September 17, 2007
And that's not all!
Analysis of:
TROPICANA MAKEOVER ON HOLD NOW | www.lvrj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Let's take a closer look at Columbia Suussex from a companywide level
Analysis: Let's look more closely at Columbia Sussex from their gaming operations side. In addition to their nonaction in Las Vegas, they have problems elsewhere. In atlantic City, the company has done extensive job cutting which granted has aided their bottom line greatly. However, their slots revenue through July was done 10.5% and in August down a whopping 17.8%. No amount of cost cutting is going to mitigate these revenue decreases for any extended period. In Indiana, Columbia Sussex has a property in the south which now ranks 5th out of 5 casinos in revenues. Even the French Lick casino which has had a ton of problems of their own has pulled ahead of C.S. In each of these 2 properties, unions are rearing their ugly heads and drooling at the sight of employees being virtually pushed into the union. In Louisiana, the belle of baton rouge has the same syndrome as in ac and ind., last in revenue growth and actual negative growth. The company has 2 properties in Lauglin, Nevada and nobody wants 2 properties in laughlin so they should rid themselves of one othe existing properties. Add in Las Vegas to this scenario and it is not a pretty picture. The answer? What was it Jerry Mcquire said "show me the money"? Well I would say to Columbia Sussex, "show me the marketing". We all like cost cutting but we also know that is a short term fix, you need to market your property and grow revenues at some point. Columbia Sussex has failed to do it, thus far.
Analysis: Let's look more closely at Columbia Sussex from their gaming operations side. In addition to their nonaction in Las Vegas, they have problems elsewhere. In atlantic City, the company has done extensive job cutting which granted has aided their bottom line greatly. However, their slots revenue through July was done 10.5% and in August down a whopping 17.8%. No amount of cost cutting is going to mitigate these revenue decreases for any extended period. In Indiana, Columbia Sussex has a property in the south which now ranks 5th out of 5 casinos in revenues. Even the French Lick casino which has had a ton of problems of their own has pulled ahead of C.S. In each of these 2 properties, unions are rearing their ugly heads and drooling at the sight of employees being virtually pushed into the union. In Louisiana, the belle of baton rouge has the same syndrome as in ac and ind., last in revenue growth and actual negative growth. The company has 2 properties in Lauglin, Nevada and nobody wants 2 properties in laughlin so they should rid themselves of one othe existing properties. Add in Las Vegas to this scenario and it is not a pretty picture. The answer? What was it Jerry Mcquire said "show me the money"? Well I would say to Columbia Sussex, "show me the marketing". We all like cost cutting but we also know that is a short term fix, you need to market your property and grow revenues at some point. Columbia Sussex has failed to do it, thus far.
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