Profit up, revenue down for LV resort

The company earned $2.1 million in the quarter, up from $1.3 million earned in the same quarter last year.

Stratosphere generated revenues of $33.9 million in the quarter, down from $34.2 million in the year-ago quarter.

Stratosphere emerged from bankruptcy court protection within the last year, and is now owned by billionaire Carl Icahn. Earnings per share were $1.04 in the quarter.

No comparison was offered to the year-ago quarter, because the outstanding stock at that time has been cancelled.

Stratosphere attributed the lower revenues to increased competition on the Las Vegas Strip over the past year.

Two new mega-resorts, the Bellagio and Mandalay Bay hotel-casinos, were open before the end of the quarter.

The new resorts reduced Stratosphere casino revenues by $1.3 million. But hotel revenues were up in the quarter by $6.6 million due to a higher average daily room rate. Stratosphere tower visitation revenues were also down in the quarter.

Casino operating costs fell $7.9 million in the quarter due to reductions in the cost of providing complimentary room, food and beverage services.

However, the reduced comps boosted hotel operating costs by $3 million. Hotel comps are billed to the casino. Other costs fell $3.3 million due to reduced showroom entertainer and payroll costs.

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