The Riviera has Reported a Smaller Operating Loss than Originally Expected
The Riviera as reported a smaller operating loss and was originally expected by many experts throughout the industry. The owner of the Riviera Hotel and Casino, located on the Las Vegas strip, reported a smaller quarterly operating loss on Monday, than was expected. Business overall was flat throughout the second quarter, which is something that many people were not expecting. Many experts in the industry had predicted that the company was going to be reporting a much bigger loss than was originally reported.
The Riviera Holdings Corp said that the net revenue for the company at a 2000+ room property, with a total of $21 million, down from $21.6 million in the same quarter a year ago. For the quarter, which actually ended on June 30, the operating loss was a total of $4 million in total. This was down from the $5.5 million total loss during the second quarter of 2011. The loss was smaller because the costs were reduced by the company, according to the financial report.
Also, the company was able to sell a $22 million Black Hawk property, that had been on the market for quite some time. The reported quarterly net income was $11.8 million or $1.31 per share. Riviera holdings so that the casino revenue during the quarter fell a total of $600,000, or what amounted to 6.2% overall. Table game activity increase for the company, but these increases were not seen across the board. The increase in table game action was attributed to the targeting of gamblers favoring Asian games, coming over for large events, such as the Manny Pacquiao fight.
Although the losses for the company were smaller than expected, they are not expected to continue this trend. Much of their revenue came from the sale of their property, and their revenue is expected to continue to fall during the third quarter of this year, when compared to 2011. It will be interesting to see if the company continues to look at new opportunities to increase their overall revenue.
This is a good sign for a company that has been in jeapardy for a long time. They have been working hard to cut their expenses while raising their profits. As a company, they have been able to make a few changes in their spending habits that have put them in an excellen tposition moving forward. If they continue to cut expenses, there are profitable times on the horizon. As these companies look to cut their expenses without sacrificing the customer experience that casinos ahve been known for. There are many things that need to be taken into consideration when you are looking to cut expenses as a casino, and one of the ways that the Riviera has done so is by targetting specific nights in an effort to increase their revenues. By targetting fight nights, they have been able to target specific demographics and individuals so that they can focus on the services that they are going to find the most interesting.