Cosmopolitan reports third quarter net profit of $4.7 million
The Cosmopolitan of Las Vegas on Friday reported its second straight quarterly profit, reversing a net loss from a year ago.
The Strip resort, which was purchased late last year by an affiliate of the New York-based Blackstone Group for $1.73 billion, said its net income for the quarter that ended Sept. 30 was $4.7 million, compared to a net loss of $15.3 million in the 2014 third quarter.
In the second quarter, the Cosmopolitan reported a net income of $15.3 million, marking the first time since the nearly 3,000-room hotel-casino opened in 2010 that it reported a quarterly profit.
The Cosmopolitan has publicly held debt of $867 million and reports earnings quarterly, but doesn't provide much detail other than what's in its filing with the Securities and Exchange Commission.
In the quarter, the Cosmopolitan's net revenue in the quarter declined 5 percent from a year ago to $179.8 million. Three of the property's four areas — entertainment, restaurants and hotel — all had single digit revenue decline. Casino revenue increased by less than $300,000 to $55.8 million.
In July, the Cosmopolitan's Bamboo Pool area was damaged by a fire and the company "wrote-off" $300,000 of equipment that was damaged or destroyed. The Cosmopolitan's operators filed an insurance claim to recover the replacement value of the destroyed property and additional expenses that were incurred as well as business interruption.
During the quarter, the Cosmopolitan received $2.9 million from the insurance claim, resulting in a gain of $2.6 million.
"Additional proceeds from our insurance companies may be received in subsequent periods as we continue finalizing the submission of our claim," the Cosmopolitan wrote in its SEC filing. "In addition, we may incur additional costs that may not be reimbursed by our insurance companies."
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Find him on Twitter: @howardstutz
