The Cosmopolitan of Las Vegas reported its first quarter earnings today.
Company: Nevada Property 1 LLC
Revenue: $189.8 million, up 3.8 percent from the same quarter one year ago.
Loss: $5.4 million, less than half as much as the property’s loss of $12.7 million in the same quarter last year.
What it means: This is the Cosmopolitan’s first full quarter under the control of its new owner, Blackstone Group, which took over the property late last year.
Among its major operating areas, the Cosmopolitan saw its biggest year-over-year quarterly improvement on the casino side, where revenue jumped 19 percent from 2014 to $58.4 million. The property’s table games hold percentage increased from 13.6 percent in 2014 to 15.2 percent this past quarter, while slot revenue increased 28 percent, according to its filing with the Securities and Exchange Commission. The filing said the Cosmopolitan remains focused on improving both table games and slot play.
Hotel revenue also increased notably, rising 6.4 percent from last year to $80.6 million. The filing attributed that growth to a 10 percent increase in the hotel’s average daily rate, which rose from $302 to $332, although occupancy declined by 2.9 percent.
Food and beverage revenue dropped 4.1 percent to $81.9 million. This stemmed partly from a $1.5 million revenue decrease at Rose. Rabbit. Lie. related to the conclusion of the Cosmopolitan’s relationship with entertainment company Spiegelworld there, according to the filing. The drop also came from a higher mix of group customers, who are often committed during mealtimes, and reduced occupancy, the filing said.
Revenue from entertainment, retail and other sources declined 1.3 percent to $8.2 million. The filing said the quarterly drop came from a lower number of entertainment events in the quarter and the decline in occupancy, which led to less business for its spa, salon and retail businesses.
The closure of Vegas Nocturne at Rose. Rabbit. Lie. last year spurred a legal dispute between the Cosmopolitan and Spiegelworld. Today’s filing noted that the Cosmopolitan and Spiegelworld tentatively agreed upon terms to settle the issue on March 18, “but such settlement is subject to final documentation and approval by the parties and the court.” The two parties entered into a settlement agreement on May 7, according to the filing.
“Neither party admits any liability to the other and both have agreed to dismissal of the lawsuit,” the filing said. The settlement terms didn’t materially impact the Cosmopolitan’s financial statements for the quarter.