Las Vegas Sun NewsCaesars’ revenue up, but loss widens on interest costs
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29 February 2012
9:43 a.m.
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.
Caesars’ properties in Las Vegas are Bally's Las Vegas, Bill’s Gamblin’ Hall, Caesars Palace, Flamingo, Harrah's, Imperial Palace, Paris, Planet Hollywood and Rio.
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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220 million loss...in a quarter?
You are talking possibly losing close to a billion dollars over the course of a year. I don't care how you are increasing revenue, you are not going to overcome these interest losses. The $25 blackjack player is gone. His home was foreclosed. These losses are staggering. Yet, the executives are still cashing those 6, 7 and 8 figure paychecks. What exactly are they doing to earn this money when the company continues to bleed 200+ million per quarter?
a fundamental principle of business administration is: focus on your core business(es). there is way too much emphasis on the dining, shopping and clubbing and probably way too much expense involved in them just to grab headlines and pay celebrity dj's and wannabe star hosts. patrons of those gambling alternatives are not really gamblers. would it not be better to divert some of this HUGE money spent on alternatives back to gaming and rooms so that maybe gambling visitors will want to visit here, rather than stay in their own backyards?
Loveman is simply put a con artist. Just wait until the latest buyers of the IPO Caesars just initiated falls flat on its face when investors realize there are huge,unmanageable bond payments coming due.