Seneca Gaming’s profit rises in 2nd quarter, reversing trend
By David Robinson
Updated: 2010-08-06

Seneca Gaming Corp.’s fortunes took a turn for the better in the second quarter.

The tribal-owned gaming company’s profits, excluding one-time charges and higher fees, grew by 6 percent during the quarter as gaming revenues inched up by 2 percent as its customers spent more money playing the expanded slot machine offerings at its three casinos in the region.

The rise in revenues reversed a more than year-long trend toward lower spending at the company’s casinos in Niagara Falls, Buffalo and Salamanca.

“Seneca Gaming Corp. is in a much stronger financial position now than it was just a year ago,” said Richard K. Nephew, the treasurer of the company’s board of directors.

Seneca Gaming’s profits rose to $24.1 million, compared with a loss of $82.7 million a year ago, when the company booked a $109 million impairment charge stemming from stalled construction projects, including the long-delayed Buffalo Creek Casino and Hotel. Excluding that charge, along with a $3.8 million increase in fees paid to New York state, the company’s profits rose by 6 percent from $22.5 million a year earlier.

Much of the 2 percent growth in overall revenues, which rose to $152 million from $149 million a year ago, was fueled by increased spending at the company’s expanded slot machine offerings.

Gaming revenues grew by 2 percent to $139.9 million from $137.2 million a year ago. Slot machine revenues, which account for 90 percent of the company’s gaming revenue, grew by 3 percent to $127 million as the company expanded its temporary casino in Buffalo and made additional investments in slots at its Niagara Falls and Salamanca casinos. Revenues from table games fell by 8 percent to $13.3 million..

Non-gaming revenues, which include sales from the company’s hotels, restaurants and stores, increased by 3 percent to $26.7 million, as higher sales at Seneca Gaming’s hotels, stores and entertainment events offset a slight drop in food and beverage revenues. Lodging revenues rose by 8 percent as the company increased the average room rate by almost 8 percent. Occupancy levels inched up to a little more than 97 percent, although more than four of every five rooms that were occupied was on a complementary basis.

Catherine Walker, Seneca Gaming’s president and chief executive officer, said the improved earnings show that the company “has continued to successfully manage the economic challenges that have been pervasive across our industry.”

Seneca Gaming operates Seneca Niagara Casino and Hotel in Niagara Falls, Seneca Allegany Casino and Hotel in Salamanca, and the Seneca Buffalo Creek slots-only casino in Buffalo.

http://www.buffalonews.com/business/article94524.ece