Stratosphere parent grows revenue, reverses net loss
The operator of the Stratosphere and the two Arizona Charlie’s properties reversed a net loss and grew revenue in the fourth quarter.
American Casino & Entertainment Properties said Thursday its net income of $200,000 for the quarter that ended Dec. 31 reversed a net loss of $2.8 million for the same period a year ago. The company said the profit would have been higher if not for a non-cash charge of $492,000.
Overall revenue in the fourth quarter increased 8.3 percent to $84.8 million, due largely to higher customer spending in the casino, hotel and food and beverage divisions.
American Casino is privately held but has public debt.
Net revenue at the Stratosphere increased 10.4 percent in the quarter, revenue from the Arizona Charlie’s properties were up 2.7 percent and the company’s Aquarius resort in Laughlin saw a 10.3 percent increase in net revenue in the quarter.
For all of 2014, American Casino grew net revenue 4 percent to $351.1 million and reported net income of $7 million, reversing a net of loss of $15.1 million in 2013.
According to Fantini Gaming Research, American Casino CEO Frank Riolo told analysts the company would be interested in taking on casino management contracts.
In discussing Las Vegas, Riolo said the Stratosphere hasn’t seen advanced hotel booking trends for May the resort expected with the nearby Rock In Rio event scheduled for the middle of the month.
However, he said the planned Floyd Mayweather-Manny Pacquaio fight on May 2 at the MGM Grand Garden is “overshadowing a lot of things.”
Riolo said he predicted the company’s Strip resort to have a strong month in May.
American Casino is improving amenities at its properties.
A new pool area is being designed at the Aquarius and restaurants are being overhauled at both Arizona Charlie’s properties. A pool at the Stratosphere is being redone in time for Rock In Rio.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find him on Twitter: @howardstutz.
