Casino news source: Lockport Union-Sun & Journal - http://www.lockportjournal.com/l
NIAGARA FALLS: Casino revenue a record
First quarter earnings increase 41 percent to $103.3 million
By Denise Jewell
Niagara Gazette
Increased gambling space and hotel business brought in record revenue at the Seneca Niagara Casino and Hotel at the end of 2006.
The Seneca Gaming Corp. released an earnings report Tuesday that showed slot machine revenue shot up in the last three months of 2006, the company’s first quarter, compared to the same period in 2005.
Seneca Gaming attributed the increased revenue at its Niagara Falls site to 35,000 square feet of space for table games and slots machines added when it opened a new hotel. The hotel’s operations also contributed to the increased revenue.
Net revenues at the Seneca Niagara Casino and Hotel increased 41 percent to $103.3 million during the last three months of 2006 compared to the same quarter the previous year. The largest bulk of the revenue came from slot machines, which brought in $80.6 million during the last three months of 2006 compared to $58.5 million at the end of 2005.
The news came as the Seneca organization is restructuring itself after the abrupt resignation last week of its two top executives, former CEO John Pasqualoni and former Chief Operating Officer Joseph D’Amato.
Brian Hansberry, who was named interim president and CEO last week, said the operating results at the Niagara Falls casino “exceeded our expectations.” He said the net revenues at the site “were records for this property.”
Hansberry and Seneca Gaming Chairman Barry Snyder Sr. tried to calm investor concerns during a conference call Friday that the executive transition could affect the organization.
“We have a great management team,” Snyder told investors during the call. “We’ll just keep moving on and we’ll keep generating the dollars as we’re supposed to do.”
The increased revenues at Seneca Gaming’s Niagara Falls site outpaced its Allegany location, where revenue remained relatively flat during the last three months of the year. Hansberry attributed the flat Allegany earnings to “ongoing construction disruption” as the site opened a new permanent gaming floor.
The corporation also reported significant increases in operating expenses in the following areas: labor and benefits at the hotel and other amenities, the slots revenue payment made to the state, advertising costs and pre-opening expenses related to development and construction of a Seneca Buffalo Creek Casino.
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