Tags: Caesars | Loss | Atlantic-City | Write-Off

Caesars Loss Doubles on Atlantic City Write-Off, Hurricane Sandy

Monday, 25 Feb 2013 05:21 PM

Caesars Entertainment Corp., the largest owner of U.S. casinos, said its fourth-quarter net loss more than doubled to $469.7 million following Hurricane Sandy and a write-off at one Atlantic City property.

The net loss of $3.75 a share compared with a loss of $220.6 million, or $1.76, a year earlier, the Las Vegas-based company, constrained by more than $20 billion in debt, said Monday in a statement. Analysts had predicted a loss of $1.73 a share, the average of six estimates compiled by Bloomberg.

Caesars shares tumbled 9 percent to $10.65 in extended trading. The stock rose 1 percent to $11.71 at the close of regular trading in New York.  The shares had risen more than 40 percent this month on pending introduction of online gambling in Nevada and New Jersey, signs of a pickup at Las Vegas casinos and the company’s plans to sell a stake in its online operation, along with two properties.

Property earnings before interest, taxes, depreciation and amortization fell 8.3 percent to $451.9 million. Sales declined 4.3 percent to $2.02 billion, missing estimates of $2.11 billion.

Caesars is controlled by TPG Capital LP and Apollo Global Management Holdings LLC after their 2008 buyout of the company.

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