Isle of Capri Casinos, Inc. reported higher third quarter earnings Thursday (2/23) compared with a year ago, thanks in part to improved results at its new land-based Bettendorf Isle of Capri gambling facility.
Net income totaled $8.2 million (15 cents per share) for the three months ended January 22, compared with $6.6 million (13 cents per share) for the same period a year ago.
While overall revenues from the firm's 14 casino properties fell 1.4 percent to $194 million during the third quarter, net revenues at the Bettendorf riverfront casino were up 23 percent, compared to the same period last year, to $18.1 million.
Since the new land-based facility opened at the end of June 2016, the Bettendorf Isle has been the top revenue-producer among the three Quad Cities casinos, Isle CEO Eric Hausler stated in the company's earnings news release. The Isle competes against Jumer's Casino Hotel in Rock Island, and the new land-based Rhythm City Casino at the Interstate 74 and Interstate 80 intersection, north of Davenport.
"We are pleased with the initial returns on our investment and expect the property (Bettendorf) to continue to ramp up as we optimize our expense structure," Hausler stated. The company spent $53 million on the new Bettendorf casino, according to Hausler, well below the previously announced $60-million budget estimate. After moving to its new location between its two hotels on the Bettendorf riverfront last year, the Isle sold the riverboat for $1 million.
The Isle has operated a gambling boat on Bettendorf's riverfront since the early 1990's, competing with the Rhythm City riverboat casino operating along Davenport's riverfront. Both riverboat casinos saw their revenue hurt by the opening of the land-based Rock Island casino.
The Isle of Capri, based in suburban St. Louis, agreed last September to be acquired by Eldorado Resorts of Reno in a stock and cash transaction valued at $950 million. Hausler said the transaction is expected to close in the second quarter of this year.
CLICK HERE to download the full Isle earnings report.
