Harrah’s Entertainment reports record second-quarter results

05.08.2005, Lesen Sie hier den Bericht über «Harrah’s Entertainment reports record second-quarter results».

Revenues 41.5% up, to us$ 1.47 billion

(US).- Harrah’s Entertainment, Inc. today reported record second-quarter revenues of us$ 1.47 billion, up 41.5 % from revenues of us$ 1.04 billion in the 2004 second quarter. Property Earnings Before Interest, Taxes, Depreciation and Amortization (Property EBITDA) rose 41.5 % in the second quarter to a record us$ 402.5 million from Property EBITDA of us$ 284.4 million in the year- earlier period.


"We achieved our sixth consecutive quarter of record results, " stated Harrah’s CEO, Gary Loveman.

Property EBITDA and Adjusted EPS are not Generally Accepted Accounting Principles (GAAP) measurements but are commonly used in the gaming industry as measures of performance and as a basis for valuation of gaming companies.

Second-quarter income from operations rose 18.1 % to a record us$ 226.8 million from us$ 192.0 million in the year-earlier quarter. Second-quarter net income was a record us$ 105.8 million, up 17.3 % from us$ 90.2 million in the 2004 second quarter. Second-quarter results included 17 days of contributions from Caesars Entertainment, Inc., which was acquired by Harrah’s Entertainment on June 13, 2005.

“We achieved our sixth consecutive quarter of record results and posted the highest same-store sales growth in nearly five years, both while completing the largest acquisition in gaming history,” said Gary Loveman, Harrah’s Entertainment’s chairman, chief executive officer and president. “Our ability to continue generating such positive operating momentum is a tribute not only to Harrah’s technological and marketing capabilities, but also to the skill and dedication of a management team and employees who deliver the great service that builds lasting customer loyalty.”

Second-quarter 2005 same-store revenues increased 8.9 % over the year-ago period. Cross-market play – gaming by customers at Harrah’s properties other than their “home” casino – rose 17.7 % from the second quarter of 2004. Tracked play – gaming by customers using the company’s Total Rewards player card – increased 12.9 % from the year-ago second quarter.

“Total Rewards continued to drive organic growth across the company, as we posted quarterly same- store sales gains for the 25th time in 26 quarters,” Loveman said. “This track record of consistent growth illustrates the tremendous potential of putting Total Rewards to work in our newly acquired network of properties.”

Among the second-quarter highlights:

Harrah’s Entertainment completed its us$ 9 billion acquisition of Caesars Entertainment, Inc. on June 13, creating the world’s largest provider of branded casino entertainment. The acquisition added 18 casino properties in four states and two foreign countries to Harrah’s portfolio, giving the company a total of 43 properties in the United States, Canada and Uruguay.

Harrah’s completed the sale of Harrah’s East Chicago and Harrah’s Tunica to an affiliate of Colony Capital, LLC. Colony paid Harrah’s and Caesars – which sold Bally’s Tunica and the Atlantic City Hilton – a total of us$ 1.24 billion for the four properties. Harrah’s used its share of the net proceeds to pay down debt.

Harrah’s Entertainment’s properties received 728 awards, including 313 first-place finishes, in Casino Player magazine’s Best of Gaming Awards, the magazine’s annual poll of gaming customers across the country. Separately, the Caesars properties received 62 first-place honors and 141 total awards. Excluding the Caesars awards, Harrah’s led the competition for the sixth straight year, posting a 24 % increase in total awards and a 23 percent improvement in first-place finishes.

The Rio hosted the 36th annual World Series of Poker from June 2 to July 15. The event was the largest poker tournament in history, with more than 32,000 paid tournament registrations and a prize pool of more than $106 million – more than double the size of the 2004 World Series of Poker. Joseph Hachem of Melbourne, Australia, won the World Series of Poker Championship event on July 16, besting 5,618 other players to claim a record cash prize of us$ 7.5 million.

“Since completing the Caesars acquisition just six weeks ago, we’ve gained a greater appreciation of the cultural similarity between our two companies,” Loveman said. “Since we announced the agreement to acquire Caesars a year ago, we’ve also seen very positive momentum developing at Caesars properties where capital improvements have begun generating strong operating results. We are more confident than ever that we will realize tremendous value by providing Caesars’ management and employees with the tools and capabilities that have enabled Harrah’s to deliver sustainable long-term growth.”

“The just completed 2005 World Series of Poker showed that the WSOP has become one of the world’s premier sporting events, drawing more than 600 journalists and 32,000 registrants from around the globe,” Loveman said. “The event generated invaluable worldwide publicity for our company and introduced our brands to millions of potential new customers. It also had notable financial benefits, as casino play rose markedly at the Rio during the tournament’s six-week run. We will continue expanding this powerful brand into new markets and in new directions in the months and years ahead,” Harrah’s president concluded.

Über Harrah's Las Vegas Hotel and Casino:

Das Casino gehört zu Caesars Entertainment. Caesars Entertainment Inc. wurde 1937 als Harrah's gegründet und wurde 2010 in Caesars Entertainment umbenannt. Besitzer sind die Investment-Firmen Apollo Global Management, TPG Capital und The Blackstone Group.

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