Lumiere posts small loss in Q1

The new Lumiere Place casino complex downtown posted a small loss in its first full quarter of operation, owner Pinnacle Entertainment reported this morning.

Thanks largely to marketing and staffing expenses associated with its opening, the property lost $760,000, on $47.2 million in revenue. Those figures account only for operating costs - not interest, income taxes or development costs - and include both the Lumiere Place and President riverboat casinos, and the new Four Seasons and Hotel Lumiere hotels at the $507 million Laclede’s Landing complex.

In its press release, Pinnacle said it over-staffed during the opening, to compensate for staff inexperience, and marketed broadly to build name recognition. Both those costs should diminish over time through staff attrition and more targeted marketing. And while the casinos were open the entire quarter, the two hotels did not open until midway through.

Also, according to figures filed with the Missouri Gaming Commission, revenue at the President fell sharply during the period, due to both high river levels that flooded some of its parking in March and increased competition from both Lumiere and the Casino Queen.

Work continues on Pinnacle’s new River City Casino in south St. Louis County. The company said it has built more than one-third of the 80-foot-deep pilings it needs to support the building, and expects to complete the foundation in September. It is seeking a general contractor to for the remainder of construction and still expects to open next year.

As a whole, Las Vegas-based Pinnacle reported revenues of $257 million in its first quarter, up 10.5 percent from the same period last year. Net income was $5.1 million, up 73 percent from last year. And earnings per share climbed to $.08 from $.05. More than 18 percent of its revenue came from Lumiere Place.