The Stratosphere has reported a flat second quarter of business. The owner of the stratosphere released a statement in Las Vegas, on Thursday, stating that they had had a completely flat second quarter of business. The property, owned by the American Casino & Entertain Properties LLC, which owns two local casinos in the area as well, reported losses of $2.8 million during the second quarter of June, which ended for the company on June 30. That was the same amount of losses that the company took in the second quarter of 2001, resulting in the flat analysis of the situation. Revenue was up by a total of $100,000 to a total of $87.7 million for the company. The company also saw some key performance metrics fall as well.
These metrics included the EBITDA, a performance metric that is used to measure the effectiveness of casinos. This number fell from $18.2 million to a total of $16.1 million. This is a result of an increase in expenses. The EBITDA takes earnings before interest, taxes, depreciation, and other factors into account when it is ranking the casinos. The hotel also saw their occupancy stayed flat at a 91.7% occupancy mark. This was the same number that the company saw in the second quarter of 2001, as well as in 2002, which goes to show the kind of longevity that the Stratosphere has. They also saw revenue from their tower rides, and attractions while a total of 5.1% when both quarters are compared.
The company cited a weakness in consumer sentiment, followed by a decrease in spending, as one of the main reasons why the company has seen dips over the course of recent months.
Despite these poor showings, the casino did manage to boost their revenue and number of different areas. One area, saw boost of 0.5% revenue to a total of $40.1 million in net revenue, as well as a 4.1% increase in hotel revenue. However, the casino still watches on as its gaming profit and revenue fall sharply.