L’Auberge Lake Charles helping drive Pinnacle profits
Last Modified: Wednesday, October 24, 2012 10:09 PM
By Eric Cormier / American Press
L’Auberge Lake Charles figures prominently in Pinnacle Entertainment’s latest business report.
On Wednesday, the company released its third-quarter financial report, which shows revenues totaled $304.1 million for three months, an increase of $8.3 million from the same quarter in 2011.
Overall, the company has generated $895.4 million in revenue over a nine-month period.
During the third quarter, the Lake Charles property totaled $99.5 million in revenue, up $1.4 million in 2011.
The company reported $13.1 million in revenue at its recently opened Baton Rouge property, no changes in revenue at its St. Louis property and losses at properties in New Orleans, Bossier City and Indiana.
“Pinnacle’s properties in St. Louis and Lake Charles continue to make great progress in improving its operating outcomes. Our best-in-class properties and talented team members are achieving remarkable results,” CEO Anthony Sanfilippo said in a news release.
“We are dissatisfied with the performance of Boomtown New Orleans and are in the process of implementing changes to the property’s operating strategy to drive profitable revenue growth. We are confident, through key operating changes, in our ability to improve New Orleans’ performance in the coming quarter.”
Over the nine-month period, L’Auberge Lake Charles generated $297.3 million in revenue, making it the company’s top moneymaker.
Geno Iafrate, executive vice president of regional operations at Pinnacle Entertainment, told the American Press that Lake Charles benefits from the Texas market.
“We feel Houston remains under-penetrated,” he said. “We think that there’s a continued upside of that city and the rest of southeastern Texas.”
Iafrate said L’Auberge Lake Charles benefits from a well-planned business model.
“We continue to execute our strategy of offering guests a memorable experience at a fully integrated resort. We have more than 2,000 of the best and most dedicated service professionals in the industry,” he said.
“From gaming operations to nongaming operations, along with financial discipline and our marketing programs, each aspect of the business is performing at the highest level, and we are proud of that team in Lake Charles.”
Iafrate also said Pinnacle’s investment in Baton Rouge was based on sound business projections.
“We did not spend millions to split that market three ways. You look at the Baton Rouge market and take into consideration markets in northern parts of Louisiana, the New Orleans and Gulf Coast area, and instead of a $15 million market (based on totals from gaming operations already there), we see a $50 million market,” he said.
“I have to say we are extremely proud of it since the market has already generated $25 million with us in it.”
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