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| Drop in walk-in customers hits Harrah痴 |
7/17/2001 Harrah's expects reduced second quarter earnings The economic downturn has adversely affected Harrah's Entertainment Inc. earnings for the past quarter. The company reported that the some of its properties particularly in the Nevada Reno/Lake Tahoe area has been affected, prompting it to scale back its second quarter earnings expectations. Now Harrah's expects to report second-quarter earnings of 46 cents to 50 cents per share - well below the estimate of 55 cents per share among the 18 analysts polled by Thomson Financial/First Call. In April, the casino "win" - the amount of money casinos kept after all bets were paid - dropped about 10 percent in those areas whereas, revenues were down only 0.2 percent in Las Vegas and most southern Nevada gaming centers. Competitor MGM Mirage is still sitting comfortably with their earning estimate, issued in April. However, it appears Harrah?s is not going to take it lying down. Said Gary Loveman, Harrah's president and chief operating officer, "To counter the drop in retail play, we developed new marketing plans to stimulate the retail segment of our businesses." These plans were implemented at the end of June so now Harrah?s needs to wait to judge their effectiveness. |
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