Gulf Coast resort closures hurt Caesars in Q3

By Danny King
Caesars Entertainment’s third-quarter loss tripled from a year earlier because of impairment charges stemming in part from Gulf Coast resort closures from Hurricane Isaac in August.

Caesars also said damage to its four Atlantic City resorts from Hurricane Sandy earlier this week was minor.

The company's net loss widened to $505.5 million from a $164 million loss a year earlier, as the company took non-cash charges of $419 million.

Of that total, $176 million stemmed from the closure of two Gulf Coast casinos because of Hurricane Isaac. The company also took a $103 impairment charge from its Lake Tahoe-area resorts.

Caesars’ resorts in Las Vegas, which account for about a third of the company’s total revenue, had a 29% drop in operating profit, as revenue was little changed at $735.1 million.

Higher sales from the new Octavius Tower at Caesars Palace were offset by lower occupancy and room rates, which each declined about 2% from a year earlier.

Caesars' revenue companywide was little changed at $2.2 billion.

Follow Danny King on Twitter @dktravelweekly. 
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