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Aztar Reports Revenue Drop12 July 2001LAS VEGAS, Nevada –July 12, 2001 –As reported by the Las Vegas Review-Journal: “Volatile stock markets have hurt the consumer confidence of the 55-and-older crowd, cutting into the midweek business of Tropicana owner Aztar Corp., a top company official said Wednesday. ”The gyrating markets have reduced the value of a mix of retirement programs, with many 401(k) investors last year experiencing the first-ever yearly decline in the value of their plans. ”…Phoenix-based Aztar reported a 4 1/2 percent decline in revenue to $210.8 million but an 18 percent jump in earnings per share to 40 cents, with the company cutting promotional programs to eliminate marketing costs. ”The move helped Aztar's operating cash flow margin, which measures the ratio between cash flow and revenue, increase 1.5 percent for the quarter to 25 percent. For the quarter, Aztar reported record quarterly cash flow of $52.7 million, up from $52 million a year ago. ”But the jiggering of the company's marketing approach and a $500,000 increase in utility costs at the Strip's Tropicana, saw all five Aztar properties report revenue declines. ”The Tropicana Las Vegas saw second-quarter cash flow decrease $700,000 to $8 million and followed the lead of numerous local competitors by adding a $3-a-night room surcharge on July 1 to counter rising energy costs. ”…Aztar shares were up 99 cents Wednesday on the New York Stock Exchange to close at $12.70…” |