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Atlantic City Results Up

20 August 2003

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: " The casino industry fought through a weak economy, the diversion of war and bad April weather to post gains in second-quarter profits.

"Gross operating profit, or cash flow, at the 11 casinos here increased 4.3 percent, to $329 million, the Casino Control Commission reported Tuesday.

"The increase was the industry's first since the third quarter of last year.

"Net revenue increased only 1.2 percent, to $1.1 billion, but casinos kept their expenses the same as a year earlier.

"…At the bottom line, the industry's net income rose 6.5 percent, to $60.7 million. The figure, however, means little for most casinos because it includes nonoperating costs, such as management fees and debt payments, that can be imposed by their parent companies. Net income is more meaningful for the city's two independent casinos, Resorts and Sands.

"…Due to a rough first quarter - in which snowstorms, war and a weak economy hurt business - the industry's cash flow through the first half of the year was down 3.3 percent, to $566.6 million.

"… Three casinos reported cash-flow declines. Resorts is undergoing major expansion and has fewer hotel rooms and slot machines than it did a year ago. Trump officials last month blamed the war, bad weather and higher taxes and utility costs for declines at Trump Marina and Trump Taj Mahal.

"The casino commission did not require Borgata to file a second-quarter report even though the casino did nearly $200,000 in gambling business during two test days in late June…"

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