Caesars’ revenue up, but loss widens on interest costs
29 February 2012
Hotel-casino operator Caesars Entertainment Corp. of Las Vegas said Wednesday that revenue increased in the fourth quarter, though the company posted a higher net loss from a year earlier.
Overall revenue of $2.172 billion was up 2.4 percent from the year-ago quarter.
But Caesars posted a net loss of $220.6 million, or $1.76 per share, compared with a loss in the year-ago quarter of $196.7 million, or $1.71.
The higher loss in the 2011 quarter was caused partly by higher interest expenses, which increased from $509.7 million to $673.9 million on a year-over-year basis.
Caesars, which has properties around the country, said its Las Vegas resorts were hurt by "relatively flat trips (number of visits) and a decrease in spend per trip."
Nevertheless, revenue at the corporation's properties increased 5.6 percent to $767.2 million thanks to higher hotel rates and strength in the international, high-end gaming segment that includes baccarat.
Hotel revenue for Caesars in Las Vegas in the quarter increased 8.2 percent as cash average daily room rates improved from $84 to $91.
Overall, Caesars said it benefited from "strengthening fundamentals in the overall Las Vegas market" in 2011.
"The outlook for continued strong group bookings and increased visitation to that market bodes well for the success of our Caesars Palace projects, including the Nobu hotel tower and restaurant additions and the Octavius Tower completion, which opened to the public in January this year. Work is progressing on the Linq retail, dining and entertainment experience that will open on the Strip in phases in mid to late 2013," Caesars CEO Gary Loveman said in a statement.
Elsewhere in Nevada, Caesars’ properties in Laughlin, Reno and Lake Tahoe saw net revenue in the quarter increase 1 percent to $94.9 million.
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