The Seneca Gaming Corp. posted a profit during the first quarter of the company’s 2010 fiscal year, despite a continued lag in slot machine and table game revenues.
In a statement filed with the U.S. Securities and Exchange Commission on Tuesday, the Seneca Nation’s gaming subsidiary reported an increase in income from operations of $23.7 million for the three-month period ending Dec. 31. According to the gaming corporation, the figure represents a profit increase of 22.7 percent when compared to the first quarter of 2009.
The profits were reported as gaming corporation operations, including Seneca Niagara Casino, continued to experience drops in gaming-related revenue. According to the SEC filing, gaming revenues were down 1.2 percent, to $135.4 million during the first quarter of 2010 when compared to the previous year. Gross slot machine revenues declined 1.1 percent to $123.5 million and net table game revenues dropped 5.8 percent to $14.3 million.
Gaming officials pointed to the reduction of consumer discretionary spending as a result of the ongoing economic recession as the primary factor for the decline in gaming revenues. They also noted that revenue drops were offset by cost saving and efficiency measures, including a $2.5 million reduction in payroll and related expenses, a $500,000 decrease in utilities, and a decline of $400,000 in food and beverage costs. The company also reported a decline of $1.3 million in head lease payments to the Nation and a $500,000 drop in exclusivity fees paid to the state as the result of lower slot revenue.
“One of our primary focuses over the past 18 months has been to look inward for opportunities to reduce costs and maximize operating efficiencies, but without sacrificing the quality of service and the gaming experience our patrons have come to expect,” said the gaming corporation’s Chief Operating Officer Catherine Walker in a release issued by the company on Tuesday. “This integral component of our strategy should continue to provide benefits to the Corporation even as economic conditions improve.”
Food and beverage revenues decreased 6.7 percent when comparing the first quarter 2010 to the first quarter 2009.
Kevin W. Seneca, chairman of the board, suggested the company is fairing well despite the condition of the gaming industry and global economic climate over the course of the recession.
“Through prudent fiscal management, improvement in our liquidity position, successful extension of our senior secured revolving loan agreement and fulfillment of strategic directives established by our Board of Directors and the Seneca Nation of Indians’ Tribal Council and executives, SGC has been successful in standing out from its peers,” Seneca said.
Local News
SENECA GAMING: Profits are up $23.7M
Profit up 22 percent despite dip in gaming revenue
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