AC casino profits fall 7.4 percent in 2011
April 4th, 2012 at 11:35:02 PM
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ASSOCIATED PRESS April 4, 2012, 4:17PM ET
AC casino profits fall 7.4 percent in 2011
By WAYNE PARRY
ATLANTIC CITY, N.J.
Atlantic City's casinos saw their gross operating profits decline by 7.4 percent last year, to just under $495 million.
New Jersey Division of Gaming Enforcement figures released Wednesday show the 11 casinos operating at the end of last year posted a gross operating profit of $494.9 million. That's down from $534.6 million in 2010.
It was the latest discouraging news for Atlantic City, which recently lost its status as the nation's No. 2 casino market to Pennsylvania.
Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges. It is a widely accepted measure of profitability in the casino industry.
The city's hotel occupancy rate held steady at just over 82 percent last year.
The numbers were better for the fourth quarter of 2011. Over the final three months of the year, the casinos' gross operating profit increased by 26.1 percent from the same period in 2010, to $78.5 million.
For the full year, four of the 11 casinos showed increases in their gross operating profits. They were: Caesars Atlantic City, up 21.5 percent to $87.3 million; Trump Taj Mahal Casino Resort, up 9.1 percent to $55.3 million; the Showboat Casino Hotel, up 7.4 percent to $48.4 million, and Trump Plaza Hotel and Casino, which went from a $2.3 million operating loss in 2010 to a $2.6 million operating profit in 2011.
Resorts Casino Hotel reduced its gross operating loss from $18.5 million in 2010 to $13.8 million last year. The Atlantic Club, which spent last year operating as The Atlantic City Hilton Casino Resort, then ACH, saw its gross operating loss increase from $19.2 million in 2010 to $20.2 million last year.
The Golden Nugget, which began the year as Trump Marina before being sold in May, reduced its gross operating loss from $8.3 million to just over $6 million.
The biggest decline in gross operating profit was at the Tropicana Casino and Resort, down nearly 50 percent to $17.6 million. Bally's Atlantic City saw its gross operating profit fall by 31.6 percent to $48.7 million; Harrah's Resort Atlantic City was down 16.5 percent to $112.3 million; and the Borgata Hotel Casino & Spa was down 6.9 percent to $162.5 million (which was the largest profit in the city).
The Borgata had the highest average hotel room rate at $134.14. The Atlantic Club was cheapest at $65.88. Caesars had the highest occupancy rate for the year at more than 93 percent.
With Revel's opening Monday, the city now has 12 casinos.
AC casino profits fall 7.4 percent in 2011
By WAYNE PARRY
ATLANTIC CITY, N.J.
Atlantic City's casinos saw their gross operating profits decline by 7.4 percent last year, to just under $495 million.
New Jersey Division of Gaming Enforcement figures released Wednesday show the 11 casinos operating at the end of last year posted a gross operating profit of $494.9 million. That's down from $534.6 million in 2010.
It was the latest discouraging news for Atlantic City, which recently lost its status as the nation's No. 2 casino market to Pennsylvania.
Gross operating profit reflects earnings before interest, taxes, depreciation, and other charges. It is a widely accepted measure of profitability in the casino industry.
The city's hotel occupancy rate held steady at just over 82 percent last year.
The numbers were better for the fourth quarter of 2011. Over the final three months of the year, the casinos' gross operating profit increased by 26.1 percent from the same period in 2010, to $78.5 million.
For the full year, four of the 11 casinos showed increases in their gross operating profits. They were: Caesars Atlantic City, up 21.5 percent to $87.3 million; Trump Taj Mahal Casino Resort, up 9.1 percent to $55.3 million; the Showboat Casino Hotel, up 7.4 percent to $48.4 million, and Trump Plaza Hotel and Casino, which went from a $2.3 million operating loss in 2010 to a $2.6 million operating profit in 2011.
Resorts Casino Hotel reduced its gross operating loss from $18.5 million in 2010 to $13.8 million last year. The Atlantic Club, which spent last year operating as The Atlantic City Hilton Casino Resort, then ACH, saw its gross operating loss increase from $19.2 million in 2010 to $20.2 million last year.
The Golden Nugget, which began the year as Trump Marina before being sold in May, reduced its gross operating loss from $8.3 million to just over $6 million.
The biggest decline in gross operating profit was at the Tropicana Casino and Resort, down nearly 50 percent to $17.6 million. Bally's Atlantic City saw its gross operating profit fall by 31.6 percent to $48.7 million; Harrah's Resort Atlantic City was down 16.5 percent to $112.3 million; and the Borgata Hotel Casino & Spa was down 6.9 percent to $162.5 million (which was the largest profit in the city).
The Borgata had the highest average hotel room rate at $134.14. The Atlantic Club was cheapest at $65.88. Caesars had the highest occupancy rate for the year at more than 93 percent.
With Revel's opening Monday, the city now has 12 casinos.
In a bet, there is a fool and a thief.
- Proverb.
