The Stratosphere’s parent company, which also owns Arizona Charlie’s and the Aquarius in Laughlin, reported its third-quarter earnings today.
Company: American Casino & Entertainment Properties LLC
Revenue: $87.9 million, up 4.1 percent from $84.4 million in the third quarter of 2013. American Casino said in a news release that its hotel and food and beverage divisions drove the growth through higher occupancy, average daily room rates, higher resort fees and higher food covers.
Earnings: $600,000, compared to a $9.4 million loss during last year’s third quarter.
What it means: As with last quarter, nongaming revenue was key to the company’s revenue growth. Companywide, casino revenue increased 1.3 percent from last year to $47.7 million, while hotel revenue increased 8 percent to $19 million, and food and beverage revenue increased 9 percent to $18.8 million.
A similar story played out at the Stratosphere, where revenue rose 6.2 percent from last year. Gaming revenue increased slightly compared to last year by 0.3 percent, which the company said was mainly due to higher slot hold. Hotel revenue, meanwhile, increased 7.9 percent from last year, while food and beverage revenues increased 11.1 percent and tower revenue increased 7.3 percent.
At Arizona Charlie’s, revenue increased 2.8 percent compared to the same period last year. Driven by increased bingo volume and hold, casino revenue rose 2.1 percent. Hotel and food and beverage revenues increased at both Arizona Charlie’s locations.
In Laughlin, the Aquarius’ revenue increased 2.5 percent from last year’s third quarter. Due to more revenue from slot machines, gaming revenue rose by 1.4 percent compared to last year. The average daily room rate increased 5.5 percent, while occupancy decreased 0.4 percent.
American Casino’s consolidated total debt was $333.3 million at the end of the quarter.