Harrah's Posts $1.6B Loss

LAS VEGAS-Harrah’s Entertainment, the largest casino operator in the world said Tuesday it lost $1.6 billion during the third quarter of 2009, mostly due to the acknowledgement of a $1.33-billion drop in the fair value of its assets. The locally based and now privately held casino operator lost less than 10% of that amount in the same year-earlier period.

Harrah’s operates more than 50 casinos around the world and seven on the Las Vegas Strip. In addition to a huge debt load–$19 billion as of June–related to its being taken private, the operator is suffering through the general economic recession, which has reduced travel and related spending, and, specifically in Las Vegas, an oversupply of hotel rooms and casino floor area.

Compared to the same year-earlier period, Harrah’s in the third quarter generated lower revenues in every market in which it operates. Combined revenue was $2.28 billion, down 13.7% from $2.65 billion. CEO Gary Loveman offered up only “lower spending by consumers” as an explanation for the lower revenues.