Caesars posts huge Q4 loss
Amid a sharp rise in 2013 fourth-quarter losses, Caesars Entertainment is pressing ahead with the sale of four casino properties to an affiliate.
It posted Q4 losses of $1.75 billion, three times greater than the same period in 2012.
In order to service its debt, the company agreed to the $2.2 billion sale of Bally’s Las Vegas, The Cromwell, The Quad Resort & Casino and Harrah’s New Orleans to subsidiary Caesars Growth Partners.
Caesars CEO Gary Loveman said the company have faced a challenging business environment since the onset of global financial crisis.
"Today’s asset sales mark an important step in our ongoing efforts to repair the balance sheet," he said.
He cited "deteriorating market conditions in Atlantic City" as the primary reason for the losses.
Last year Loveman admitted that the company had "a very complicated capital structure," and will not file for Chapter 11 bankruptcy.
However net revenues at its Las Vegas operations improved 7.6% to $799.4 million in the quarter and management remains "optimistic about the prospects for Las Vegas."
Although bigger-than-expected, the losses were no great surprise to investors.
Caesars forecast heavy losses when it first mooted the sell-off of the four casinos last week and has not posted a profit since 2009.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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