Affinity Gaming reports 2nd-quarter earnings of $1.1 million
Las Vegas-based Affinity Gaming, operator of 12 casinos, including the Silver Sevens in Las Vegas, three properties in Primm and one each in Henderson and Sparks, reported its second-quarter earnings today.
Company: Affinity Gaming
Revenue: $100.3 million (down 2.6 percent from the second quarter of 2012.)
Earnings: $1.1 million (the company had a net loss of $2.1 million in the second quarter of 2012.)
What it means: Affinity improved cash flow over the previous year with most of the revenue decline attributed to low diesel fuel sales at Whiskey Pete’s in Primm while the company built a new travel center, which was completed last month.
The company also reported reduced visitation to its Primm properties, leading to reductions in casino, hotel and other revenue.
The company also spent more in marketing and promotions for the newly branded Silver Sevens, formerly Terrible’s Las Vegas.
Net revenue declined by 1.1 percent at the company’s three Midwest properties in Missouri and Iowa. The entrance to one of the company’s three Black Hawk, Colo. casinos was closed for the entire quarter, but the renovation project is expected to be completed this month.
Quote: “Our customers continue to be affected by the increase in gas prices, payroll taxes and several other macro-economic factors seen throughout the regional gaming industry. Further, our Midwest and Colorado properties were considerably affected by poor weather and construction disruption. As we move further into 2013, we continue to improve our marketing and promotional activities, in addition to maintaining cost-savings initiatives at all of our properties.” — Affinity Gaming CEO David Ross