..

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

What Do Broken Down McDonald's Milkshake Machines Have to Do With a Bitcoin Mastercard Conspiracy?

If franchisees want to switch solutions, the only option that the parent corporation allows is to switch to a software “upgrade” called “Powerhouse Dynamics,” which is owned by the parent company of Taylor, so you can't really escape the system.  Enter Mastercard's similar setup with Bitcoin.

The Crypto Beat - July 28, 2021: Bitcoin Crosses Over $40K Again

The Crypto Beat - July 28, 2021: Bitcoin Crosses Over $40K Again

Plus EU’s ban on anonymous digital currency transfers—a deep dive....cryptocurrency won't be so anonymous any more. 

Bloomberg: DOJ Probing Tether of Bank Fraud

Bloomberg: DOJ Probing Tether of Bank Fraud

A U.S. probe into Tether, a digital token widely used to trade Bitcoin, is looking into whether executives behind the digital token committed bank fraud, a potential criminal case that would have broad implications for the cryptocurrency market, according to a report filed by Bloomberg News Monday morning.

Three Important Features a Pay Per Head Should Offer

Three Important Features a Pay Per Head Should Offer

When selecting a Pay Per Head sportsbook software, there are three primary things to consider in addition to the required reporting, lines management and customer service component. 

BSV Network Attacked: CoinGeek Explains What Happened

BSV Network Attacked: CoinGeek Explains What Happened

The BSV Network has come under attack in recent weeks, more specifically June 24, 2021 and then again on July 1, 6 and 9.  This is likely to become a trend targetting all blockchain networks and crypto sites.

Syndicate