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Chris Sieroty

The Cosmopolitan posts smaller first-quarter loss

11 May 2012

The Cosmopolitan of Las Vegas has reported a smaller first-quarter loss, but nongaming revenue at the luxury Strip resort continues to outpace gaming revenue.

The Cosmopolitan lost $23.4 million in the first quarter of 2012, compared with $56.8 million last year, when the resort was in its first quarter of operations. Net revenues increased from $105 million to $143.1 million.

EBITDA, earnings before interest, taxes, depreciation and amortization, were $22.2 million, compared with a loss of $8.3 million in the first quarter of 2011.

The $3.9 billion resort, which opened on Dec. 15, 2010, has struggled to attract gamblers to its casino on the Strip between CityCenter and Bellagio. The Cosmopolitan posted $30.8 million in casino revenue, compared with $31 million in the first quarter of 2011.

The Cosmopolitan said its earnings were hurt by a 9.7 percent hold, or win, which was below its expected range of 12 percent to 15 percent.

In terms of nongaming revenue, the resort took in $71.8 million from food and beverage in the first quarter, compared with $57.5 million last year. Entertainment, retail and other generated $6.8 million, compared with $4.4 million.