Thursday, Oct. 17, 1996 | 11:59 a.m.
Mirage Resorts Inc. and Anchor Gaming reported higher earnings for the quarter that ended Sept. 30, while Aztar Corp., Harrah's and Rio Hotel & Casino Inc. results were impacted by construction disruptions.
Mirage said third-quarter net income rose to $48.7 million, or 25 cents a share, from $45.2 million, or 23 cents a share, in the 1995 period. Revenue increased to $370.8 million from $366.7 million.
The company said The Mirage's non-casino revenues climbed 9 percent, but that gaming performance was flat due to a decrease in baccarat play. Table-game win companywide slipped to 19.2 percent in the 1996 third quarter from 20.3 percent in the 1995 period.
Revenues and cash flow increased at both the Golden Nugget and Treasure Island, while the company's Laughlin property was affected by a weak market. Mirage said it received $7.2 million in pre-tax income from its 50 percent-owned Monte Carlo resort, which opened this year on the Las Vegas Strip.
Companywide occupancy rates climbed to 99.2 percent from 98.8 percent in the year-earlier quarter.
Anchor Gaming said net income jumped 64 percent in the Sept. 30 quarter to $8.2 million, or 60 cents a share, from $5 million, or 43 cents a share, in the year-earlier period.
That marks the 17th straight quarterly increase for the company that operates two Colorado casinos, a slot route in Nevada and offers proprietary games such as Wheel of Gold.
Anchor said it had 1,131 Wheel of Gold machines in casinos as of Sept. 30 and proposals to place 480 more, the bulk of them in 40 gaming properties that don't currently offer the game.
Rio reported relatively flat results, with net income of $4.3 million, or 20 cents a share, compared with $4.9 million, or 23 cents a share, in the 1995 quarter. Revenue rose 7 percent, to $53.2 million from $49.8 million.
The company said expansion projects caused some disruption in the casino, including temporary closure of some gaming tables and 400 slot machines. But Chairman Anthony Marnell II said Rio will open half of its 1,028 new suites by Jan. 1 and the remainder during the first quarter of 1997.
Aztar said construction disruptions and increased competition in Atlantic City led to a drop in net income to $47,000 from $4.6 million, or 11 cents a share, in the 1995 quarter. Revenue rose to $204.3 million from $154.9 million.
Casino revenue rose to $173.2 million for the latest quarter, up from $127.4 million in the 1995 period, Aztar said.
Harrah's Entertainment Inc. had a decrease in income on flat revenues. Income was $42.4 million (41 cents per share), down 17.5 percent from the $51.3 million (50 cents per share) reported a year ago. Revenues were $429.2 million, a 0.8 percent increase over the $425.8 million reported in third quarter 1995.
Harrah's President Philip Satre said the 1996 third-quarter net included a 2-cent-per-share charge related to reorganization of the New Orleans project, while the 1995 quarter's net include a 7-cent-a-share gain from the sale of equity in a New Zealand project.
Third-quarter operating profit fell 9.4 percent to $100.2 million from $110.6 million in the year-earlier period due to increased competition in Atlantic City and the riverboat casinos market, Satre said.
Operating income in Las Vegas also fell due to construction disruptions. Satre said the competitive pressures and construction disruptions should continue for "at least the next six to nine months," but that Harrah's is planning product improvements and cost-cutting measures to improve margins.
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