Turning Tables For Ameristar: The Second Quarter Revenue Slump

Well keeping up their reputation of stirring the world, Ameristar casinos had yet another stirring effect on the world of online gambling, when they declared that they had suffered a drastic reduction in overall profits for the second quarter, by almost about sixteen percent. Blackjack is a very famous game to be played in online casinos. In the financial report for the second quarter released recently, the online casino giant cited the raise in the borrowing costs due to a debt restructuring operation. This came as a shocker to all the various online casino companies in the market today, who had been for so long anticipating a turn around in the economy, which would finally surge their profits.

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Ameristar Casinos is a pioneer online gambling company, which has a strong hold on at least seven separate markets, including the likes of Nebraska, Denver, St. Louis and Omaha. According to the most recent financial statements released by the company, the net income fell from 17 million dollars last year, to 14.3 million dollars this year. This is equivalent to a fall of at least four to five cents per share, over a period of one year.

Analyzing the sector wise performances, the Jackpot in Nevada, the Black Hawk in Colorado, and East Chicago performed fairly well according to the company’s expectations, churning out the set revenue targets, or even exceeding them in certain cases. However, the Ameristar Kansas City failed to come up to the expectations of the company, and accounted for the greatest revenue slacks.

As soon as the announcement of this financial topple was made by the Ameristar officials, reviews and comments from various market analysts and experts started flowing in. According to a seasoned observer Jack Little; the topple was round the corner. According to little, the sloppy second quarter revenue outcomes for Ameristar as well as many other casino companies in general was a clear indicator of the fact that the recession blues were far from over for the online gambling industry, and there is still lot to come.

Talking in terms of the exact figures, there was an observed slump in the net revenue by about six percent. The overall revenue assimilated to a figure of 308.9 million dollars, against an estimated expectation of 318 million dollars as regards to the shares. The encouraging closing figure of twenty three dollars in the month of May, came down to 18.3 dollars a share on Nasdaq in the second quarter, exhibiting an astonishing slump of about 10.1 per cent.

As per the causes of this observed slump, the various online gambling and market experts have a unanimous opinion. The observed slack in the revenue has been amounted to the ever increasing competitive nature of the industry in certain markets, as well as to the financial crisis which has gripped the economy. As a result of this, the disposable income of the people has gone down drastically, which leads to a very less margin worth investing into online gabling. However the officials of the company are still optimistic that the improved and flexible operating cost structure would fare them out of this high tide situation soon. Let us wait and watch what luck has in store for the online gambling giant this time.

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