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LVRJ - Park Place Entertainment profits slide
vp_FREE wrote:
This article is a unnecessarily negatively slanted. The leadoff notes
a 60% decline in net income for 2nd quarter. What's not mentioned is
that the previous quarter includes a one-time gain from the sale of an
Australian casino operation interest.
Exclude that gain, to compare "apples to apples", and the decline is
28% -- $41 mil. in the current quarter vs. $57 mil. in the prior year.
What's particularly notable is that the under-performance in the
Western Region is heavily concentrated at Paris, accounting for half
of the current quarter's decline in operating income.
The other two flagship LV properties, Caesars and Flamingo have lagged
modestly but continue strong. The rest of their weaker Western
properties (incl. LVH) continue to flounder.
Should their AC properties ultimately succumb to competitive pressures
from Borgata, then the skies darken considerably.
- Harry
(Information extracted from financial statements reported at
edgar-online.com)