The Cosmopolitan hotel and casino, located on the Las Vegas Strip, was first opened in 2010. The casino had yet to report a quarterly profit since opening five years ago, until now. A quarterly profit was posted for the second quarter, showing an earnings report of $15.3 million, which was compared to a loss of $13.6 million one year ago.
The property was purchased for almost $1.73 billion last December by an affiliate of Blackstone, a private equity firm. ?The financial filing of the property showed that the company had cut expenses by almost 17% in the past three months by spending less on marketing and advertising. The Cosmopolitan was subject to a fire back in July in the outdoor pool area of the property. Officials of the property noted that they do not believe the damage costs will be significant, as insurance should cover the cost.
The company earned a 20% increase from the casinos but the revenues for the shops, entertainment venues, restaurants and bars did drop. Only 13 entertainment events were hosted this quarter, which is much lower compared to the 24 hosted at the same time frame in 2014. Revenues at the Marquee nightclub, where the entertainment takes place, dropped by $3.1 million.
Also affecting the financials were the hotel revenues which slightly dropped due to lower occupancy rates. The company is offering fewer free rooms which has resulted in lower traffic numbers. Several lawsuits were also settled by the company, which cost at minimum $21.5 million which would be added to the earlier quarter results.