Las Vegas-based Caesars posts heavy losses
Las Vegas-based Caesars Entertainment is pressing ahead with the sale of four casino properties to an affiliate amid a sharp rise in 2013 fourth-quarter losses.
Its deficit reached $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 had 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.
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.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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