Caesars losses continue to grow
By Anna Prior and Josh Beckerman, Wall Street Journal
Caesars said its most recent results reflect strength in Las Vegas, helping to offset less favorable conditions in Atlantic City, N.J., and regional markets.
Caesars Entertainment Corp. said its second-quarter loss widened as the casino operator said strong Las Vegas results were offset by persistent softness in Atlantic City and regional markets, including Lake Tahoe. Caesars in the parent company of Harrah’s Lake Tahoe and Harveys in Stateline.
Caesars has struggled to recover fully from the recession and hasn’t posted a profit since late 2009. The company runs casinos across the U.S. with hubs in Las Vegas and Atlantic City. It has been weighed down by its debt load since the recession, and its failure to acquire a gambling license in Macau has hobbled its ability to compete in that fast-growing market.
Last week, Caesars and a group of its creditors traded competing lawsuits over the company’s plans to rework its more than $20 billion debt load.
On Monday, Caesars reported a second-quarter loss of $466.4 million, or $3.24 a share, compared with a prior-year loss of $212.2 million, or $1.69 a share. The loss from continuing operations widened to $3.06 a share from $1.65.
Atlantic City News:
News Just in…
Revel, AC’s biggest and newest Casino announced that it was unable to find a buyer and is set to close it’s doors in September. That is along with 2 other casinos including one of Caesar’s Properties.
3 of 11 Atlantic City casinos closing in September.
Well, this ought to be interesting.
48 states with some form of legalized gaming.
Internet gaming.
Nuff said.
If the competition is offering a better product, better value, or more convenience, you better sharpen your edges.
If you find yourself in a hole, stop digging.
While I’ve criticized Caesars on here before, I’ve got to say ‘Thanks’ for spending money you clearly don’t have to bring all those concerts into town!
And at least for the sake of our town, good to know Montbleu is doing well. Plus, that a Hard Rock Hotel, run by a healthy Warner Gaming, is coming!!
When Bill Harrah died, Holiday Inn (nee Promus Corp)(nee Harrah’s Entertainment)(now Caesar’s) saw the opportunity to ‘export’ gaming (& jobs) to other places, so sold off (in two ‘installments’) their Motel rooms – 50,000 in Europe, then 250,000 in the U.S. to capitalize that “expansion”. . .
So every jurisdiction then thought that was the way to offset declining budgets with a casino of their own – and it had to “give” at some point. . . as it is obviously now doing. . .
So between Gary Loveman’s empirical acquisitions and the fact that (as one of those lawsuits is about) the least capital-dependent of the enterprises are being sold to ‘themselves’ (i.e., the online gaming corporation), so that can’t perform on part of the debt obligation – and retain that part of any growth for ‘themselves’. . .there are some serious issues arising. . . especially with $ 20 billion in accumulated debt to pay back. . .
The entertainment dollars mentioned as ‘sacrificed’ on our behalf was inspired by the introduction of a UNR [Black Rock Press] book by the late & legendary Harrah’s P.R. person, Mark Curtis, entitled:
“It was Great While It Lasted” ‘Northern Nevada’s Entertainment Heyday’. . . which chronicled what effect those ‘heydays’ had on South Shore business (Reno, too) that went away after the sale [there was a long lull with no entertainment at all], before they reintroduced it behind Harvey’s in a more perpendicular form than now (they repositioned the stage further away from the stateline to allow for more people per show).
Simply put, entertainment was what allowed Harrah’s to pretty much fill all the motel rooms in town by himself, as none of the others could afford to bring those people to town, especially absent the draw of a Bill Cosby or a Glen Campbell. . .and earlier on, ‘corporate’ had not noticed that, not knowing any better. . . before that book. . .