Tropicana Entertainment posts first quarter loss of $4.8 million

Tropicana Entertainment Inc., the gaming company controlled by investor Carl Icahn, on Tuesday reported a first-quarter loss as its three casinos in Nevada continue to struggle to recover from the recession.

The Las Vegas-based company posted a loss of $4.8 million on net revenues of $155.2 million for the quarter ended March 31. That's compared with a loss of $1.4 million on net revenue of $156.8 million in the first quarter of 2011.

In Nevada, the company owns the Tropicana Laughlin and the River Palms properties in Laughlin, and the MontBleu casino at Lake Tahoe. The gaming company attributed its overall first quarter performance to "uncertain economic conditions."

The Tropicana of Las Vegas is owned by a separate group of investors.

Tropicana Entertainment said in Tuesday's quarterly report that its Nevada hotel-casinos generated $32.5 million in net revenues in the first quarter, down from $33.2 million a year earlier. Operating income increased to $5.6 million, up from $3.2 million in the first quarter of 2011.

The decrease in net revenues was primarily driven by an 8.8 percent decline in slot volumes and an 11.6 percent decline in table volumes, the company said.

In Nevada, net revenues and volume continued to be "negatively impacted by the deterioration of casino revenue in the Laughlin market resulting from the continuing poor economic conditions and reduced consumer discretionary spending," Tropicana Entertainment said.

Overall, net revenues at the company's two Laughlin properties declined by $1.1 million in the first quarter, compared with the same period last year. The average daily room rates in Nevada was $39 for the first quarter, up from $39 from the first quarter of 2011.

The occupancy declined significantly year-over-year to 51 percent from 67 percent.

"The decrease in the occupancy rate is attributable to the increased room rates in Laughlin, which is a result of the shift in strategy to attract more profitable customers, the company said.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.