February 11, 2005
-
Friday, February 11, 2005
Copyright © Las Vegas Review-Journal
A quarter to cheer for Caesars
Caesars Palace performance helps parent company boost profits
By HOWARD STUTZ
REVIEW-JOURNAL
Strip casinos controlled by Caesars Entertainment, primarily the flagship Caesars Palace, propelled the company’s earnings in 2004 and helped the soon-to-be-purchased casino operator to increases in net revenues for both the fourth quarter and the full year, executives said Thursday.
Caesars said its 27 casinos worldwide brought in $1.01 billion during the three months ended Dec. 31, an increase of 6.5 percent over the $946 million reported in the fourth quarter of 2003.
The fourth quarter turned profitable for Caesars, with the company earning a net income of $20 million, or 6 cents per diluted share, compared with a loss of $17 million, or a loss of 28 cents per share, in fourth quarter of 2003.
For the year, Caesars earned 69 cents per diluted share, up from 42 cents per diluted share in 2003.
Analysts surveyed by Thomson First Call had forecast full-year earnings of 71 cents per share for the year.
The company reported net revenues of $4.21 billion in 2004, a 6.7 percent increase over 2003′s net revenues of $3.95 billion.
During a Thursday conference call, Caesars executives painted a rosy picture of the company’s future earnings as it nears completion of its $9.4 billion buyout by Harrah’s Entertainment. Executives said they wouldn’t discuss the transaction during the call and deflected all questions.
However, Caesars announced its shareholders would vote on the transaction during a special stockholders meeting on March 11. The companies hope to close the transaction by the end of June.
The results also included expenses of $16 million related to the acquisition by Harrah’s.
JP Morgan gaming analyst Harry Curtis said in an investor’s note that Caesars results will give a boost to Harrah’s. Curtis said Harrah’s should improve cash flow at the Caesars-controlled properties.
“We believe flow through under Harrah’s management can improve as the company focuses on implementing slot marketing programs as well as rationalizing costs,” Curtis wrote.
Caesars stock was relatively untouched Thursday, closing at $20.35, up 6 cents or 0.3 percent. Harrah’s shares fell 35 cents, or 0.52 percent, to close at $67.47.
Net revenue of $480 million in the fourth quarter and $1.94 billion for 2004 from Caesars’ six Nevada properties (excluding Caesars Tahoe which the company has agreed to sell for $45 million and was reported as “discontinued operations”) was 46 percent of the company’s overall figure.
Caesars Palace was the company’s driving force as net revenue in the quarter rose 39 percent to $167 million from $120 million in the fourth quarter of 2003. The casino’s gaming win jumped 48 percent, the result of a 9 percent increase in table game volume and a 13 percent increase in slot volume. The property also reported its highest cash room rate in history — $162 per night.
“At Caesars Palace, we are reaping additional and unique benefits from major capital development projects we have completed in the past few years, including The Colosseum and The Roman Plaza at Caesars Palace, and the efficiency-enhancing technology tools we are deploying in our casinos, our hotels, our lounges and our restaurants,” Caesars Entertainment President and Chief Executive Officer Wally Barr said in a statement. “Because of what we have put in place already, along with the planned opening of the new room tower at Caesars Palace, 2005 is looking like a very good year for us.”
Other Caesars Strip properties reported quarter over quarter increases; Paris Las Vegas had net revenues of $104 million in the quarter, up from $98 million the year before; Bally’s Las Vegas had net revenues of $72 million, up from $71 million; and the Flamingo Las Vegas had net revenues of $83 million, up from $72 million the year before.
“The strong performance of our Las Vegas resorts and better-than-expected results in Atlantic City drove record earnings in the fourth quarter,” Barr said. “Las Vegas is one of the hottest tourist destination resorts in the nation right now — and the entire industry is benefiting.”
Net revenues from Caesars Atlantic City properties was $240 million. Barr said the 34-day strike by members of the Local 54 Hotel Employees and Restaurant Employees union probably cost the company $10 million in lost revenue during October.
Find this article at:
http://www.reviewjournal.com/lvrj_home/2005/Feb-11-Fri-2005/business/25846510.html
Comments (1)
That is aswell why louis vuitton accoutrements adore top report. One more, because for louis vuitton handbags , anniversary of them is fabricated by hand, accordingly it banned the assembly speed. Their aegis action aswell embodies the ability of lv handbags .