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Harrah’s Entertainment Posts Loss For First Quarter

Sunday 11th May 2008

While casino giant Harrah's Entertainment may be THE name in the industry it seems that this year's highly controversial $17 billion buyout may have come at the wrong time. The heavily leveraged buyout seems to have been completed at a time when the industry has taken a turn for the worse, when corporate funding is proving difficult and the world economy is declining.

Figures posted yesterday show a loss for the first quarter of some $187 million compared to a profit of $185 million for the same period 12 months earlier. This loss was accompanied by news that revenues for the period fell 2.1% to $2.6 billion showing that the industry seems to be suffering from falling attendance numbers.

Harrah's Entertainment was acquired by the buy-out specialists Apollo Management Group LP and TPG Inc after an agreement which was initially confirmed back in 2006. It has taken nearly 2 years for the regulatory clearance to be confirmed, during which time the outlook for the industry has changed dramatically. Did they buy the company at the peak of the market? Did they over pay for the worlds leading casino group?

Time will tell but life is tough in the casino industry at the moment.....



Source: Gambling.co.uk News