July 23, 2014
LAS VEGAS (AP) - Analysts say casino operators are likely headed
for dreary quarterly earnings results as the economic downturn and
weakness in major markets such as Las Vegas and Macau continue to
take a toll on performance.
The sector is struggling as consumers pull back on discretionary
spending. In an effort to keep pace, casino operators have cut
jobs, dropped room rates and scaled back or scuttled development
With many casino operators set to report fourth-quarter results
in coming weeks, analysts see little reason to be optimistic.
Goldman Sachs analyst Steven Kent wrote in a recent note to
clients that the only question is how bad the results will be.
Kent fears that heavily discounted rooms on the Las Vegas Strip
may bring in guests but result in a drop in revenue per guest that
won't be offset by cutting costs.
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