Las Vegas Sun NewsM Resort’s owners post strong second-quarter financials
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The M Resort in Henderson.
Thursday
21 July 2011
6:56 p.m.
Sun Coverage
M Resort’s new owner Thursday reported double-digit increases in second quarter earnings and revenue companywide that were driven by cost-cutting measures and a slowly improving economy.
Penn National Gaming, which acquired M Resort in Henderson in June, reported $43 million in revenue in the second quarter and $6 million in second-quarter earnings at the resort before interest, taxes, depreciation and amortization — a key profit indicator in the casino business. Those figures represent year-over-year increases of 3 percent and 24 percent, respectively. The property’s occupancy was 91 percent in June.
Overall, 13 of the Pennsylvania-based company’s 15 casinos nationwide reported higher second quarter earnings compared with a year ago.
Recent efforts to market the M to thousands of Penn National customers nationwide have boosted business at the resort, which has struggled in the recession. Penn bought the resort, located at the southern end of Las Vegas Boulevard, from its bank lenders at a vast discount.
Penn, which has multiple casino projects underway nationwide, is trolling for casinos in Las Vegas and beyond. The company has expressed interest in acquiring a major resort on the Strip, though executives offered no further information Thursday on potential discussions.
Penn has emerged as one of the nation’s best-capitalized casino companies after it avoided a potentially ruinous acquisition by a private equity firm as the economy worsened. Penn has even more purchasing power after obtaining $2.15 billion in new financing this week.
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Liz Benson, you have got to be kidding me with the text of your subtitle "driven by cost-cutting measures and a slowly improving economy." If you bothered to read their results, it was clear a huge majority of their revenue and EBITDA increases came from new properties in Vegas and Maryland and the expansion/legalization of table games at their West Virginia and Pennsylvania properties. That has nothing to do with cost cutting and/or a "slowly" improving economy.
If Penn Gaming starts cutting corners in the buffets and other services the place will lose business big time. Penn Gaming is known in the northeast as running buffets with cheap food. If you like college cafeteria food go one of their casinos in the northeast.