Consumers tightening their spending coupled with poor weather hit Isle of Capri Casino’s third quarter results widening the loss to US$2.2m.
Revenue for third quarter ending January 27 increased to $238.1m, up from $227.3m a year ago.
President and CEO Virginia McDowell said: “Similar to other operators in the regional gaming industry, our results were impacted by softness in consumer spending, including the effect of payroll and income tax modifications early in the calendar year. In addition, last winter was one of the mildest on record in the Midwest, while in contrast this winter we have had some measurable weather disruptions at key times, including New Year’s Eve weekend.”
Highlights included the opening of a new property in Cape Girardeau on October 30, 2012, two full months ahead of its original schedule. Mrs McDowell added: “The property’s appearance and experience has been extremely well received by customers, and our focus is now on the continuing ramp up in operational performance at the property. We continue to deliver on our strategy of improving our guest experience and enhancing our asset base. During the quarter, in addition to opening Cape Girardeau, we completed the rebranding of our Vicksburg facility to a Lady Luck and completed renovations to our main hotel tower in Lake Charles. We also began construction on Lady Luck Nemacolin and completed the sale of our Biloxi property on November 29, 2012. We are beginning to see the positive impact from the capital projects we have completed, and are confident our strategy to revitalize our asset base is working.
“We are also very excited to have entered into an agreement with Tower Entertainment, LLC in Philadelphia, to manage its proposed, $700m, luxury casino entertainment complex, The Provence, subject to the project being selected by the Pennsylvania Gaming Control Board. The proposed facility will be stunning and provides us the potential opportunity to enter into one of the preeminent US gaming markets,” she added.
Revenue increases at Black Hawk, 8.1 per cent to$28.9m, Pompano, $1.2m to $39.9m and Missouri 29.6% per cent to $59.2m were offset by decreases in Iowa, Lake Charles and Mississippi.