Revel Announces First Profitable Week in Property History: Cost-Cutting Phase of Post-Emergence Turnaround to Commence
ATLANTIC CITY, N.J., July 15, 2013 /PRNewswire/ -- Today, Revel Casino-Hotel announced that the first week of July, 2013 was the first profitable week in the property's fifteen-month history. In addition, as it continues to reframe and reshape its marketing strategy, the property announced the launch of a comprehensive cost-rationalization initiative, starting with the layoff of 75 salaried professionals – representing 2 percent of the current workforce – in order to improve the property's long-term performance.
"During the week ending July 7, 2013, we recorded the first profitable week in the property's history," said Jeff Hartmann, Interim Chief Executive Officer. "During the July 4th week of 2012, Revel was materially unprofitable. This year, our gaming revenues were up substantially and our free slot play as a percentage of revenue fell significantly. Now, as we experience revenue growth, we must simultaneously reduce our cost structure that contributed to the $150 million dollar loss for the 12 months ending March 31, 2013. As we strive to operate Revel as a sustainable business year round, it is clear that we have to make some changes. We are disappointed that we must release professionals who have contributed to the opening of Revel, and we wish them success in their future endeavors."
"The Revel organizational structure was established to support a level of revenues that have not been achieved over the 15 months of operation," said Scott Kreeger, Interim Chief Operating Officer. "We hope that staffing level changes, while unfortunate, will start us on the path towards profitability and provide long-term stability for the more than 3,500 people who work for Revel. Given that our changes are focused on reorienting our staffing model given the level of business we are expected to achieve over the next 12-18 months, we expect no impact on the customer experience. In fact, as we get senior managers closer to operations, we would expect service to improve."
According to the New Jersey Division of Gaming Enforcement's June 2013 Casino win results, Revel Casino-Hotel's slot market share increased from 3.7% to 4.3%, a 16% gain, and overall, the property rose from 4.4% to 4.8%, a 9% gain. The 16% increase was the largest in the market; the 9% increase the second-largest.
The July financial results described above have not been audited, and are subject to traditional month- and quarter-ending financial practices.
About Revel Casino-Hotel
Revel Casino-Hotel: Gamblers Wanted. Revel offers casino players the newest and most expansive casino resort in the history of Atlantic City. Located along the city's world-famous boardwalk, and designed to offer endless views of the Atlantic Ocean, the casino offers 130,000 square feet of gaming space, the largest contiguous smoking casino in Atlantic City, 2,400 slots – none more than a year old, 130 table games, the high-limit Pearl Slot Lounge and high-limit table game Ultra Lounge. Revel features 1,399 ocean view rooms, indoor and outdoor pools, gardens, lounges, a 32,000-square-foot spa, 14 restaurants serving world-class cuisine and down-home favorites, a collection of boutiques, nightclubs, a dayclub and live entertainment on its stages at The Social and Ovation Hall.
For additional information and updates, please visit www.revelcasino.com.
SOURCE Revel Casino-Hotel