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Promo costs hurt Borgata

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "Even the mighty Borgata Hotel Casino & Spa isn't immune to Atlantic City's marketing wars.

"Borgata's first-quarter earnings were squeezed by higher promotional expenses in a fierce battle with competitors for market share, parent company Boyd Gaming Corp. reported Thursday.

"Borgata led the industry in the first quarter with $187.3 million in gaming revenue, up 7.5 percent. However, its gross operating profit tumbled 7.2 percent to $60.6 million for the quarter. Also known as cash flow, gross operating profit is a closely watched measure of profitability in the casino industry.

"Borgata's bottom line was hurt by a 17.5 percent jump in promotional expenses, which rose to $50.3 million for the quarter.

"Boyd executives blamed the higher expenses on Atlantic City's marketing battle…"

copyrighted material written for and appeared exclusively in The Press of Atlantic City

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