Posted at 11:32 a.m., Tuesday, August 7, 2007
Las Vegas operations help Harrah's profit surge
Advertiser Staff
LAS VEGAS— Harrah's Entertainment Inc., which is being taken private in a $17.1 billion deal, said today its second-quarter profit surged 85 percent, as visitor volume powered growth in Las Vegas and a new race track casino in Pennsylvania offset weak results in Atlantic City, N.J.The world's largest casino company posted an increase in net profit to $237.5 million, or $1.25 per share, versus $128.6 million, or 69 cents per share, in the prior-year period.Income from continuing operations rose to $195.5 million, or $1.03 per share, compared with $128.7 million, or 69 cents per share, a year earlier.
Adjusted earnings from continuing operations were 96 cents per share, versus 95 cents per share a year ago.Analysts surveyed by Thomson Financial forecast net income of 98 cents per share.Revenue grew 14 percent to $2.7 billion, above analysts' expectations of $2.59 billion.
CIBC World Markets analyst David Katz called the results solid.Harrah's share price, tied strongly to the $90-per-share offer from Apollo Management Group and Texas Pacific Group that shareholders approved in April, rose 14 cents to $84.14 yesterday. The deal is expected to close late this year or in early 2008.
In Las Vegas, where Harrah's owns properties like Caesars Palace and Bally's and Rio, revenue climbed 14.8 percent from the same quarter a year ago to $922.5 million, and regional operating profits grew 13.9 percent to $238.8 million.
