Stratosphere’s parent company shows second-quarter increases
Key financial metrics inched upward for nearly every division and category in the second quarter for American Casino & Entertainment Properties, parent company of the Stratosphere.
The company, which also operates two Arizona Charlie’s properties in Las Vegas and the Aquarius in Laughlin, on Friday reported net income of $12.3 million on revenue of $105.1 million for the quarter that ended June 30. In the same quarter a year ago, income was at $7.4 million on revenue of $102.6 million.
Officials with the company attributed the increases to higher slot revenue, hotel occupancy and average daily room rates and higher average revenue per food customer. ACEP has reported year-over-year increases in net revenue in each of the last 10 quarters, and year-over-year increased cash flow in nine out of 10 quarters.
Stratosphere’s second quarter net revenue increased 3.1 percent in 2016 compared with last year with hotel revenue up 3.1 percent due to a 3.4 percent increase in room rates. Slot play drove casino revenue higher by 4.1 percent and food and beverage was up 6.1 percent, thanks to higher average spend per patron.
The hotel, casino and food and beverage results offset a 10.3 percent decline in tower revenue resulting from a 5.3 percent decrease in tower visitor volume and an 8.5 percent decline in average revenue per tower visitor, driven by weather-related downtime.
Net revenue was unchanged for Arizona Charlie’s with a 0.1 percent decline in casino revenue resulting from decreased race, sportsbook and bingo revenue offsetting higher slot play.
Net revenue increased 3.1 percent over last year at the Aquarius with hotel revenue up 8.5 percent due to boosts in occupancy and room rates. Casino revenue was up 1.7 percent and food and beverage, 8 percent at the Laughlin property.
Ned Martin, chief financial officer of the company, said in Friday’s conference call that the company has filed with the Securities and Exchange Commission to deregister as a publicly traded company, a move officials already have made with state gaming regulators.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta.
