Economic slowdown hits US casinos
29th February, 2008
Casinos in the US are showing signs of feeling the ongoing economic strain as some of the major players announced weaker than expected results this week.
Boyd Gaming revealed a decline in quarterly profit, with net income for the fourth quarter at $31.2 million (£15.7 million) compared to $56.3 million a year before, 35 cents per share down from 64 cents.
Net revenues declined 8.1 per cent, which Boyd put down to inclement weather, disrupted construction work and new competition.
Las Vegas operator Harrah's Entertainment reported a fourth quarter loss of $47.8 million, compared to net income of $47.6 million, due to impairment charges.
Revenue at the company, acquired in January by Apollo Global Management and TPG Capital, rose by eight per cent to £2.6 billion from $2.4 billion in the same quarter of 2006.
"Competitive pressures in several markets do not appear likely to lessen in the near term," Oppenheimer analyst David Katz told Reuters.
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