Station Casinos posts $7.5 million profit for 2nd quarter
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Las Vegas locals gaming leader Station Casinos LLC posted a quarterly profit Tuesday as results continued to improve with the strengthening local economy and aggressive marketing efforts.
The company earned $7.5 million in the second quarter ended June 30. A profit comparison to the previous-year quarter is not meaningful because of accounting adjustments tied to the old Stations Casinos Inc. emerging from bankruptcy.
Net revenue grew 4.5 percent on a year-over-year basis to $312.2 million.
The company, which has 17 Las Vegas-area hotel-casinos and standalone casinos, plus Indian casino management deals, said in its quarterly financial report that the results were driven by a 4.7 percent increase in casino revenue to $222.3 million.
Also contributing were food and beverage operations with sales of $62.5 million, up 7.1 percent, and hotel room revenue of $28.2 million, up 9.1 percent.
In a market still struggling with an elevated foreclosure rate, Station said it drove increases in casino visitation with focused marketing efforts, including those involving its Boarding Pass players club.
One factor that may be helping the locals gaming market is that while unemployment is high at 12.1 percent, it’s down from 13.8 percent at this time last year.
Food and beverage revenue improved thanks to a 6.9 percent increase in the number of restaurant guests served, while the average guest check increased 2.2 percent.
Station said its hotels, including Palace Station, Green Valley Ranch Resort and Red Rock Resort, achieved an occupancy rate of 90 percent, up from 88 percent during the 2011 second quarter. The average daily rate increased from $71 to $74.