fun train circuling around the resort. It was always great hopping on it and take a sight-seing tour.
Next big mistake was to close down the poker room although they had regular action going on every day.
What's left is a crappy buffet with poor service, overpriced coffee shop with bad quality food and nice rooms that nobody really needs at this quantity. The slots couldn't be tighter, even the best videopoker machines at the Tropicana Express in Laughlin are mediocre at best. Not worth gambling there. I don't know much about the b-j and other table games. This place is gone long time for me.
From Switzerland
The Tropicana Express has probably the nicest pool and is a real jewel for the snowbirds. The problem I see is that the snowbirds typically don't gamble much, and if they get the rooms too cheap or even comped, what good is it for the casino?
The casino also attracks walking visitors by offering live music in the evenings, and sometimes a little buffet. That's the good part of it. They know how to cater to the non gambling tourists. Do they also know how to make gambling interesting? I don't see any improvements in that regard.
From Switerland
The Tropicana pissed me off. I bought a sandwhich and the bartender walked off the bar to tell me I cant eat it in the Lounge. There was nobody in the lounge. I think that was rudiculous. Thats not what pissed me off. What pissed me off was 5 hours later I'm drinking at the bar with my wife and some young pretty girl is eating in the lounge. I asked the bartender "What the hell man"? bartender tells me the Beverage Manager said she could. I see this young boss kid in a suit walk up to the bar and orders a juice for the girl and takes it to her. I figured it out. That kid boss wanted to get his noodle wet. I bet she wasnt even 21 years old. Because I'm 36 years old I cant eat in the lounge? That really pissed me off. Screw Tropicana