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US – Profitable week at last for Revel

By - 16 July 2013

Fifteen months into its history, Revel Casino-Hotel has recorded its first profitable week with the first week of July, 2013, taking the somewhat dubious accolade. 

In addition, as it continues to reframe and reshape its marketing strategy, the property announced the launch of a comprehensive cost-rationalization initiative, starting with the layoff of 75 salaried professionals – representing two per cent of the current workforce – in order to improve the property’s long-term performance.

Jeff Hartmann, Interim Chief Executive Officer, said: “During the week ending July 7, 2013, we recorded the first profitable week in the property’s history. During the July 4th week of 2012, Revel was materially unprofitable. This year, our gaming revenues were up substantially and our free slot play as a percentage of revenue fell significantly. Now, as we experience revenue growth, we must simultaneously reduce our cost structure that contributed to the $150m loss for the 12 months ending March 31, 2013. As we strive to operate Revel as a sustainable business year round, it is clear that we have to make some changes. We are disappointed that we must release professionals who have contributed to the opening of Revel, and we wish them success in their future endeavours.”

Scott Kreeger, Interim Chief Operating Officer, added: “The Revel organisational structure was established to support a level of revenues that have not been achieved over the 15 months of operation. We hope that  staffing level changes, while unfortunate, will start us on the path towards profitability and provide long-term stability for the more than 3,500 people who work for Revel. Given that our changes are focused on reorienting our staffing model given the level of business we are expected to achieve over the next 12-18 months, we expect no impact on the customer experience. In fact, as we get senior managers closer to operations, we would expect service to improve.”

According to the New Jersey Division of Gaming Enforcement’s June 2013 Casino win results, Revel Casino-Hotel’s slot market share increased from 3.7 per cent to 4.3 per cent.

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