Cosmopolitan Reports Profit

Cosmopolitan has reported their first ever profit, earning just over $15 million in the second quarter of 2015.

It looks like the strong results were fueled by two things: increased casino revenue and cost cutting in other areas.

Revenues:

Casino +20.94%
Hotel -0.63%
F&B -10.12%
Entertainment, retail and other -22.65%

Expenses:

Casino +23.73%
Hotel -2.46%
F&B -20.20%
Entertainment, retail and other -39.19%
Sales and Marketing -34.19%

Blackstone is the new owner of Cosmopolitan and it appears they are shifting the focus away from food, beverage, entertainment and retail and putting more of an emphasis on the casino, something the previous owners didn't do.

Another interesting thing in the quarterly report: the company is spending money to complete unfinished rooms. I had no idea that rooms were still unfinished, so that was kind of surprising. Given Cosmopolitan's ultra high room rates I would have thought the previous owners would have wanted to finish the rooms as quickly as possible.