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Atlantic City Casinos' 2000 Revenue Set Record

6 April 2001

ATLANTIC CITY, New Jersey –– As reported by the Atlantic City Press Plus: "…The dozen casinos reported record gross operating profit of $1.1 billion on record net revenue of $4.6 billion, according to figures released Thursday afternoon by the state Casino Control Commission.

"While net revenue has increased every year in the industry's 23-year existence, it took the casinos five years to surpass their high-water mark of $999.8 million in operating profit.

"The net revenue marked a 3 percent increase over 1999, and the operating profit, or cash flow, was 10.4 percent ahead of the previous year.

"The record numbers came despite a sluggish fourth quarter, in which the souring economy and bad weather caused a 1.2 percent decline in net revenue, to $1.1 billion, and limited cash flow to a 2.4 percent increase, to $189.2 million.

"…The industry's total operating expenses rose only 0.9 percent, to $3.5 billion, or about one-fourth of the inflation rate. Casinos restrained themselves on cash giveaways, increasing promotional spending just 1.3 percent, to $644.3 million.

"…The industry failed to surpass its 1995 performance in only one key category: operating margin. Casinos converted 23.6 percent of their net revenue into cash flow, compared to 24.5 percent five years ago.

"At the bottom line casinos reported $100 million in net income compared to a net loss of $127.2 million the previous year

"…Nine of the casinos reported increases in net revenue, cash flow and operating margin; Showboat, Trump Marina and Trump Plaza did not.

"Resorts Atlantic City more than doubled its operating profit after a rough 1999, but would need to again double its result to approach its 1995 result…"

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