Stratosphere’s owner sees revenue improve but still posts loss

First quarter net revenue of us$ 87.1 million was up from us$ 86.4 million in the year-ago quarter. The net loss of us$ 1.4 million compared to us$ 6.2 million lost in the 2011 quarter. The results improved in part thanks to a decline in expenses from us$ 81 million to us$ 77.4 million.

EBITDA - earnings before interest, taxes, depreciation and amortization - rose from us$ 16.4 million to us$ 18.4 million. The company said net revenue at the Stratosphere increased 1.6 percent to us$ 38.4 million, thanks to a 4.6 percent increase in casino revenue. Hotel occupancy at the 2,427-room property fell from 84.5 percent to 82 percent. Room rates on average edged up from us$ 50.50 to us$ 51.80. The hotel was affected by a more favorable convention calendar in the 2011 quarter, American Casino said.

Net revenue at the two Arizona Charlie’s properties fell 3.1 percent to a combined us$ 24.7 million. They’ve been experiencing intense competition in the Las Vegas locals market, which has been hit hard by foreclosures and high unemployment.

The Aquarius posted a 3.9 percent increase in net revenue to us$ 24 million, thanks to higher play volumes on its slot machines, its table games winning more from gamblers on a percentage basis and its 1,907-room hotel booking more rooms. Occupancy at the Aquarius improved from 44.6 percent to 49.3 percent while the average daily room rate grew 30 cents to us$ 44.43.

American Casino & Entertainment is hoping for improvements in casino revenue at all its properties after introducing in March what it called its new and enhanced “ace PLAY” rewards program providing benefits in the form of cash back, discounted slot play or comps.