On October 21st, 2008, the Monarch Casino and Resort Incorporated, the proprietor of the Atlantis Casino Resort Spa in Reno, Nevada said that their net earnings during the 3rd quarter of the year dropped by fifty percent as revenue drop and promotional giveaways for customers grow higher.
Net profit slide down to $4 million or $.25 per share, from $8 million or $.41 per share in the year ago quarter. Net profit dropped by eleven percent to $38.8 million from $43.6 million. The analysts surveyed by Thomson Reuters expected profits per share of $.21 and revenue of $38.5 million.
Casino operating costs grew by 8.2 percent to $10 million, due to free complimentary of free food, drinks and other miscellaneous services to customers. Chief Executive John Farahi pointed to the weak economy in the Northern Nevada area for the revenue drop while profits were hut by aggressive marketing and discount promotions started by their competitors. The shares of the Monarch Casino drop by $.10 to close at $6.70.
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