| | |  | Last Updated: Wednesday, February 27, 2008 |  | | | Gambling Operator Reports an Increase in Profits
- Monday, 7 Nov 2005
Harrah’s Entertainment is one of the largest land based gambling operators today. The company has recently reported an increase in their profits for the third quarter of 2005. The company’s profits have risen by 42% from the last quarter. The company attributes newly found success to the acquisition of Caesars Entertainment, another land based gambling operator. The rise in revenue is also attributed to a growing gambling entertainment demand from consumers. The company’s shares were traded at $63.11 (up by 3.3%) on last Thursday’s in the NYSE.
Harrah’s land based gambling facilities in Las Vegas reported a net income of $169 million, compared with $118.8 million a year earlier. Its diluted earnings per share fell, however, to 91 cents from $1.06, as the company issued 67 million shares in connection with the Caesars acquisition in June. Deutsche Bank analyst Marc Falcone explains, “All-in, we expected a messy quarter, and results came in slightly above our expectations”. The company’s total revenue has risen by 78.2% to $2.3 billion, while revenue at land based gambling properties open at least a year have risen by 3.8%.
Chief Executive Gary Loveman says, “Trips by our core customers went up during the quarter. The impact of higher gas prices on Harrah’s customers has been negligible. Even in a changing economic climate, our sophisticated revenue systems are our best ammunition against room rate fluctuations”. Notwithstanding results from the four casinos the company owns in Louisiana and Mississippi that had to be closed as a result Hurricanes Katrina and Rita, same-store revenue rose 7.3%. Gambling revenue from customers using Harrah’s Total Rewards loyalty program to earn free hotel rooms and other bonuses has also shown a 13.5% rise this quarter.
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