Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) today reported results for the three months ended June 30, 2011.
The Company’s revenues for the second quarter of 2011 were $58,815,000 compared with $58,458,000 for the second quarter of 2010. Gaming revenues were $53,129,000 compared to $52,722,000 for the second quarter of last year, with the addition of table game revenue offset by lower slot win.
Gaming profits were lower compared to the second quarter of last year as a result of the lower slot win and from high gaming taxes, license fees and costs associated with table game operations.
Occupancy levels in the Dover Downs Hotel were approximately 91% for the second quarter of 2011 compared with approximately 85% last year.Net earnings were $1,238,000, or $.04 per diluted share, compared with $2,277,000, or $.07 per diluted share for the second quarter of 2010. Denis McGlynn, the Company's President and Chief Executive Officer, stated: "As we noted at the end of our first quarter, the new gaming taxes are crippling the gaming industry in Delaware. A more reasonable gaming tax is essential if gaming operators in Delaware are to remain competitive. We must allow for continued reinvestment in facilities, amenities and entertainment offerings and we must have sufficient funds to implement competitive marketing and promotional initiatives if we are to remain the preferred destination for gaming patrons in a region with an ever growing number of new facilities all vying for the same customers. While our company’s market share in Delaware is increasing, the total Delaware pie is shrinking – a trend we need to reverse for the benefit of all stakeholders in Delaware’s gaming industry, including the State. This is something that we are intently focused on and hope to address with State Administration officials in the coming months.” The Company announced yesterday that its Board of Directors declared a quarterly dividend of $.03 per share payable on September 10, 2011 to shareholders of record at the close of business on August 10, 2011.