NEWARK, N.J. (AFX) - Net income for Atlantic City's 12 casinos fell nearly 75 percent in the second quarter compared to a year ago, largely due to one-time effects, as revenues rose nearly 5 percent, state gambling regulators said Thursday.
Gross operating profit was up 8.5 percent for the quarter. That measure, which excludes interest, taxes, depreciation and other charges, is considered a better comparison between casino properties. Much of the change in net income was due to one-time items, particularly the emergence of the three Trump casinos from bankruptcy last year.
The 12 casinos had gross operating profit of $355.9 million for the three months ending June 30, compared to $327.9 million for the same period in 2005, according to figures released by the state Casino Control Commission. Revenue rose 4.8 percent to $1.27 billion for the quarter.
The results do not reflect the unprecedented three-day casino shutdown in July caused by a state budget impasse. 'Considering all the fears about a consumer slowdown and rising interest rates ... I thought the numbers looked pretty good for the market,' said analyst Eric Hausler of Bear Stearns.
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