Affinity Gaming reverses second-quarter net loss
Affinity Gaming reversed a second-quarter net loss, which the Las Vegas-based company's chief executive credited to a change in the casino operator's marketing approach.
Affinity, which owns the off-Strip Silver Sevens, the three Primm properties and casinos in Iowa, Missouri and Colorado, said its net income for the quarter that ended June 30 was $797,000, compared to net loss of $14.3 million a year ago. Affinity reported net revenue of $101.9 million, an increase of 2.2 percent.
The company is not publicly traded, but has publicly owned debt.
Affinity CEO Michael Silberling said on a conference call the company's casinos are focusing more on profitable high-level customers than low-tier customers.
Affinity grew cash flow 39 percent in the second quarter, which followed a cash flow increase of 30 percent in the first quarter.
"To our knowledge, no other competitor has matched our improvement in (cash flow) over this period," Silberling said.
Revenue at Affinity's Nevada casinos increased 3.3 percent to $60.4 million.
Silberling declined to comment on an offer by Illinois-based Z Capital, Affinity's largest shareholder, to buy the rest of the company. He said the issue is being handled by a board committee.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
