Cash flow surges again for Affinity Gaming
The company that operates three resorts in Primm as well as the Silver Sevens in Las Vegas reported a double-digit percentage increase in operating income and its sixth straight double-digit percentage increase in cash flow despite a dip in revenue for the second quarter.
Las Vegas-based Affinity Gaming on Monday reported net income of $1.8 million on revenue of $94.7 million for the quarter that ended June 30, compared with net income of $797,000 on revenue of $101.5 million a year earlier.
Affinity CEO Michael Silberling attributed the increased profits to more effective management of promotional campaigns and marketing programs.
“We’re pleased with the financial trajectory of the business,” Silberling said in an interview after officials explained the company’s financial performance in a Monday earnings call. “We blew up the existing marketing plan and are getting back to fundamentals.”
Silberling, who just observed his second anniversary as CEO, said in Nevada, the company has upgraded the quality of the food product and has invested capital in upgrading hotel rooms in Las Vegas and Primm. The upgrades, which also included an investment in technology, enabled the company to increase room rates and deploy better yield management on rooms during busy periods.
He said customer counts may have been slightly affected by a major road construction project on Flamingo Road near the Silver Sevens.
In Nevada, the company’s net revenue was $55.3 million for the quarter compared with $60.3 million a year earlier. In addition to the Primm and Las Vegas properties, Affinity operates the Rail City Casino in Sparks.
Revenue and income generation was similar for the company’s Colorado and Midwest operations.
The Midwest group, which includes two properties in Missouri and one in Iowa, saw net revenue fall 4.4 percent to $30.4 million for the quarter with the decline attributed to reduced promotional allowances that were slightly offset by the company’s modified marketing program.
In Colorado, where the company operates three casinos in Blackhawk, net revenue declined to $8.9 million from $9.3 million a year ago.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta
