Kempf said that the property suffered a loss in earnings before interest, taxes, and depreciation during its first two months of operation, but that it expected to break even this month.
When reached Friday night, a Revel spokeswoman said management had no comment on the analyst's report.
Kempf said non-gaming revenue — such as for food, drink, and group bookings for the casino's meeting space — was doing well. But gaming revenue, particularly from slot machines, was "well below expectations."
The new Boardwalk mega-casino ranked eighth in gambling revenue since its April 2 debut. It posted gambling revenue of $13.4 million in April and $13.9 million May, consistent with the struggling overall market.
Gaming revenues on a same-store basis for A.C.'s 11 casinos, excluding Revel, were down 14.6 percent in April and 14.3 percent in May.
"Of course the real work now begins," Revel CEO Kevin DeSanctis said in a June 12 statement. "Our business model is dependent on more than gaming revenue. However, gaming revenue is clearly an important component … and that is an area which we are intent on improving."
DeSanctis said the casino began slot promotions the third week of May and planned to maximize that campaign over the summer.
Revel has lean operations and management believes it can further cut costs, Kempf said. He also said its focus on growing the A.C midweek convention market was smart.
But the property opens to unprecedented competition. When Borgata — Revel's biggest rival and Atlantic City's top-grossing casino — opened in 2003, there were no casinos in Pennsylvania, New York and Maryland.
"The next few months are crucial for Revel to begin generating cash before the interest escrow period ends in November," Kempf said.
Contact Suzette Parmley at 215-854-2594 or firstname.lastname@example.org.