Revel announced the launch of a comprehensive cost-rationalization initiative, starting with the layoff of 75 salaried professionals—representing 2 percent of the current workforce—in order to improve the property's long-term performance.
“During the week ending July 7, 2013, we recorded the first profitable week in the property's history,” said Jeff Hartmann, Revel’s interim CEO. “During the July 4 week of 2012, Revel was materially unprofitable. This year, our gaming revenues were up substantially and our free slot play as a percentage of revenue fell significantly. Now, as we experience revenue growth, we must simultaneously reduce our cost structure that contributed to the $150 million dollar loss for the 12 months ending March 31, 2013. As we strive to operate Revel as a sustainable business year round, it is clear that we have to make some changes. We are disappointed that we must release professionals who have contributed to the opening of Revel, and we wish them success in their future endeavors.”
“The Revel organizational structure was established to support a level of revenues that have not been achieved over the 15 months of operation,” said Scott Kreeger, interim COO. “We hope that staffing level changes, while unfortunate, will start us on the path towards profitability and provide long-term stability for the more than 3,500 people who work for Revel. Given that our changes are focused on reorienting our staffing model given the level of business we are expected to achieve over the next 12-18 months, we expect no impact on the customer experience. In fact, as we get senior managers closer to operations, we would expect service to improve.”
According to the New Jersey Division of Gaming Enforcement's June 2013 Casino win results, Revel Casino-Hotel's slot market share increased from 3.7 percent to 4.3percent, a 16 percent gain, and overall, the property rose from 4.4 percent to 4.8 percent, a 9 percent gain. The 16percent increase was the largest in the market; the 9% increase the second-largest.
On July 1, Revel announced a new brand positioning: Gamblers Wanted, and began referring to the property as a Casino?Hotel. To kick off the new position, Revel launched the largest promotion in the history of the Atlantic City market—You Can't Lose—a one month rebate of all slot losses to customers with losses greater than $100 for the month.
“Revel wasn't built in a day, and the turnaround won't be finished in one,” said Randall A. Fine, managing director of The Fine Point Group, which is responsible for Revel's marketing function. “With ‘You Can't Lose,’ we intend to do everything we can to see that one?month's growth not be a fluke, but the beginning of a trend.”
The July financial results described above have not been audited, and are subject to traditional month- and quarter-ending financial practices.