Gross Operating profits in AC for 3rd quarter

Gross operating profit represents earnings before interest, taxes, depreciation, amortization and charges from affiliates. After those and other non-operating charges the industry reported a net profit of $234.1 million compared to a loss of $103 million for the same period a year ago.


The Borgata led the industry with gross operating profits of $55.9 million, a 19.6 percent decrease.

Harrah’s reported gross operating profits of $45.8 million, a 5.5 percent decline from a year earlier.
Caesars reported $28.9 million in gross operating profits, down 16.4 percent from a year earlier.
Bally’s Atlantic City earned $24.9 million in gross operating profits, 32.2 percent less than in the same period a year ago, and
Showboat reported $18.8 million in gross operating profits, a decline of 10 percent compared to the same period last year.

Trump Taj Mahal earned $27.7 million in gross operating profits in the quarter, a 20.6 percent decline;
Trump Plaza earned $927,000 in gross operating profits for the quarter, down 85.3 percent and
Trump Marina earned $247,000 in gross operating profits, down 96.2 percent.

Resorts reported a gross operating loss of $2.9 million for the quarter compared to a gross operating profit of $706,000 a year ago.

Tropicana reported a 18.7 percent decline in gross operating profits to $14.3 million;

Atlantic City Hilton reported $4.7 million in gross operating losses in the quarter compared to gross operating profits of $888,000 a year ago.
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History
The first Atlantic City casino opened in 1978. By 1981 they had over $1 billion in gaming revenue (the Philadelphia Casinos will break $1B this year). By 1984 with revenue of nearly $2B, Atlantic City surpassed the Clark County gaming revenue but not the entire state of Nevada. It looked like the baton had been passed to the city that was physically close to the major population centers, but the next year, Clark County regained the lead and held on to it.

From 2000 to 2005 "The Vegas strip" and Atlantic City were very close, but the "Vegas strip" exceed AC by a small percentage for all but one year. For 2006 and 2007 the Vegas strip pulled way ahead sparking the building boom, while AC peaked and began a slow decline well before the recession hit.

A strict comparison on the state level should include the state lotteries in PA and NJ. NJ sold $2.6 billion in lottery tickets compared to casino revenue of about $3.6 billion this year. Nevada does not have lottery by state law.

The recession and new competition have hit AC much harder than the Vegas Strip. Revenue keeps dropping in AC, but is more or less steady in Nevada as a whole (with Vegas Strip slowly gaining, and the rest of Nevada still dropping).

Maybe I didn't follow something. Did you report that every casino did worse than they did last year but the industry moved from a loss to a profit? Guess I'm glad I'm not an accountant.

Yeah, I was puzzled by that too... guess there had to be some extraordinary charges in that prior period.

Let me repeat the statement with some boldface.

Gross operating profit represents earnings before interest, taxes, depreciation, amortization and charges from affiliates. After those and other non-operating charges the industry reported a net profit of $234.1 million compared to a loss of $103 million for the same period a year ago.

The difference between gross and net is stated above.

For example:
In 3rd quarter of 2009 Ceasars Atlantic City had a Gross operating profit of $34.550 million but a net loss of $173.645 million
In 3rd quarter of 2010 Ceasars Atlantic City had a Gross operating profit of $28.886 million but a net loss of $8.682 million

I think it means that the NJ gaming industry took a lot of massive write-downs last year which they can't take again this year.So the net profit went from negative to positive. However every single casino had reduced revenue (-7% across the industry) and also a reduced gross operating profit (-24% across the industry).


If the state is going to put some money into the area to try and rejuvenate these places, theyahouls concentrate on a few key places.

Quote: pacomartin

Resorts reported a gross operating loss of $2.9 million for the quarter compared to a gross operating profit of $706,000 a year ago.

From the Press of AC Report on New Jersey's approving the sale of Resorts to Gomez and Bailey:
"The $31.5 million purchase price is a gigantic drop from the $140 million that Colony paid in 2001 to buy Resorts from Sun International Hotels. Sun shelled out $301 million in 1996 to buy Resorts from entertainer Merv Griffin and swallowed a huge loss in selling it to Colony. Griffin, the celebrity CEO and “Jeopardy” game show creator, took Resorts through two bankruptcies during his ownership in the 1980s and ’90s."
Could customer treatment be an important cause of the casino's losing 90 percent of its value in 14 years?

Quote: SanchoPanza

Could customer treatment be an important cause of Resorts losing 90 percent of its value in 14 years?

That may be a factor.

I think a bigger factor, in Resorts' case, is that it was an old building when it first opened. It was the first casino in AC to open. Unless I'm mistaken, it is also the last of the original building conversions that is still standing.

Quote: DJTeddyBear

Unless I'm mistaken, it is also the last of the original building conversions that is still standing.

Caesars bought and converted the Howard Johnson Regency Hotel. It originally opened as Caesars Boardwalk Regency Hotel.

Ballys bought and converted the Dennis Hotel.

Here's a link to a history of Atlantic City hotels.

http://www.chequers.com/magazine/author/piccolo.htm

One of the articles says that if all of the "projects" would have been completed, there would have been 50 casinos in AC.

Quote: pacomartin

Every single casino had reduced revenue (-7% across the industry) and also a reduced gross operating profit (-24% across the industry).

ATLANTIC CITY, N.J. (AP) – A new report paints a grim picture of 2011 in the nation’s second-largest gambling market. The research report by a major casino analysis company predicts Atlantic City’s 11 casinos will continue to lose money and market share this year, even as the competition all around them prospers.

The Spectrum Gaming Group report predicts Atlantic City’s casino revenue will fall more than 13 percent this year, while casinos in Pennsylvania, New York, Delaware and Maryland will increase their revenue by nearly 27 percent. This is mainly because other states continue to add casinos, while there’s nothing new on the horizon in Atlantic City this year.

The report projects that Atlantic City will have lost a staggering 41 percent of its business since 2006.

Quote: SanchoPanza

...while there’s nothing new on the horizon in Atlantic City this year.

I was about to say, "What about Revel? It's opening later this year."

Then I did some checking. I was not aware (or forgot) that construction screeched to a halt almost a year ago. Sigh...

Quote: SanchoPanza

Revel Casino "home page"

For what it's worth, I believe Sancho linked a fan page.

I think one of these are Revel's REAL home page
http://www.revelentertainment.com/
http://www.revelinac.com/

These two sites link each other, but neither links to the site that Sancho linked.