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Howard Stutz

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Affinity Gaming reverses second-quarter loss

10 Aug 2015

By Howard Stutz
Affinity Gaming reversed a second-quarter net loss, which the Las Vegas-based company's chief executive credited to a change in the casino operator's marketing approach.

Affinity, which owns the off-Strip Silver Sevens Hotel and Casino, the three Primm properties and casinos in Iowa, Missouri and Colorado, said its net income for the quarter that ended June 30 was $797,000, compared to net loss of $14.3 million a year ago. Affinity reported net revenue of $101.9 million, an increase of 2.2%.

The company is not publicly traded, but has publicly owned debt.

Affinity CEO Michael Silberling said on a conference call the company's casinos are focusing more on profitable high-level customers than low-tier customers.

Affinity grew cash flow 39% in the second quarter, which followed a cash flow increase of 30% in the first quarter.

"To our knowledge, no other competitor has matched our improvement in (cash flow) over this period," Silberling said.

Revenue at Affinity's Nevada casinos increased 3.3% to $60.4 million.

Silberling declined to comment on an offer by Illinois-based Z Capital, Affinity's largest shareholder, to buy the rest of the company. He said the issue is being handled by a board committee.

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