Shares of Park Place, which recently announced it would change its name to Caesars Entertainment, managed the tiniest of gains, edging up a single cent to close at $8.96 on a generally positive day for the gambling sector.
Las Vegas-based Park Place reported net income of $41 million, or 14 cents per share, down from $96 million, or 31 cents, earned a year ago, but this was in line with the consensus estimate of analyst polled by Thomson First Call.
But factor out a 2002 gain from the sale of an equity interest in an Australian casino and the year-over-year profit decline isn’t so dramatic. As adjusted, Park Place earned 19 cents per share in the year-ago quarter.
Meanwhile, revenue came in at $1.18 billion, down from 1.19 billion in the year-ago period. Earnings before interests, taxes, depreciation and amortization (EBIDTA) were $277 million, down from $310 million.
Park Place (PPE: news, chart, profile) had “a solid recovery from a difficult April — a month impacted by the war in Iraq, SARS fears and the uncertain national economy — with a better than expected May and a steady June,” said CEO Wallace Barr in a statement.
However, while the company’s non-Nevada operations held fairly steady on the quarter, in the West, “we were hurt by a travel slump in April and by low table hold throughout the quarter.”