American Casino & Entertainment Properties LLC, owner of four hotel-casinos in Southern Nevada, on Friday reported a smaller second-quarter loss as revenue increased slightly.
The company lost $2.8 million compared to a loss of $7.7 million in the second quarter of 2010. Cost-cutting led to improved results, with expenses falling from $82.8 million to $77.5 million.
Net revenue of $87.5 million was up from $86.6 million in the year-ago quarter.
Adjusted EBITDA — a profitability measure — increased 15.7 percent to $19.9 million.
EBITDA means earnings before interest, taxes, depreciation and amortization.
Results for the company improved broadly from the first quarter, when American Casino reported a wider loss and lower revenue compared to the first quarter of 2010.
The company said revenue at its 2,427-room Stratosphere in Las Vegas increased 3.1 percent on relatively flat casino revenue and a 13.6 percent increase in hotel revenue. The hotel posted a 14.7 percent increase in average daily room rate and flat occupancy.
The Stratosphere’s average daily rate improved from $42.87 to $49.17.
At the two Arizona Charlie’s in Las Vegas, net revenue increased 0.8 percent.
“The Las Vegas local market continues to be impacted by high unemployment and declining home values. In addition, heavy promotional activity by our competitors highlighted by multi-million dollar giveaways and deep food discounts continue to dominate the Las Vegas local market,” American Casino said in its earnings report.
At the Aquarius in Laughlin, net revenue decreased 2.1 percent as the property was hurt by discounting by competitors and by road work on Casino Drive, the main road through the Laughlin resort corridor.