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Fitzgeralds' Loss Narrows

LAS VEGAS -- The Fitzgeralds hotel-casino in downtown Las Vegas narrowed its operating loss to $300,000 in the second quarter compared to a loss of $700,000 in the same quarter a year ago. The property's cash flow also rose, though revenue fell during the quarter.

The property reported its financial results this week along with its Indiana-based parent company, Majestic Star Casino LLC.

Fitzgeralds in Las Vegas reported cash flow of $400,000 compared to negligible cash flow last year. Revenue fell 5.5 percent, to $11.9 million.

The average daily win per slot machine was $86 in the second quarter compared to $95 a year earlier. Per table game, the daily win was $891 compared to $776 a year ago. Hotel occupancy fell to 81.3 percent from 93.4 percent, while the average daily rate, $34, remained flat.

The war in Iraq and poor economic conditions hurt revenue across the company's Fitzgeralds properties, which include single casinos in Tunica, Miss., and Black Hawk, Colo., the company said. Competitive pressure in Tunica and poor weather in Colorado also contributed.

But cash flow improved due to continued cost controls.

Profit across the three Fitzgeralds casinos declined 16.3 percent, to $978,435. Cash flow rose 3.5 percent, to $7.1 million. Revenue declined 2.9 percent, to $43.2 million.

"We continue to believe that as economic conditions improve so will our revenues and overall operating results," Majestic Star Chief Executive Don Barden said.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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