VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
Issue link: https://www.ifoldsflip.com/i/93026
CAESARS POSTS QUARTERLY LOSS OF HALF A BILLION IN BUSINESS GAMING By Steve Green senior staff writer C quarter. Despite aesars Entertainment Corp. said it lost a hefty $505.5 million in the third quarter, a loss wider than the $164 mil- lion lost the same period last year. Much of the casino operator's loss was on paper. Its expenses in the quarter included one-time charges totaling $419 million to write down the value of certain assets as required by accounting rules. These write-downs, and on paper, included $247 million related to goodwill $127 million for trademarks. If a company determines million, up 0.3 percent. Caesars said that assets like these will produce less income in the future than previously believed, their value has to be written down and the amount written down is an operating expense. increased The results were also affected by interest expenses certain tax provisions. With net revenue and increasing 0.4 percent to $2.198 billion, the loss per share amounted to $4.03 vs. the $1.31 per share lost in the year-ago Caesars said hotel revenue in Las Vegas was "relatively flat" compared with 2011. The local Caesars hotels, as a group, saw an overall decrease in money into various expansions and renovations, including in Las Vegas, casino revenue increased but food and beverage revenue fell. Visitation levels were flat, falling 0.4 percent, but spending per trip was up 7.8 percent, thanks to strength in the international high-end segment. Hotel at Caesars Palace, rebranding the Imperial Palace as the Quad, the $550 million Project Linq, renovating and repositioning Bill's Gamblin' Hall & Saloon for $185 million and adding a $140 million convention center in Atlantic City. At the same time, it's been expanding or looking to expand in online gaming and in physical places like Ohio, average daily room rates from $89 in Maryland and Massachusetts. the Nobu companies, means earnings before interest, taxes, amortization. The company's Las Vegas resorts, including Caesars Hollywood produced Palace, and net the revenue $735.1 Planet Flamingo, of extending debt maturities and the planned sale of the Harrah's St. Louis casino for $610 million. The company plans to plow depreciation and the large loss, Caesars indicated operating results improved companywide as EBITDA at metric for property level grew 3 percent $512.2 million. EBITDA, a common financial the to gaming about Caesars' ability to service its $19.96 billion in debt, but CEO Gary Loveman said in a statement that the company made significant progress in the quarter "on a strategy designed to position our company for future growth." This included refinancing debt, 2011 to $87 in 2012. Analysts have been concerned GAMING MGM REPORTS BIG LOSS IN 3RD QUARTER By Steve Green senior staff writer M GM Resorts International reported a wider third quarter loss Wednesday, saying that slow economic conditions this summer hurt business at its Las Ve- gas casino resorts. The company lost $181.2 million, or 37 cents per share, versus a loss in 2011's third quarter of $123.8 million, or 25 cents per share. Net revenue edged up 1 percent to $2.3 billion thanks to a 7 percent in- crease in sales at subsidiary MGM China in Macau. Of the $2.3 billion, $1.5 billion came from MGM Resorts' wholly owned domestic resorts, down 2 percent. On the Strip, the company's half- owned, $8.5 billion CityCenter complex continued to improve its financial per- formance. It produced adjusted EBITDA from resort operations of $59 million, up 18 percent. EBITDA is a profitability measure widely used in the gaming in- dustry meaning earnings before inter- est, taxes, depreciation and amortiza- tion. HOLIDAY PARTIES CORPORATE FUNCTIONS MEETINGS Contact Natalie: 702-632-6470 natalieg@titanbranding.com But the company's hotel revenue fell 3 percent, mainly because of a 2 per- cent decrease in revenue per available room at MGM Resorts' wholly-owned Strip resorts. At these properties, including the Mi- rage, Bellagio, Mandalay Bay and the MGM Grand, room occupancy slipped 3 percentage points to 92 percent while the average daily rate remained steady at $124. A key positive for the company in the third quarter was that casino revenue from its U.S. resorts increased 2 per- cent. Despite the slowdown affecting hotel revenue, slot revenue increased 1 percent. information please call 990-2443 or visit For advertising The Data or The Docket research@vegasinc.com or call 259-4197 Send your info for 12 Tune in at 7 a.m. Mondays on KUNV 91.5 for the latest in gaming, tourism and real estate news. VISIT VEGASINC.COM FOR PAST EPISODES AND MORE BUSINESS NEWS. During a conference call with ana- lysts, MGM Resorts officials said that even considering the U.S. economic problems caused by Hurricane Sandy, they're expecting business to continue improving during the fourth quarter. "Visitation is up and revenue per oc- cupied room has been moving up," CEO Jim Murren said. The company experienced what executives called a small number of hotel room cancellations related to the East Coast storm, amounting to about 4,000 room nights and about $1 million in revenue. The cancellations came amid a busy convention week in Las Vegas with the SEMA automotive show in town. VEGASINC RADIO 07515_VINC_RadioHouse_AD_c2.indd 1 8/29/12 9:10 AM | 12 NOVEMBER 2012 |