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12.02.2008 11:27 am
Isle of Capri loss narrows in Q2, but revenue falls
Tim Logan
St. Louis Post-Dispatch

Isle of Capri Casinos said its loss narrowed in the second quarter, but revenue fell and it’s still being buffeted by the weak economy and hurricanes on the Gulf Coast.

The Creve Coeur-based gaming company Tuesday morning reported revenues of $254.1 million in the three months ending Oct. 26, down 9 percent from the same period last year. But its loss narrowed, too, to $13.5 million from $24.6 million a year ago. On a per-share basis, that loss shrank to $0.43 from $0.80.

A number of casino companies have suffered in the downturn that’s gripped consumers in the second half of this year, but Isle chief executive James Perry said his company is holding up OK.

“I believe that our company has done an effective job of improving our operations while coping with the first overall declining gaming market that I have experienced in my 30 year career,” he said in a press release. “We are doing everything prudently possible to partially compensate for declining revenues.”

The company blamed Hurricanes Gustav and Ike, which forced the closing of casinos in Lake Charles, La., and Biloxi and Natchez, Miss., for $3.5 million in lost revenue, and said closing a hotel in Lula, Miss., for renovations has had an impact on its bottom line.It also wrote off $6.5 million in charges for abandoned development projects, said it is suspending expansion plans in Biloxi and will not take on any new capital projects at the moment. It said casinos in Iowa and Missouri “have held up relatively well.”

Analysts had expected stronger results in the quarter, and Isle’s stock was down 10 cents to $2.63 a share in early trading Tuesday.


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