New Trump Taj Mahal owner suffers 20% revenue drop
Icahn Enterprises, the holding company which last week completed its acquisition of Atlantic City casino the Trump Taj Mahal, has reported a 20.3% year-on-year decrease in revenue for 2015.
The firm, which is owned by billionaire Carl Icahn, saw revenue for the year fall to $15.27bn.
Net loss was up from $529m to $2.13bn, with net loss attributable to Icahn Enterprises worsening from $373m to $1.19bn.
On Friday the Trump Taj Mahal exited chapter 11 bankruptcy protection to become a wholly owned subsidiary of Icahn Enterprises LP.
The deal also removed the 10% ownership stake of US presidential candidate Donald Trump, although his surname will remain on the property.
Trump founded Trump Hotels & Casino Resorts but has not been directly involved with the company, later known as Trump Entertainment Resorts, since 2009, although he is understood to have received the 10% stake in return for the continued use of his name.
Of the three Atlantic City casinos once owned by the firm, Trump Plaza closed in 2014, Trump Taj Mahal remains, and Trump Marina is now the Landry’s-owned Golden Nugget Atlantic City.
Icahn completed the purchase of another Atlantic City casino, Tropicana Casino and Resort, for $200m in March 2010, again bringing the venue out of bankruptcy.
According to the Associated Press, Icahn has been keeping the casino afloat since it filed for bankruptcy in September 2014.
“Although both Atlantic City and the Taj have had a few tough years, today marks the beginning of the turnaround,” said Icahn.
“Just a few years ago, Tropicana was in bankruptcy and its fate uncertain, but since emerging in 2010, we have turned that property around and it has become one of Atlantic City’s few success stories.
“I am confident we can and will do the same for the Taj.”
In January a federal appeals court in Philadelphia upheld a decision allowing the Trump Taj Mahal to escape union contracts relating to health care and other benefits.
The Wall Street Journal reported at the time that Icahn had delayed implementing the chapter 11 exit plan until after the court ruled in his favour, as he believed he couldn’t afford to keep the establishment open if the contracts remained in place.
New Jersey regulator the Division of Gaming Enforcement reports that the Trump Taj Mahal made $75.5m revenue for Q3 2015, down 16.7% year-on-year, placing it seventh out of the eight Atlantic City casinos currently operating.
Tropicana was fourth with $120.6m, up 3.3%.
The gross operating profit of Trump Taj Mahal for Q3 soared 181.7% to $16.2m, ranking it sixth.
Tropicana was fourth with $26.1m, up 41%.
The market leader is Borgata, which recorded $303.6m revenue for Q3 2015, alongside gross operating profit of $82.1m.
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