Trump Hotels & Casino Resorts, Inc. (NYSE:DJT) announced today that for the second quarter ended June 30, 1998, consolidated net revenues were $344 million, compared to $368 million reported for the same period in 1997. THCR`s EBITDA (earnings before interest, taxes, depreciation, amortization and CRDA) for the quarter was $60 million versus $68 million reported in the prior year`s second quarter. The net loss was $11.0 million, or $0.49 per share, compared to a net loss of $3.2 million, or $.14 per share in the 1997 quarter, within analysts` range. Interest expense continues to adversely affect our bottom line, which is why our ongoing top priority is to restructure our debt and reduce our costs. On July 10, 1998, the Company announced that Trump Marina has offered to purchase its outstanding 11 3/4% mortgage notes due 2003 as part of a refinancing of all of its debt with new bank financing. When consummated, the transaction is expected to save Trump Marina approximately $9 million per year in interest costs.
Our focus on overall profitability is being supported by an emphasis on cost controls, which includes our refinancing efforts. At the same time we will be continuing our advertising campaigns, which are proving effective in attracting new guests.
Our promotional allowances, gaming costs and administrative expenses were all substantially lower as compared to last year, and the management of these initiatives, among others, resulted in improved operating margins at Trump Plaza and Trump Marina, and continued strong margins at Trump Taj Mahal. Also noted that the Plaza`s operating margin improved to 18.3% for the quarter, compared to 17.4% for the 1997 second quarter. The Marina`s operating margin improved from 15.5% to 16.8% for the quarter. The Taj`s operating margin remains strong at 21.6%.
Trump Taj Mahal Associates reported net revenues of $139.1 million and EBITDA of $30.0 million for the 1998 second quarter ended June 30. Net revenues for the 1997 second quarter were $147.0 million and EBITDA was $34.0 million. Year to date net revenues at Trump Taj Mahal were $265 million versus $285 million in 1997, while EBITDA for the six months ended June 30, 1998 was $54.2 million versus $64.1 million for the comparable period in 1997, reflecting the abnormally low table game win or “hold” percentage during the first half of 1998. At last week`s THCR annual meeting that July results at the Taj have substantially erased the year over year shortfall comparison to the first half of 1997 and that operating results continue to look strong for the second half of 1998.
Trump Plaza Associates reported another good quarter for the three months ended June 30. Administrative expenses continued to be contained so that EBITDA for the second quarter of 1998 was $18.7 million versus $19.0 million reported in 1997 on revenues of $102.4 million for the second quarter of 1998, as compared with $109.5 million for the same period in 1997. On a year to date basis, EBITDA continues to be ahead of last year by $1.5 million, totaling $34.5 million in 1998 as compared to $33.0 million in 1997.
Trump Marina also continued to do well in the second quarter. Net gaming revenues decreased $8.2 million to $66.8 million in 1998 from $75.0 million in 1997. Reductions in promotional allowances, gaming and administrative expenses offset virtually all of the decline in revenues. EBITDA was basically constant for the quarter at $11.3 million versus $11.6 million in 1997. This continues the trend of the first quarter so that year to date EBITDA is ahead of last year at $20.7 million versus $20.4 million in 1997.
Trump Indiana enjoyed increased activity during the second quarter as the market continued to stabilize during the period. The second quarter`s revenue recovery continued into the third quarter to the $13 million per month level. EBITDA for the second quarter was $4.5 million versus $7.0 million in 1997. It is expected that second half of 1998 results at Trump Indiana will substantially exceed the $6.8 million in EBITDA experienced in the second half of 1997. Trump Indiana not only greatly increased its revenues in July 1998 19.5% over July 1997, but this trend is expected to continue through the second half of 1998 with the opening of Trump Indiana`s new hotel.
Trump Atlantic City Associates reported combined net revenues of Trump Plaza and Trump Taj Mahal for the 1998 second quarter of $241.4 million versus $256.5 million for the 1997 second quarter. EBITDA was $48.8 million with a net loss of $4.6 million, compared to EBITDA of $53.0 million, and a net income of $2.7 million for the same period of 1997.
We are pleased with the operating results at each of the properties in Atlantic City and that continuing diligent efforts on the cost side of the business as well as increased marketing activities will help the Company meet—or exceed—its 1998 operating profit targets.
During the Company`s annual meeting on August 6, 1998, at Trump Taj Mahal, it was noted that July revenue and EBITDA levels are up substantially in 1998 over 1997, giving a strong start to operating results for the third quarter.
For the six months ended June 30, 1998, the Company reported consolidated net revenues of $661 million compared to $710 million for the same period in 1997. EBITDA was $108.6 million for the 1998 six-month period versus $128.2 million for the same period of 1997. The net loss was $28.7 million, or $1.29 per share, for the six-month period ended June 30, 1998, and $17.2 million, or $.74 per share, for the same period of 1997.
Trump Hotels & Casino Resorts, Inc. owns and operates Trump Plaza Hotel & Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino in Atlantic City, New Jersey, as well as Trump Indiana, the riverboat casino at Buffington Harbor, Indiana, on Lake Michigan. It is the exclusive vehicle through which Trump will engage in new gaming activities in both emerging and established gaming jurisdictions in both the United States and abroad.