Published February 04, 2013
Caesars Entertainment (CZR) projected a fourth-quarter loss that exceeds what analysts had been anticipating, citing a revenue decline from Hurricane Sandy.
The casino operator said its loss will likely fall between $452 million and $556 million on revenue of $1.55 billion to $1.58 billion. Wall Street was forecasting a $268 million loss and revenue of $2.11 billion.
Fourth-quarter revenue at Caesars’ Atlantic City, N.J., properties was dragged down by $30 million to $35 million due to the storm, which made landfall in late October. Those properties were closed for five days, while its lone property in Philadelphia had to shut its doors for two days.
Some properties were also damaged by the storm. The company estimated about $1 billion in damages, adding that its covered losses from property damage and business interruption did not exceed its deductible.
Las Vegas-based Caesars also announced that it plans to offer $1.5 billion of seven-year, 9% senior secured notes in a private offering. It said the move will repay certain outstanding term loans.
Caesars, which last saw a profit in late 2009, reported in October a third-quarter loss on higher impairment charges and interest expenses that outweighed improved revenue.
Shares of Caesars were down 13 cents, or 1.66%, to $7.94 a share in early morning trading Monday.