The New Jersey Casino Control Commission (CCC) yesterday published second quarter results for the Atlantic City casino industry. The Borgata led the field with gross operating profit of US$58.2 million, a 0.3% rise on the same period last year. Bally’s Atlantic City reported a smaller profit – US$54.5 million – but this was a 25.9% increase. Net revenue from the city’s casinos rose 4.8% to US$1.27 billion.
Net income for the industry, on the other hand, fell 53.1% to US$171.4 million from US$ 365.5 million for the six months to 30 June. The fall over the second quarter was nearly 75%. Gross operating profit over the last three months for the 12 casinos was up 8.5% at US$355.9 million compared to US$327.9 million in 2005. Three casinos show a decline in operating profit – Resorts, Showboat and Trump Plaza. Resorts Atlantic City was down the most with a 57.7% decrease.
The hotel occupancy rate was also up at the 12 properties in the second quarter, with an industry average of 93.1%. The Atlantic City Hilton occupancy rate over the three months was 98.8% whilst at Trump Plaza it was 77.2%. The Atlantic City Hilton also achieved the highest increase in gross operating profit at 91.2% to US$15.8 million.
The figures reported by the CCC are considered to be reasonable in the light of higher fuel prices and interest rates. Results have yet to show the impact of the 3-day closure of Atlantic City’s casinos in July. (E-08.18.06)
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