Harrah's Entertainment Swings To 3Q Loss


(AP (file))

LAS VEGAS (AP) - Harrah's Entertainment Inc. on Friday reported a loss in the third quarter compared to a profit a year earlier, reflecting reduced spending by consumers in its Las Vegas casinos and closing of several Gulf Coast properties during Hurricane Ike.

The privately held hotel and casino company lost $129.7 million in the quarter, compared with a profit of $244.4 million in the July to September quarter in 2007.

Harrah's, which operates under the Harrah's, Caesars and Horseshoe names, said income from operations plunged 39 percent to $349.6 million. Revenue fell 7 percent to $2.65 billion.

The quarter also saw interest expenses more than double to $533.4 million.

In Las Vegas, the company's properties took in $796.8 million in revenue, down 11.5 percent from a year ago. Income from operations
was down by 27 percent to $155.4 million.

In Atlantic City, Harrah's said revenue fell 2.4 percent to $655.1 million while operating income declined by 12 percent to $123.5 million.

The Louisiana-Missouri properties had a 6 percent drop in revenue to $368.2 million and profit plunged by 60 percent to $49.2 million. Iowa and Missouri was down 4.3 percent to $198 million in revenue but operating profit rose by 5 percent to $41.8 million.

Revenue from its Illinois and Indiana properties was down 8 percent to $301.9 million and operating income dropped 63 percent to $21.5 million.

Harrah's was taken private in January by Apollo Global Management LLC and TPG Capital for $30.7 billion, including the assumption of $12.4 billion of debt.

The company still reports financial results because it has publicly traded bonds.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

AP-NY-11-07-08 1555EST

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