Caesars 3Q loss worse than expected
By AP
LAS VEGAS — Caesars Entertainment Corp. said Tuesday that its third-quarter loss expanded by more than 50 percent due to weakness in the U.S. gambling market and stiffer competition.
Casino revenue fell 7 percent because of fewer visitors to its properties in Atlantic City and other U.S. markets outside of Nevada. Caesars also lost revenue from selling part of its stake in a casino in Uruguay.
Caesars is the parent company of Harrah’s Lake Tahoe and Harveys in Stateline.
The company lost $761.4 million, or $6.03 per share, for the quarter that ended Sept. 30. A year earlier its loss was $505.5 million, or $4.03 per share.
The loss from continuing operations came to $6.12 per share, far short of Wall Street’s prediction of $1.28 per share. The company absorbed an accounting charge of $930.9 million for writing down the value of assets in Atlantic City and other U.S. markets outside of Las Vegas. That compared with a similar charge a year ago of $419 million.
Revenue fell less than 1 percent, to $2.18 billion from $2.2 billion. Analysts surveyed by FactSet expected $2.24 billion.
In Las Vegas, however, revenue rose about 5 percent to $773.5 million, as Caesars brought in more money from gambling, hotel rooms and food.
The casino business was among the industries hardest hit by the economic downturn, and has been slow to recover. Visitor numbers are only now returning to 2007 levels in Las Vegas.
Also Tuesday, Caesars said that private equity firms Apollo Global Management and TPG Global are adding to their investment in a company called Caesars Acquisition Co., which has applied to trade on the Nasdaq. Their total investment now comes to about $600 million, Caesars said.
Caesars Entertainment and Caesars Acquisition plan a joint venture called Caesars Growth Partners, which will acquire assets for online gambling.
Caesars shares had fallen 16 cents to close at $18.40 before the results were released. They fell another 50 cents, or 2.7 percent, to $17.90 in after-market trading.
And their situation in Tahoe is so desperate that they’re bringing in acts that have been convicted of assaulting women to salvage their failing nightclub!
Can’t believe Live Violence Free hasn’t spoken up about this!
Yeah Parker, I’m sure thats exactly what they wanted to bring in specifically. Tool.
Interesting as the Caesars, a.ka. Harrah’s, story continues to unfold and hit south lake Tahoe hard.
Sometimes my memory gets fuzzy … but was is not this group, this private equity ownership group if I recall correctly, that returned the development rights back to the city? After which, following two years of shopping to developers with no luck, became smarter than everyone else and went on to develop the hole?
That was the story was in’t it?
Since then these owners have savagely leveraged the company and it is in an apparent death spiral… I predict more bad news will come.
Another SLT illustration of what went wrong with America.
This is where the tax laws are messin’ us up in society. This is the land of “private equity” and most all of you out there are not allowed to play here!
But these LP buffoons can destroy neighborhoods, towns and thousands of families livelihoods and get tax leverage to do it.
Or maybe something far less nefarious is at play CJ, specifically that the gaming market is so saturated due to 48 states now having some kind of legalized gaming. But of course your conspiracy theories are much more colorful.
Not sure what exactly you’re getting at Jason? But the criminal record of their Halloween act is well-publicized! So they absolutely are aware of it!
This from a company that fires their long-time, loyal, not a blemish in their file, staff for having the audacity to card the women hanging out with one of their celebrity golfers?!
It’s shamelessly hypocritical, and one of the many reasons why they’re having problems! And name calling does not justify it!
Flavor Flav is a national treasure and musical genius.
You white people just don’t get it.
Yes, a criminal record of female assault is something to treasure!
Actually, I hope that’s something people of all races can be united to be against!