New competition may affect nightlife segment
Nevada Property 1 LLC, parent company of the Cosmopolitan of Las Vegas on the Strip, has reported a $25.5 million net loss on the property for the fourth quarter of 2013.
The number actually is an improvement. The Cosmopolitan lost $30 million during the same three-month period in 2012. And net revenues were on the rise too, reaching $151.7 million for the fourth quarter, reported the Las Vegas Review-Journal. That’s up more than $10 million, or about 7.6 percent, over the $141 million reported for the fourth quarter of 2012.
For all of 2013, the Cosmopolitan reported a loss of $94.8 million on net revenues of $652.5 million. That’s also an improvement over 2012, when the resort saw a $106.6 million net loss on net revenues of $595.2 million.
Casino revenues increased more than $31 million in 2013, up from $124.2 million to $155.5 million last year, about a 25 percent increase. Hotel revenues also increased from $240 million in 2012 to $267.6 million last year, according to the earnings report. Food and beverage revenues jumped too, from $306.2 million in 2012 to $313.8 million last year.
Union Gaming hailed the improvement, but noted that the Cosmopolitan “remains heavily reliant on nongaming as it continues to try to grow its gaming business.” More competition in the market (SLS Las Vegas and the Cromwell) could take a bite out of the Cosmo’s popular nightlife segment.
“Additionally, the property has received some negative PR recently in its continued battle with the Culinary Union including multiple union demonstrations in front of the property,” reported Union Gaming. “A protracted battle with the union could weigh on near-term operating results if it disrupts access to the property.”
