Affinity Gaming reports uptick in operating income

Las Vegas-based Affinity Gaming, owner of the Silver Sevens property in Las Vegas and three hotel-casinos in Primm, on Monday reported its strongest quarter of the year for property level adjusted cash flow.

The company, which recently unveiled a more than $3 million face-lift on 248 rooms at its Whiskey Pete’s property in Primm, reported a slight increase in operating income resulting from refocused promotional campaigns and marketing programs.

In a conference call Monday, Affinity CEO Michael Silberling said operating income for the quarter that ended Sept. 30 reached $9.1 million, 0.7 percent ahead of 2015’s third quarter.

For the quarter, net revenue of $96.4 million was down 5.4 percent from the same period in 2015, and gross revenue declined $9.9 million, or 8.7 percent because of the company’s ongoing focus on marketing to more profitable players.

“I am very excited about the upgraded room product we completed this month at Whiskey Pete’s,” Silberling said.

“The Whiskey Pete’s room remodel is the cornerstone of the initial phase of our Primm Valley enhancement plan,” he said.

Silberling said the multiyear effort will modernize, renovate and enhance the customer-facing areas of Buffalo Bill’s and the Primm Valley Resort in addition to Whiskey Pete’s. In addition to upgrading the food and beverage product, the company has repaved roads and parking lots in the area.

“The customer response and feedback to initial upgrades have been measurably positive on all fronts,” he said. “With the strong consumer response to the Phase One upgrades and continued Phase Two improvements in 2017, combined with our new business partner efforts at the Primm Valley Shopping Mall, we believe that the overall product will appeal to a broader audience.”

The company’s Nevada division, which also includes the Rail City Casino in Sparks, was the best performer of the group. The company has five other properties in Colorado, Missouri and Iowa.

Nationwide, the company reported adjusted cash flow of $17.7 million and operating net operating income of $9.1 million on net revenue of $96.4 million for the quarter. That compares with cash flow of $16.6 million and operating net income of $9 million on net revenue of $101.9 million for the same quarter a year earlier.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.