Market Commentary and Intraday News
Casino operator Caesars posts wider 2Q loss
291 days ago
(AP:LAS VEGAS) Casino operator Caesars Entertainment Corp. said Monday that its loss widened in the second quarter, driven by hefty charges related to land costs in the Chinese territory of Macau, among other expenses.
The results fell short of Wall Street expectations, and the company's shares fell more than 3 percent in aftermarket trading.
Caesars said its loss swelled to $241.7 million, or $1.93 per share, in the three months ended June 30. That compares with a loss of $155.5 million, or $1.24 per share, in the same period last year.
Analysts had anticipated, on average, a loss of 82 cents per share, according to FactSet.
The latest results included $134 million in non-cash charges, including $101 million stemming from a land concession in Macau. The charges reduced Caesars' income from operations by nearly 65 percent to $81.8 million.
The company's revenue rose 2 percent to $2.17 billion from $2.16 billion. Analysts had forecast revenue of $2.29 billion.
Improved growth in its international and online operations helped lift revenue for the casino operator. That offset lower casino revenue in several U.S. regions, primarily Atlantic City.
The company noted that casino revenue deteriorated between the first and second quarter as the economy softened.
"After a strong first quarter, difficult economic conditions led to lower visitation in several regions, impacting our core operating results in the second quarter," said Gary Loveman, Caesars' chairman, chief executive and president.
There were 1.6 percent fewer trips to Caesars' casinos during the quarter than in the same period last year, and spending per trip fell 1.9 percent.
Shares ended regular trading up 15 cents at $8.47. The stock slid 28 cents, or 3.3 percent, to $8.19 in afterhours trading.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.