“Our second-quarter results clearly indicate that the organizational and strategic changes we’ve made to meet the challenges of the recession are improving our performance and paving the way for accelerated growth when the economy improves,” said Gary Loveman, chairman, chief executive officer and president of Caesars Entertainment Corporation.
Trips by rated players fell 9.2% overall, reflecting a 0.2% rise in the Las Vegas region (Bally’s Las Vegas, Bill’s Gamblin’ Hall & Saloon, Caesars Palace, Flamingo Las Vegas, Harrah’s Las Vegas, Imperial Palace, Paris Las Vegas, Planet Hollywood Resort & Casino and Rio All Suite Hotel & Casino), a 4.1% decline in Atlantic City Region (Bally’s Atlantic City, Caesars Atlantic City, Harrah’s Atlantic City, Harrah’s Chester and Showboat Atlantic City) and a 15% drop in the rest of the U.S. Overall spending per rated-player trip increased 5.6%. Cash average daily room rates rose 5.3% while occupancy increased 3.3%.
Flooding of the Ohio and Mississippi Rivers caused temporary closures of Horseshoe Southern Indiana, Horseshoe Tunica, Tunica Roadhouse, Harrah’s Tunica and Harrah’s Metropolis. Even when some properties were closed longer than others; all properties were reopened as of May 27, 2011. While the closures reduced the revenues in the affected regions, the impact on the overall results does not result in a significant loss for the company. Costs incurred during the closures, as well as other expenses in connection with restoring the affected properties, will be covered by third-party insurance providers. The Company also expects to receive insurance recoveries for lost profits through business-interruption insurance, which will be added as income in the period in which settlements are finalized.
Caesars Entertainment, the world’s largest casino company, operates more than 50 casinos in 12 U.S. states mostly under the Caesars, Harrah’s and Horseshoe brands.