The Isle of Capri, Inc., owner of Isle of Capri Casino-Bettendorf and Rhythm City Casino-Davenport, lost $1 million - 3 cents per share - in the gambling firm's second quarter ended October 24.
The loss compares to earnings of $1.5 million, 5 cents per share, for the same period in 2009 when the company recorded a large $6 million income tax benefit.
Revenues at the Isle's casino, hotel and racetrack properties remain flat totaling $246.7 million for the second quarter, compared to $246.1 million for the same three-month period in 2009.
Net revenues at the Bettendorf casino fell to $20.3 million for the second quarter, compared to $20.5 million for the same period a year earlier. Revenues at the Davenport casino fell nearly $800,000 to $11.1 million compared to the second quarter of 2009. The city of Davenport recently gave the greenlight to a Chicago-based developer to begin negotiations with the Isle of Capri about taking over the gambling operation there.
Overall, net revenues for the Isle's gambling operations in Iowa fell from $60.1 million in the second quarter of 2009 to $59 million in the most recent quarter. In addition to Bettendorf and Davenport, the Isle has casinos in Waterloo and Marquette, Iowa.
Revenues at the Isle's Colorado operation, Black Hawk, fell nearly $5 million from a year ago. Offsetting the revenues declines in Iowa and Colorado was a more than $7 million gain in revenue from the newly acquired gambling operation in Vicksburg, Mississippi.
In a news release issued today (12/7), Moody's rating service downgraded the Isle of Capri credit rating based on its current debt level and the continuing effect the depressed economy is having on consumer spending on gambling.
CLICK HERE to view the Isle's second quarter financials.
CLICK HERE for Moody's downgrade article in Wall Street Journal.
