Harrah's Entertainment Inc., the No. 2 U.S. casino operator, has posted a lower fourth-quarter profit due to higher gaming taxes and costs of developing new casinos.
Net income fell to $35.4 million, or 32 cents per share, from $53.9 million, or 48 cents per share, a year earlier. Excluding one-time items such as preopening costs and debt payoffs, earnings were 50 cents per share, below Wall Street's average estimate of 53 cents, according to Reuters Research, a unit of Reuters Group Plc.
Revenue rose to $1.04 billion from $1.01 billion a year earlier.
Harrah's plans to complete the acquisition of Horseshoe Gaming Holding Corp. and its three casinos this year, and continues to expand existing properties in New Orleans, St. Louis, North Carolina and southern California.
The casino operator also plans to expand into the UK regional casino market. The cost of launching a new subscription-based online gaming Web site in Britain also impacted fourth-quarter earnings, Harrah's said in a statement.
Harrah's on Wednesday declared a regular quarterly dividend of 30 cents a share, payable on Feb. 25, to shareholders of record on Feb. 11.
The Las Vegas-based company is expanding through purchases of new casinos, such as the Horseshoe brand, as well as bidding for new contracts as states adopt gambling, often to help close budget gaps.
Harrah's is also trying to attract smaller gamblers in regional casinos by allowing them to build up "reward credits" over time.
|
