by: Gene Koprowski.
Global Casinos, Inc. this week reported that fourth
quarter revenue grew by 96%. According to the firm, sales rose from
$1,688,000 to $860,000 in the same period a year ago.
The increase is attributable to the firm's acquisition last spring of the Doc Holiday Casino in Central City, Colorado, as well as improved quarter-over-quarter results at its flagship Bull Durham Casino in Blackhawk.
The company said that fourth quarter income from operations increased 120% to $95,000 from $43,000 in the year-ago fourth quarter. Net income increased to $49,000 from $12,000 in the fourth quarter last year, while net income attributable to common stockholders was $35,000, or $0.01 per diluted share, versus $12,000, or $0.00 per share, in the fourth quarter last year.
"Our aggressive efforts to strengthen Globe’s core casino operations resulted in a 19% quarter-over-quarter increase in organic revenue during the fourth period. We attribute this increase to the strength of our casino management software platform, as well as our employees' attention to customer service and the enhancements we have made to our targeted advertising and marketing programs. Collectively, these efforts helped fuel a marked improvement in our customer retention levels," said Clifford L. Neuman, president of the casino. "The momentum Bull Durham carried at the end of the fourth quarter has continued into the new year. In spite of challenging economic conditions, we currently expect to achieve a first quarter revenue increase at Bull Durham of between 10% and 12% versus the same quarter last year."
Neuman said management is concentrating on improving the financial and operational performance despite the tough U.S. economy. "We are working to combat this situation with tighter cost controls and targeted marketing programs. Doug James, our president and general manager of casino operations, spearheaded the successful growth initiatives at Bull Durham, and will now oversee the implementation of similar marketing and customer loyalty programs at Doc Holiday," said Neuman. "Given our operational team's track record, we are optimistic that Fiscal 2009 will be a year of continued improvement."
Neuman said likely passage of a Colorado ballot initiative could further enhance Global's prospects for long-term growth. If passed by the voters, Amendment 50 would allow local gaming communities to increase wager limits to $100 from the current $5 limit. In addition, casinos could add roulette and craps to their gaming operations, and expand their hours of operation. "The increase in wager limits will attract additional local and out-of-state customers, who normally would go to jurisdictions with higher wager limits," said Neuman.
Experts said that this amendment is leading in the polls and has received widespread support from local media, business organizations and educational institutions. Given the financial benefits this amendment would bring to Colorado's community colleges and three gaming towns, we are optimistic it will pass in November.
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