2nd-quarter revenue up, losses down at Cosmopolitan
3 August 2012
The Cosmopolitan of Las Vegas reported a smaller quarterly loss Friday as business picked up across the board.
The $3.9 billion, 2,966-room Las Vegas Strip casino-resort said it lost $18.76 million in the second quarter ended June 30 vs. a loss in the year-ago quarter of $54.3 million. Net revenue of $165.7 million was up from $126.1 million.
Casino revenue continued to trail food, beverage and room revenue at the resort.
But the gaming tables and slot machines generated a 37.1 percent increase in revenue on a year-to-year basis, from $28.2 million to $38.7 million.
The increase was achieved even as the tables played unlucky during the quarter, holding 12.9 percent of the dollars wagered vs. 13.2 percent in the year-ago quarter.
Observers have noted that boosting activity on the casino floor is important for the Cosmopolitan.
In its quarterly report Friday, the Cosmopolitan said it continues to focus on increasing table and slot play — something it’s been working on since opening in December 2010.
These initiatives include “increasing the volume of slot play through leveraging our unique Identity guest loyalty program, retail floor promotions and building our database of slot customers during the initial ramp up period for the property,” the Deutsche Bank-owned resort said in its report.
With a large boutique-like hotel niche, the Cosmopolitan in the second quarter saw room revenue increase $17.6 million, or 38.3 percent, to $63.49 million, thanks to a combination of more rooms being available and the average daily room rate increasing from to $246 to $268.
The quarterly occupancy percentage was 87.3 percent, down from 91.4 percent.
The performance of the hotel was in line with fellow high-end Strip operators Wynn Resorts Ltd. and Las Vegas Sands Corp., which earlier reported second quarter business was steady at their Las Vegas resorts.
The second-quarter earnings reports so far indicate the high-end business in particular appears to be holding up on the Strip, which is benefiting from an overall 2.4 percent increase in visitation to Las Vegas this year compared to 2011.
The Cosmopolitan’s food and beverage revenue increased 18.2 percent, or $12.8 million, to $82.89 million in the second quarter.
The company cited strong business at its Marquee nightclub and restaurants.
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