..

Caesars Posts $196.7 Million Loss as Atlantic City Gambling Revenue Falls

Written by:
Guest
Published on:
Feb/25/2011

By Beth Jinks

(Bloomberg) - Caesars Entertainment Corp., the world’s biggest casino company, reported a fourth-quarter loss after cost cuts and the acquisition of a Las Vegas casino failed to offset declines in Atlantic City, New Jersey.

The net loss of $196.7 million compares with a profit of $295.6 million a year earlier, when earnings were boosted by a gain from extinguishing debt early, the Las Vegas-based company, formerly called Harrah’s, said today in a statement. Sales rose 1 percent to $2.12 billion.

Las Vegas casinos are beginning to recover following record declines since Caesars was taken private in a January 2008 buyout. Caesars canceled a planned initial public offering last year, after Chairman and Chief Executive Officer Gary Loveman reduced costs, slashed debt and extended maturities in a series of balance sheet restructurings.

Gains from the addition of Planet Hollywood, bought a year ago, were “offset by the continuing impact of the weak economy on customers’ discretionary spending ” Caesars said in the statement. “However, certain markets, including Las Vegas, have shown signs of stabilization and improving operating margins.”

Cash flow, measured as adjusted earnings before interest, taxes, depreciation and amortization, increased 5.1 percent to $439.9 million in the quarter.

Las Vegas cash flow gained 5.2 percent to $183.7 million, boosted by the addition of Planet Hollywood. In Atlantic City, where Harrah’s owns four casinos, Ebitda tumbled 51 percent to $32.9 million.

Caesars canceled its IPO in November, citing “market conditions.” The IPO aimed to raise more than $500 million for expansion, including finishing the Octavius Tower at Caesars Las Vegas, and developing the LINQ retail and entertainment area next to the Flamingo. The company yesterday priced a $400 million loan to fund the projects.

Leon Black’s Apollo Management LP and David Bonderman’s TPG Inc. took Las Vegas-based Caesars private for $30.7 billion, including debt and transaction costs.

Caesars will invest in and run two casinos in Cleveland and Cincinnati, Ohio, being developed by Dan Gilbert, the founder and chairman of Quicken Loans Inc., the venture, Rock Ohio Caesars LLC said in December.

Caesars bought the Planet Hollywood Resort & Casino from default a year ago, gaining a Las Vegas Strip property next to its other resorts for less than it would cost to build.

Business/Financial News

The Bitcoin White Paper: Combining and Splitting Value and Privacy

The Bitcoin White Paper: Combining and Splitting Value and Privacy

Dr. Craig S. Wright and Ryan X. Charles continue the video discussions in a series exploring the Bitcoin White Paper line-by-line. The next section tackles the principles of combining and splitting value as well as looking at how privacy relates to Bitcoin.

Coinbase Goes Public, Exposure to Regulatory Danger?

Coinbase Goes Public, Exposure to Regulatory Danger?

Coinbase is making its initial public offering of stock April 14 and this has helped push the price of Bitcoin up to near $64,000 as of Wednesday morning.

Sudan Embraces the Blockchain, Arizona One Step Closer to Sports Betting

Sudan Embraces the Blockchain, Arizona One Step Closer to Sports Betting

The Bitcoin Association and the BSV delegation was welcome by the Sudan government last week in an effort to implement blockchain technology and this week Arizona was well on its way to becoming the next US state to legalize sports betting with only the Governor's signature needed.

Lawsuit Filed Against Dr. Craig Wright "Father of Bitcoin": Not Author of White Paper?

Suit Filed Against Craig Wright "Father of Bitcoin": Not Author of White Paper?

Suit seeks to prove Wright is NOT the rightful founder of Bitcoin, but some would argue we will know otherwise in due time.

Ethereum-based Virtue Poker Gets Malta Clearance

Ethereum-based Virtue Poker Gets Malta Clearance

Ethereum-based startup Virtue Poker plans to conduct an initial DEX offering (IDO). While these types of announcements typically get lost in the crypto waste dump - often where they belong - this one has a little more punch.

Syndicate