Losing streak: Occupancy, casino revenue fall at Stratosphere during second quarter
American Casino & Entertainment Properties, operator of the Stratosphere, two Arizona Charlie's and the Aquarius in Laughlin, reported its second-quarter earnings today.
Revenue: $88.4 million, up 0.8 percent from a year ago.
Earnings: $11 million. The company had a net loss of $2.8 million during second quarter of 2012.
What it means: Stronger casino revenue at the Aquarius offset lower occupancy and casino revenue at the Stratosphere. Net revenue at the Stratosphere fell 1.2 percent, primarily because rooms sold through the company's tour and travel segment fell 65.6 percent, company officials said.
Executives attributed 2012 losses to significant expenses – more than $1 million to refinance debt, payments for repairs at the Aquarius and Arizona Charlie’s Decatur and sales tax audit assessments at the Stratosphere. This year, the company invested $195,000 to operate acePLAYPoker.com, the company’s free poker website, which could generate revenue for real-money play when licensed.
Net revenue at the Arizona Charlie’s properties increased 2.6 percent due to higher slot machine holds and bingo revenue. Volume was flat.
While food and beverage revenue fell at Aquarius, casino revenue increased 4.2 percent and hotel revenue 3.7 percent. The food-and-beverage decline was attributed to the use of a temporary café while a permanent one was built.