LAS VEGAS — Caesars Entertainment Corp.'s new president and CEO said Tuesday the company is getting savvier at deciding which gamblers get freebies and which don't, helping to boost its profit margins for earnings before costs in the second quarter.
Mark Frissora joined the company in February and officially took the helm in July from Gary Loveman who remains chairman of the board. Frissora said the extra cash generated is likely to be reinvested in improving the casino giant's hotel rooms in Las Vegas, with the tower at Harrah's on the Strip among the first to be fixed-up.
Caesars reported second-quarter net income of $15 million, after reporting a loss in the same period a year earlier.
The company's quarterly earnings no longer include its bankrupt subsidiary Caesars Entertainment Operating Corp., the company's largest division that owns and operates 28 casinos including Caesars Palace on the Las Vegas Strip. That unit filed for Chapter 11 bankruptcy protection in a Chicago court in January in hopes of shedding some $10 billion it had amassed in debt.
On a per-share basis, the Las Vegas-based company said it had net income of 10 cents.
Since the same period last year, the company has fully re-opened its renovated Linq hotel, the former Imperial Palace property, and opened The Cromwell on the Las Vegas Strip and the Horseshoe Baltimore casino in Maryland.
The company said "civil unrest" affected business in Maryland during the protests following the death of Freddie Gray, the black man critically injured in Baltimore police custody.
Caesars officials blamed a smoking ban in New Orleans for causing a 10 percent slide in net revenues.
The casino operator posted revenue of $1.14 billion in the period.
Eric Hession, Caesars' chief financial officer, said hotel revenue rose 10.5 percent at six of its properties due in large part to the company's resort fees tacked on to a hotel guest's nightly stay. Caesars raised its resort fees in January.
Through Tuesday, Caesars shares have declined 66 percent since the beginning of the year. They slipped 14 cents, or 2.6 percent, to $5.20 in aftermarket trading following the release of the earnings report.
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Keywords: Caesars Entertainment, Earnings Report