he company - which operates more than 50 casinos around the world under the Harrah's, Caesar's and other brands - lost us$ 129.7 million during the same quarter a year earlier. CEO Gary Loveman said in a statement that falling consumer spending was to blame.
The Las Vegas-based company's revenue fell abroad and in every US market where it operates. Overall, it dropped 13.7 % to us$ 2.28 billion from us$ 2.65 billion a year earlier. Harrah's lost nearly us$ 779 million in its home market, its largest, where there were fewer visitors and each spent less than a year earlier.
Its occupancy rate was 90 %, but the struggle to fill the rooms — especially on weekdays with conventioneers and other business travelers — led to rate cuts. Loveman said the company was still working to cut its expenses and debt.
Harrah's did not release a new figure for its long-term debt but reported during the third quarter that it owed us$ 19.3 billion as of June 30. The company told the Securities and Exchange Commission in August that it would owe us$ 661.2 million by the end of 2011.
Harrah's took out a new us$ 1 billion term loan during the third quarter to pay down its existing debt, and it exchanged us$ 45 million in notes due next year and in 2011 for new notes due later. The firm also said it cut its operating expenses for the third quarter by us$ 285.7 million, or 14 %, compared with the previous year.
Harrah's us$ 1.6 billion quarterly loss included a us$ 1.05 billion loss from operations plus the cost of interest expenses and taxes. Harrah's said its operations income would have been us$ 278.4 million if it hadn't written down the value of its assets.