Vegas drags down Harrah's revenues
Harrah’s Entertainment saw its revenues fall 12.7 percent in the second quarter to $2.27 billion, mostly on lower results from Las Vegas, which accounts for more than one-third of the company’s business.
Revenues from the Las Vegas Strip casinos dropped 19.2 percent and were down 19.8 percent in the first half, resulting in a 26.5 percent decline in pre-tax earnings from Vegas in the second quarter and a 27.2 percent decline in the first half. The Vegas casinos recorded a combined $123.3 million loss from operations in the second quarter.
The struggling Vegas market was a major factor in Harrah’s decision to write down the value of goodwill and other assets by $297.1 million in the quarter, which helped slash income from operations company-wide to $6.3 million from $323.1 million last year. For the six months ended June 30, income from operations company-wide was down 59.7 percent to $291.7 million.
Adjusted cash flow for the quarter was $565.6 million, down 10.8 percent.
The company was able to shave more than $3.8 billion from its heavy debt load in the quarter. Harrah’s entered the period with $24.1 billion in long-term debt.