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Trump Entertainment, Ameristar and Others Suffer Losses in Profits for the 1st Quarter of the Year
On May 8th, 2008, Casino operators Trump Entertainment and Ameristar Casino reported significant losses for the first quarter of the year because of the weakening economy and tougher gaming competition. Ameristar Casinos Incorporated changed a year-earlier revenue as it incurred a large expense to scale down the value of a casino facility in Indiana it acquired last year. Other well-known gaming companies also stated a weak 1st quarter earnings in the past two weeks.
MGM Mirage Incorporated, the second biggest casino gaming operator all over the world commented that their quarterly profit slide down by thirty percent as a weak U.S. economy affected customer spending in Las Vegas. Just last week. Las Vegas Sands Corporation, Wynn Resorts Limited and Boyd Gaming Corporation also released disappointing figures. Trump Entertainment Chief Executive Mark Juliano said that they are facing a general bleak outlook because of the weak economy and the non-stop rise of gas prices. Trump Entertainment has posted a net loss of $18.6 million or fifty-nine cents per share, compared with a net loss or $8.1 million or twenty-six cents per share on 2007.
Profits slide down to $227.6 million from $234.3 million. Gaming analysts prediction was a loss of forty-two cents per share on profits of $229.7 million. Trump Entertainment commented that the company's profit was affected by the weakening economy, the competition from Pennsylvania and New York and the partial smoking ban that was imposed in Atlantic City casinos in New Jersey. Trump Entertainment's shares slide down to 9.6% to $2.45 per share.
Ameristar casino reported a loss of $60.9 million or $1.07 per share, compared with a profit of twenty-four million or forty-one cents per share. It operating loss for the first quarter of the year was $77.1 million compared with the company's operating profit of $49.9 million last year. But Ameristar commented that net profit improved to $324.8 million from $259.1 million and its shares improve by five percent to $17.95.
Investors is expected to also keep a close eye on the results of Harrah's Entertainment Incorporated, the biggest gaming company all over the world, which was recently acquired by private equity firms Apollo Global Management LLC and TPG Capital LP.
21 May 2008
News Submitted by:
Lauren Desmond
