Accounting Change Causes Quarterly Loss for Players

Players International Inc. in Calabasas reported a $3.72-million loss for its fiscal second quarter because of an after-tax charge of $3.80 million stemming from an accounting change.

The loss came despite a 29% increase in Players’ revenue for the quarter ended Sept. 30, to $5.80 million from $4.51 million a year earlier, when Players had a profit of $127,600.

Players operates the Players Club, which provides members with discounts at casinos and other recreation centers. It is also planning to operate a riverboat casino in the Midwest.

The charge reflects its decision to amortize its costs of obtaining new members of the Players Club over the initial membership period for new members--one year. Its previous practice was to amortize the costs over three years, Players said.

“This change in amortization for Players Club is more consistent with the accounting treatment of our other businesses,” Players Vice Chairman David Fishman said in a statement.

For the first half of its fiscal year, Players lost $3.65 million compared with a year-earlier profit of $431,000, and its six-month revenue jumped 42%, to $12.5 million from $8.81 million.