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Gaming Guru

Chris Jones
 

Happy Anniversary, Hard Rock: Record Revenue for Quarter

28 July 2005

The parent company of Las Vegas' Hard Rock Hotel marked the 10th anniversary of its flagship property with a financial flourish, its Las Vegas-based management team said Wednesday.

During the three-month period ended June 30, Hard Rock Hotel reported record quarterly revenue of nearly $46.3 million, up 12.3 percent from a year ago's $41.2 million.

Operating cash flow, a casino performance indicator defined as earnings before interest, taxes, depreciation and amortization, increased by 10.7 percent to $12.3 million. Quarterly net income surged from $650,000 in 2004 to nearly $4 million this year.

Despite a $337,000 decrease in casino revenue, the Hard Rock's balance sheet was bolstered by higher hotel room rates and a surge in food and beverage sales.

Occupancy rates in the 650-room hotel held steady in the 97 percent range, but second-quarter guests on average paid $176 per night, up from the previous year's $157 average nightly rate. As a result, quarterly hotel revenue climbed to nearly $10.4 million from $9.4 million a year ago.

Food and beverage sales surged from $13.7 million a year ago to $18.4 million this year, a gain Chief Financial Officer Jim Bowen on Wednesday credited to the nightclub Body English, a space that was closed for renovations during two months of last year's second quarter, and to increased banquet sales.

In a statement, Hard Rock Chairman and Chief Executive Officer Peter Morton credited the strong performance in part to interest in the venue's 10th anniversary celebration. Over the final weekend in April, the property's entertainment lineup included big-name musical acts Bon Jovi, Coldplay and Nine Inch Nails, in addition to several parties and dinners attended by celebrity guests.

Hard Rock executives will further discuss the company's second quarter during a conference call at 11:30 a.m. today.

Happy Anniversary, Hard Rock: Record Revenue for Quarter is republished from Online.CasinoCity.com.