[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Supplier News

US – Iowa sale boosts Isle of Capri’s profit

By - 3 March 2014

Local casino operator Isle of Capri Casino returned to profit in the third quarter with a net income of US$10.7m in the quarter ended January 26, compared to a loss of $2.2m a year earlier.

Whilst net revenues fell 1.7 per cent to $224.2m in the third quarter, Isle of Capri, which owns and operates 15 casinos in seven states, said profit was boosted by its sale of a casino in Davenport, Iowa.

GGR in Missouri, for casinos located in Boonville, Cape Girardeau, Caruthersville and Kansas City, dropped 10 per cent in the third quarter to $53m, with smaller declines in other states. This was offset by strong revenue in Florida and from a new property in Pennsylvania.

Virginia McDowell, President and CEO, said: “We continue to improve the efficiency of our operations despite the ongoing impact of sluggish consumer spending and the severe winter weather conditions we experienced during the quarter.  We increased Adjusted EBITDA at four of our properties and improved Adjusted EBITDA margins at seven of our properties, leading to overall margin growth across the portfolio of properties open for more than one year.”

“The impacts of the weather and continuing revenue pressure, particularly at the lower end of our customer database, were at least partially offset by our ongoing and aggressive efforts to control costs and right-size our operating structure to our business volumes.,” she added. “The success of our profit improvement initiatives led directly to the improvement in same store Adjusted EBITDA margins.  We estimate these initiatives contributed approximately $2m to Adjusted EBITDA during the quarter. We continue to believe that the profit improvement initiatives will result in annual savings of $10m, when fully implemented.

“A few weeks ago we completed the sale of our property in Davenport and received approximately $50 million in net proceeds. We have initially used the proceeds to reduce borrowings under our senior credit facility.

“Furthermore, we completed the suitability hearing with our partner Tower Entertainment before the Pennsylvania Gaming Control Board in January. We are hopeful that The Provence, a unique proposal for a casino-anchored urban entertainment complex in Philadelphia, will be chosen by the Board for the remaining gaming license in Pennsylvania.”

Share via
Copy link