CasinoCityTimes.com

Home
Gaming Strategy
Featured Stories
News
Newsletter
Legal News Financial News Casino Opening and Remodeling News Gaming Industry Executives Search News Subscribe
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
SEARCH NEWS:
Search Our Archive of Gaming Articles 
 

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…"

< Gaming News