Revenue jumps for Harrah’s

Harrah’s Entertainment experienced 85 percent income growth in the second quarter, pushed by strong visitor numbers in the Las Vegas market.

However, Atlantic City continues to drag down the company’s bottom line. Properties there posted double-digit decreases in operational income and cash flow.

“Harrah’s second-quarter results confirm continued strength in the Las Vegas market and a competitive environment in Atlantic City,” said CIBC World Markets gaming analyst David Katz in a note to investors.

The earnings were issued in a statement Tuesday.

The gaming company, which is being bought for $17.1 billion by a joint-venture partnership between private equity firms Texas Pacific Group and Apollo Management, did not hold a conference call with investors.

Harrah’s reported a net income of $237.5 million, or $1.25 per share, in the three months ended June 30. A year ago, the company reported $128.6 million, or 69 cents per share.

Revenue rose 13.8 percent to $2.7 billion from $2.4 billion.

Analysts polled by Thomson Financial expected earnings of 98 cents per share on revenue of $2.59 billion.

Company cash flow, defined as earnings before interest, taxes, depreciation and amortization, increased 6.1 percent to $713.9 million for the quarter.

Cash flow for the Las Vegas properties increased 15.5 percent to $306.5 million for the quarter and increased 9.1 percent to $604.1 million for the year.

Harrah’s owns and operates Caesars Palace, Rio, Paris Las Vegas, Bally’s, Bill’s, Flamingo, Imperial Palace and Harrah’s.

The strong local cash flow is in stark contrast to the growing woes of the Atlantic City region.

The five area properties’ cash flow decreased 15.6 percent to $143.4 for the quarter and decreased 11 percent to $276.2 million for the year.

Atlantic City revenues increased 13.7 percent to $592.6 million for the quarter and increased 12.6 percent to $1.1 billion for the year.

The company blamed the decrease on increased slot competition in New York and Pennsylvania, a new smoking ban implemented in April and increased marketing and promotional program costs.

The decline surprised analyst Joseph Greff of Bear Stearns, who had expected cash flow closer to $167 million.

Harrah’s also struggled in Nevada outside the Las Vegas market due to a weak ski season and northern wildfires.

Revenues for properties in Reno, Lake Tahoe and Laughlin decreased 2.7 percent to $154.2 million for the quarter. Cash flow decreased 11.5 percent to $34.7 million for the quarter and had a $10.6 percent decrease to $67.5 million for the year.

Weak cash flow outside Las Vegas held the company to a 3.6 percent increase to $1.4 billion for 2007.

Harrah’s has two large projects under construction: the $704 million Margaritaville Casino and Resort in Biloxi, Miss., and the $1 billion expansion at Caesars Palace.

The buyout is scheduled to close in late 2007 or early 2008 pending approval from state and federal regulators, including gaming officials in various jurisdictions.

Shareholders approved the deal in April.

The stock price will continue to be tied to the buyout offer of $90 per share, not earnings reports and other market factors.

Harrah’s Entertainment shares rose 14 cents, or 0.17 percent, Tuesday to close at $84.14 on the New York Stock Exchange.

Auto repair shortage affects Las Vegas
The auto repair industry is facing a national shortage of workers.
Franchising industry booming
Experts say Las Vegas is a hotbed for the franchise industry.
Africa Love owner talks about his store in Las Vegas
Mara Diakhate, owner of Africa Love, gift and decor store, talks about his store in Las Vegas. (Bizuayehu Tesfaye/ Las Vegas Review-Journal) @bizutesfaye
Developer gets approval to build homes at Bonnie Springs
The Clark County Planning Commission has approved a plan to build 20 homes on the site of Bonnie Springs Ranch. (Michael Quine/Las Vegas Review-Journal)
Dig This opens new location In Las Vegas
Remember when you were a kid and played with construction toys in the sand box? Dig This Las Vegas has the same idea, except instead of toy bulldozers, you get to play with the real thing. (Mat Luschek/Review-Journal)
Town Square developer Jim Stuart building again in Las Vegas
Las Vegas’ real estate bubble took developers on a wild ride, something Jim Stuart knows all too well. (Las Vegas Review-Journal)
Salon opens at Veterans Village
T.H.E. Salon, owned by Nicole Christie, celebrated their opening at the Veterans Village with a ribbon cutting ceremony.
Southwest Airlines considering Las Vegas-Hawaii flights
Southwest Airlines CEO Gary Kelly says the airline is "very focused" on Hawaii. Hawaiians have a strong presence in Las Vegas.The city’s unofficial status is “Hawaii’s ninth island.” In 2018, at least 2,958 people from Hawaii moved to Nevada. Of those, 88.7 percent moved into Clark County, according to driver license surrender data. According to the Las Vegas Convention and Visitors Authority, 310,249 people came to Las Vegas from Hawaii in 2018.
Fewer Nevadans are celebrating Valentine's Day
Fewer Nevadans are celebrating Valentine's Day. About 1.2 million Nevadans are expected to celebrate this year, a 5 percent drop from 2018. A growing number of people consider Valentine’s Day over-commercialized. Others weren’t interested in the holiday or had nobody to celebrate with. But spending is expected to rise. Those who do celebrate are buying for more people. The average American is expected to spend about $162 this year for Valentine’s Day, a 57 percent jump from a decade prior. Katherine Cullen, director of industry and consumer insights at NRF
Foreclosures of mansions in Las Vegas
Las Vegas was ground zero for America's foreclosure crisis after the housing bubble burst. (Eli Segall/Las Vegas Review-Journal)
Rick Helfenbein talks about the impact of tariffs on the clothing industry
MAGIC fashion convention showcases men's clothing trends
The MAGIC fashion convention has come to Las Vegas at the Mandalay Bay Convention Center to showcase some of the hottest clothing trends for men. (Nathan Asselin/Las Vegas Review-Journal)
Allegiant Air flight attendants learn how to handle a water landing
Field instructor Ashleigh Markel talks about training prospective flight attendants for Allegiant Air getting live training with a raft for a water landing at the Heritage Park Aquatic Complex in Henderson on Monday. (John Hornberg/Las Vegas Review-Journal)
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery talks about Las Vegas return
Michael Feighery, CEO of Smith & Wollensky Restaurant Group, discusses the restaurant's upcoming return to the Las Vegas Strip.
Apartments to Come to Hughes Center
Developer Eric Cohen discusses his current building project at the Hughes Center office park in Las Vegas, Thursday, Jan. 31, 2019. Caroline Brehman/Las Vegas Review-Journal
Stratosphere to rebrand to The STRAT
The Stratosphere, a 1,150-foot-tall property in Las Vegas will be renamed The STRAT Hotel, Casino and Skypod.
Local designers’ picks for the Las Vegas Market
The trends that local interior designers are noticing at the Las Vegas Market this year. (Rachel Aston/Las Vegas Review-Journal)
Trends in bath products at Las Vegas Market
Camille Herd, the showroom manager for European Bath Kitchen Tile & Stone, talks about the popularity of free-standing bath tubs. (Rachel Aston/Las Vegas Review-Journal) @rookie__rae
Kitchen trends at Las Vegas Winter Market
Las Vegas Winter Market displayed kitchen trends that mirror common dining accessories at Strip eateries. (Rachel Aston/Las Vegas Review-Journal) @rookie__rae
Emerging trends in gifts at Las Vegas Market
Julie Smith Vincenti, curator for the First Look showroom tour on gifts and lifestyle, talks about the emerging trends in those categories for this season. (Rachel Aston/Las Vegas Review-Journal) @rookie__rae
Las Vegas house prices are rising
Southern Nevada home prices were up 12 percent year-over-year in November.
Caesars Republic Scottsdale
Caesars Entertainment Corp. is building its first non-gaming hotel in the United States in Scottsdale, Arizona. (Caesars Entertainment Corp.)
Interior designer Mikel Welch talks about trends for Las Vegas Market
Interior designer Mikel Welch, who also is the on-camera designer for TLC’s Trading Spaces, discusses the trends he sees for the 2019 Las Vegas Winter Market. (Rachel Aston/Las Vegas Review-Journal) @rookie__rae
SHOT Show 2019: MEGGITT Virtual Training
MEGGIT showcases its virtual training system at SHOT Show 2019 in Las Vegas.
MGM delivers 700 meals to TSA workers at McCarran
Chefs at Garde Manger at Mandalay Bay provided 700 meals to federal employees who are affected by the government shutdown. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
SHOT Show 2019: A "nonsemi-automatic” weapon
Brandon Dunham of Nevada-based Franklin Armory show off the company’s new rifle prototype it calls a “nonsemi-automatic” weapon. The gun does not use a gas system to fire.
Las Vegas-based concrete repair company knows how to beat the heat
ART Concrete Solutions, a Las Vegas concrete-repair firm, addresses the challenges of construction in the extreme heat and sun of Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas based company brings color to concrete in the desert heat
Semco Modern Seamless Surface, a Las Vegas surface engineering company, knows how to put color in concrete construction in the Vegas heat. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
News Headlines
Home Front Page Footer Listing