Oct 23
2008
RENO, Nev. - Monarch Casino & Resort Inc., the owner of the Atlantis Casino Resort Spa in Reno, Nev., said Wednesday its net profit in the third quarter fell 50 percent as revenue sank and promotional giveaways crept higher.
Net profit fell to $4 million, or 25 cents per share, from $8 million, or 41 cents per share, in the year-ago quarter. Net revenue dropped 11 percent to $38.8 million from $43.6 million.
Analysts surveyed by Thomson Reuters expected earnings per share of 21 cents and revenue of $38.5 million.
Casino operating expenses grew 8.2 percent to $10 million, due largely to the giveaway of free food, drinks and other services to patrons.
Chief Executive John Farahi cited the weak economy in Northern Nevada for revenue shrinkage while profits were hurt by “aggressive marketing and discount programs initiated by our competitors.”
Shares of Monarch Casino slipped 10 cents to close at $6.70.
No Comments Yet »
Oct 02
2008
The gaming industry was long thought to be recession proof
Southeastern Connecticut is gearing up to deal with a huge economic dislocation as Foxwoods casino lays off 700 workers.
The gaming industry was long thought to be recession proof, but the latest downturn is beginning to take its toll. After Mohegan Sun’s decision to delay its expansion plans comes the news that Foxwoods will lay off about six percent of its workforce. The Eastern Connecticut Workforce Investment Board has dealt with many large scale layoffs in the region, helping to place or retrain affected workers. But the Board’s director John Beauregard says this one is daunting.
“Reabsorption will definitely be a challenge, especially with the economy the way it is right now. That number of 700, if indeed it does stay at that level, ranks among the largest that we’ve dealt with in a decade or so. I think we would have to go back to some of the layoffs we experienced during defense downsizing to hit those kinds of numbers.”
The Mashantucket Pequot tribe, the owners of Foxwoods, have said the layoffs will come across the board, affecting both hourly employees and management. The layoffs will be staggered over the next two weeks. It’s just four months since Foxwoods opened its new MGM Grand expansion, which resulted in 2 thousand new jobs.
No Comments Yet »
Recent Comments