Casino Operators Experience Decline in Profits Compared to Last year

On May 15, 2007, the shares of gambling casino organizations closed lower with Hong Kong based casino organization Melco PBL Entertainment Ltd., announcing a loss in the first quarter of 2007 due to higher operating costs.

Melco stated a total loss of $27.2 million or $0.23 per total share. The losses increased from $7.5 million or $0.15 per share in the same period last year.

Total company operating expenses ballooned to $56.1 million from $15.3 million on amortization expenses, as well as the cost for building the Crown Macau and City of Dreams development plans.

Harrah’s also said that day that they would launch a $704 million worth Margaritaville Casino and Resort located in Biloxi, Mississippi together with songwriter Jimmy Buffett.

Harrah’s further stated that this will be the biggest construction project in Mississippi since the Level 5 Hurricane Katrina devastated the Gulf Coast in 2005. The different casino organization performed that day with different results.

Melco PBL Entertainment slid down to $0.56 or 3.7% and closed at $14.52, while the Las Vegas Sands Corporation, slid to $0.29 to $77.97 and the MGM Mirage Casino slid down to $0.92 to close at $61.26. Harrah’s Entertainment Inc. also declined to $0.07 or $85.49, while Penn National Gaming Inc. slid to $0.14 or $49.66.


22 May, 2007