Station Casinos said Tuesday the company’s net revenues fell 2 percent in the first quarter as customers, feeling the effects of increased taxes and delays to federal tax refunds, gambled less.
The locals casino operator recorded a net loss of $142.1 million for the quarter that ended March 31, which was primarily because of the company’s $2.475 billion debt restructuring. A year ago, Station Casinos said its net income was $8.9 million.
Station Casinos said its net revenues for the three-month period were $311.8 million.
The company posted its eighth consecutive quarter of year-over-year growth in cash flow.
“Net revenues in the first quarter were impacted by a combination of the increase in Social Security payroll tax, federal tax refund delays and one less day in February this year versus last year,” said Marc Falcone, Station Casinos’ chief financial officer . “Results improved meaningfully in March.”
Station Casinos reports quarterly results because the company has publicly traded debt.
Station Casinos launched Ultimate Poker on April 30, which became the first real money online poker website in Nevada. Station Casinos owns 57 percent of the parent company of Ultimate Poker.
Falcone said the company wasn’t ready to discuss any revenues from the operation, which is only a few weeks old. The website is close to dealing its 1 millionth hand of poker and has already operated two tournaments.
“It’s too early to understand revenues and profitability of this start-up business at this point,” Falcone said.
He added that Station Casinos funded $10 million to its Fertitta Interactive subsidiary for the operation of Ultimate Poker in 2013. Falcone said the soft launch “exceeded expectations.”
“We are committed to expanding our presence in Nevada while, at the same time, expanding our reach to other states as online poker becomes legalized on a broader scale,” Falcone said.
Station Casinos said the construction of the $800 million Graton Resort & Casino near Santa Rosa, Calif., remains on budget, and the facility is scheduled to open in the fourth quarter.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.