New Jersey's Casino Control Commission has come out with a grim set of numbers regarding gross operating profitability in Atlantic City's casinos during 3Q08. And, as bad as these numbers sound, once the cost of operation is subtracted, a $121 million collective net profit in 3Q07 dissolves into a an aggregate loss of $78.5 million (a -$199 million swing, year/year).
If, to borrow a phrase from Chuck Monster, "flat" is the new "up," there's one clear winner in this bunch, a clutch of casinos that are doing about as well as could be hoped, a few that are cause for concern, and two that need to be rushed to Intensive Care. Without further ado …
1. Harrah's Resort Atlantic City: -2% ($52M profit)
2. Trump Taj Mahal Casino Resort: -13.6% ($35M)
3. Trump Plaza Hotel Casino: -15% ($17M)
4. Borgata Hotel Casino & Spa: -17% ($61M)
5. Bally's Atlantic City: -19% ($43.5M)
6. Caesars Atlantic City: -22% ($49M)
7. Showboat Hotel Casino: -35% ($24M)
8. Tropicana Casino & Resort: -43% ($22M)
9. Trump Marina Hotel Casino: -36% ($7.6M)
10. Resorts Atlantic City: -62% ($3M)
11. Atlantic City Hilton Casino Resort: -73% ($3M)
The argument could be made that Trump Plaza and the Taj were low on the food chain already and had less room to fall. But that could also be said of Trump Marina and Colony Capital's two bottom-tier properties, not to mention the ailing Trop. The fact that Trump is maintaining its margins relatively well (except at the discarded Marina) also supports CEO Mark Juliano's contention that he's operating as thriftily as possible already.
With Station Casinos losing money, Colony can't look elsewhere in its casino portfolio for cash with which to prop up the Hilton and Resorts. Will they still be around when Revel opens? For the sake of their employees, I hope so. But it's not looking good.
