The company that runs the Stratosphere, the two Arizona Charlie’s properties and the Aquarius in Laughlin reported its third-quarter earnings today.
Company: American Casino & Entertainment Properties LLC
Revenue: $93.7 million, up 6.6 percent from the third quarter of 2014.
Loss: $6.7 million, compared to net income of $600,000 in the third quarter a year ago. American Casino said its income this year was hurt by a $13.6 million loss on debt redemption that it did not experience in 2014.
What it means: The increase in net revenue was the result strong performance in all major areas: more slot and table games revenue, increased occupancy, higher average daily rates and a boost in food and beverage covers, according to a company statement.
At the Stratosphere, net revenue rose 11.4 percent from last year to $46.1 million, with most revenue areas reporting year-over-year increases. American Casino said hotel revenue grew 20.5 percent, thanks to an increase in occupancy and average daily room rates. At the same time, casino revenue rose 8 percent, and food and beverage revenue increased 9.2 percent. But tower revenue declined 1.8 percent year over year, which the company statement attributed to lower average revenue per tower guest and a decline in admissions to SkyJump.
The two Arizona Charlie’s properties, meanwhile, reported net revenue unchanged from last year. Casino revenue dropped 2.7 percent because of lower coin-in at slot machines, as well as declines in hold from sportsbooks and bingo, the company said. But better occupancy and average daily rates led hotel revenue to grow 28 percent. Food and beverage revenue increased 2.2 percent.
At the Aquarius, net revenue rose 4.5 percent from last year, with all the big areas reporting revenue increases. As occupancy grew compared to last year, hotel revenue rose 6 percent. Casino revenue grew 3.3 percent, and food and beverage revenue rose 8 percent, according to the company statement.
American Casino’s consolidated total debt at the end of the quarter was $295.2 million.