Pinnacle Entertainment Releases Improved Casino Revenue Figures
When it comes to the casino gambling industry these days, it is not necessarily how much revenue that is made, but how much disaster is avoided. The recession has caused gaming companies to cut back their expenses, and in the second quarter of 2011, that strategy appears to be paying off.
Pinnacle Entertainment is one of those companies that has struggled during, and since, the economic recession of 2008. Stock prices were slashed during the recession, and only recently has there been any indication that improved revenue is on the way.
Pinnacle released their second quarter figures on Wednesday, and they represented an improvement over the same period last year. Pinnacle lost $18 million, or $.29 a share in the second quarter. That compares favorably to the $.81 a share, or $49.3 million the company lost in 2010's second quarter. It shows again that the industry is on its way to recovery.
Much like other companies, Pinnacle's stock is rebounding. Over the past year, the stock has traded between $9 and $16 dollars. On Wednesday, after news of the second quarter figures surfaced, the stock was trading at $14.31, an increase of 5.6% over the start of the day. The $.76 increase is one that Pinnacle executives hopes to become a trend.
Gaming companies were ravaged for the first time during a recession in the US during 2008. In past financial meltdowns, the casino industry has been immune to the collapses. This time around, however, customers stopped spending their entertainment money at the gaming establishments. Travel was down as well, meaning less customers in gambling-rich areas such as Las Vegas and Atlantic City.
Since the recession has ended, the gaming industry has slowly started to regain its popularity with the American public and overseas travelers. Pinnacle has been expanding their gaming options with dozens of states seeing their lawmakers expand casino laws. The expansion has hurt Las Vegas and AC, but the gaming companies have helped themselves out by opening new facilities in up and coming markets.
While Pinnacle had the best day on Wall Street, other gaming companies also experienced better days Wednesday than earlier in the week. MGM Resorts jumped 2.23%, to $14.19, while Las Vegas Sands was up $1.19 a share, closing the day at $46.79.
Wynn Resorts remained the most expensive gaming stock, with a closing price of $151.75. Wynn stock was up 3.35% on the day. Boyd Gaming and Century Casinos were two tough luck losers on Wednesday, dropping to $7.86 and $2.75, respectively.
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