Beyond the Sun
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Harrah's Entertainment today reported a 4 percent decline in revenue and a 10 percent decline in property-level earnings before interest, taxes, depreciation and amortization, joining competitors that have been hard hit by the economic downturn.
Chief Executive Gary Loveman said the downturn is as challenging as any he has witnessed in the last decade.
"We are taking the right actions to weather the storm," including reducing expenses, he said. The company also is pushing forward with upgrades at several properties, including the mid-2009 opening of a 665-room tower at Caesars Palace and meeting room expansion at a cost of at least $1 billion.
Revenue at the company's Las Vegas casinos fell 5 percent and earnings before interest, taxes, depreciation and amortization fell 7 percent.
Customers apparently spent less at the company's Las Vegas casinos than those outside of Las Vegas. In Las Vegas, play among VIP and higher-rated gamblers fell 7 percent, while it fell 16 percent among lower-level and unrated players in the second quarter compared with a year ago. Outside Las Vegas, gambling volume declined 5 percent and 9 percent, respectively.
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