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Best of Chris Sieroty

Gaming Guru

Chris Sieroty
 

Riviera Holdings posts smaller quarterly loss

21 August 2012

LAS VEGAS -- The owner of the Riviera on the Strip posted a smaller quarterly loss on Tuesday as the company continued to cut costs amid a flat business environment.

Riviera Holdings Corporation reported a second-quarter loss of $4 million, compared with a loss of $5.5 million in the second quarter of 2011. The loss was smaller because of cost reductions, the company said in its earnings report.

Revenue fell 0.2 percent to $21 million from $21.5 million a year earlier.

"We believe that a number of factors are affecting consumer sentiment and behavior, including the continued economic slowdown," the company said. "We believe that consumers ... will continue to save more and spend less on discretionary items such as vacations and gaming. Thus, we believe that the outlook for the gaming and hospitality industries remains highly uncertain."

Riviera Holdings said casino revenue for the quarter was $9.5 million, a 6.2 percent decline from $10.2 million in the second quarter of 2011 as an increase in table games was offset by a decline in slot machine business. The increase in table games was attributed to heavy volume at games targeting gamblers favoring baccarat and pai gow.

Coin-in volume for the Riviera's slot machines totaled $105.4 million in the second quarter, compared with $111.7 million in the previous year.

Occupancy at the Riviera was 81.3 percent, down from 82.7 percent. However, room revenue was 0.4 percent higher to $9.3 million, primarily to an increase in-group and wholesale reservations.

Based on the adverse conditions, Riviera Holdings expects to "experience lower-than-historical hotel occupancy, room rates and casino volumes."