NEWSBRIEF
BY MARKANDERSON
Harrah's Releases Fourth Quarter Report
February 29, 2022
Harrah's Entertainment recently released their fourth quarter and full year financial results. Financial reports may seem like dry, sterile fare, however traditionally they have been seen as a good indicator of the overall health of the casino industry. If this is the case there could be cause for concern as Harrah's announced a net loss in the fourth quarter of $47.8 million dollars. This is a fairly drastic change compared to the fourth quarter of 2006, where they were able to report a $47.6 million dollar gain. This is no doubt a drastic difference in just a year and one may be tempted to panic at such a disturbing trend, however before doing so a few key factors must be considered.

Harrah's Entertainment is no longer a public company having recently gone through the largest leveraged buy-out ever in the industry. A buy-out that took place during the fourth quarter in question. This buy-out surely affected company profits due to pretax write offs. Also it should be noted that Harrah's recently acquired London Clubs International, Bill's Gambling Hall and Saloon and a golf course in Macau, all of which increased expenses more than the previous year.

Lastly, before prematurely predicting a gloomy future for the poker and casino industry, it may be wise to look at the overall year of 2007, where Harrah's was able to announce an overall net income of $619.4 million dollars.

For story in it's entirety, please visit the Independent Online Poker Authority, PokerNews.com
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