Earnings by Ray Poirier | Gamblers always felt the house couldn’t lose but that idea has been trashed as America’s gaming companies report their fiscal results for the third quarter.
While MGM MIRAGE Inc. (MGM), which dominates the Las Vegas Strip in numbers of properties owned, did announce a quarterly profit of $61 million, about half what it reported a year earlier, Harrah’s Entertainment Inc., now a privately held company that operates a number of Las Vegas Strip properties, wasn’t as lucky.
Harrah’s said it had a third-quarter net loss of $129.7 million compared to a profit of $244.4 million a year earlier. As for its Las Vegas properties, the company said revenues were $796.8 million, down 11% from last year. But, income from operations declined 27% to $155.4 million.
CEO Gary Loveman explained, "The economic upheaval weighing on the country continued to impact our results. While we’re hopeful the federal government’s recent actions to restore order to the financial markets may lead to an eventual economic recovery, there is no certainty as to its timing."
Some companies were looking toward Washington, D.C., where the new administration is calling for a new stimulus package "sooner rather than later."
Other gaming companies that reported their quarterly experience last week were:
Station Casinos Inc., now a privately held company, with a net loss of $23.4 million on revenues of $317 million. That was down from last year’s $354.1 million.
Ameristar Casinos Inc. (ASCA) with earnings of $14.3 million, or $0.25 per share, down from last year’s $20 million, or $0.34 per share. The company said it did not plan to pay a dividend in the fourth quarter.
Landry’s Restaurants Inc. (LNY) with a loss of $17.1 million or $1.12 per share compared with a loss of $4.3 million or $0.25 last year. The loss was exacerbated by the damage caused by Hurricane Ike.
Trump Entertainment Resorts Inc. (TRMP) with a net loss of $139.1 million or $4.39 per share compared to last year’s profit of $6.6 million or $0.21 per share.
Pinnacle Entertainment Inc. (PNK) with a net loss of $11.8 million or $0.20 per share compared to last year’s net profit of $5 million or $0.08 per share. Because of the economic conditions, the company said it would place an "indefinite hold" on its $2 billion Atlantic City development.
International Game Technology (IGT) with a profit of $52.1 million or $0.18 per share compared with last year’s $122.6 million or $0.38 per share.
MTR Gaming Group (MNTG) with a loss of $8.2 million or $0.30 per share compared to a loss of $2.8 million or $0.30 per share last year.
Scientific Games Corp. (SGMS) with a profit of $25.4 million or $0.27 per share compared to a loss of $2.9 million or $0.03 per share in 2007.
Churchill Downs Inc. (CHDN) with a profit of $2.5 million or $0.18 per share compared to last year’s $818,000 or $0.06 per share.
Bally Technologies Inc. (BYI) with a profit of $30.3 million or $0.52 per share compared with last year’s $21.3 million or $0.37 per share.