Casino operator Harrah’s Entertainment Inc. posted a fourth-quarter loss this week, citing hurricane-related expenses and costs from writing off a Mississippi property it plans to sell.
But Wall Street had expected the world’s largest gambling company to report an even steeper loss from damage to its Gulf Coast properties, and analysts pointed to success of customer loyalty programs and plans for new casinos in Las Vegas, Spain, Slovenia and the Bahamas. The company operates a casino in Cherokee.
The deficit for the quarter ending Dec. 31 amounted to $142.2 million, or 78 cents per share, compared with income of $76.9 million, or 68 cents, the year before. Without the items and charges, adjusted earnings of 66 cents per share topped the average 56-cent estimate from analysts polled by Thomson Financial.
Quarterly revenue of $2.09 billion was 76 percent higher than $1.19 billion a year earlier, reflecting the June acquisition of rival casino chain Caesars Entertainment and strength in its East and West regions. Analysts expected $2.06 billion in revenue.
For the year, revenue jumped 56 percent, to $7.11 billion from $4.55 billion in 2004. Earnings, however, slid to $236.4 million, or $1.57 per share, from $367.7 million, or $3.26 per share, a year earlier.
Harrah’s said that subject to completion of definitive documentation, it plans to operate a Caesars-branded resort hotel and casino as part of Baha Mar, a 1,000-acre mixed-use project with Baha Mar Resorts and Starwood Hotels & Resorts Worldwide, Inc., in The Bahamas.
The Bahama Journal
