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Harrah�s Entertainment; Big Losses from Harrah�s New Orleans and National Airlines |
LAS VEGAS, Jan. 18, 2001 - Harrah�s Entertainment, Inc. (NYSE: HET
- news), said today it expects to report a net loss of $1.36 to $1.40 per
diluted share for the fourth quarter of 2000.
The company said the net loss is due primarily to certain restructuring and other special charges that were recorded in the quarter:
�Due to the expected reduction of losses associated with Harrah�s New Orleans, which assumes a successful reorganization of JCC Holding by March 31, and the expected reduction of losses related to National Airlines, we believe the strong performances of our core Harrah�s brand properties should enable Harrah�s Entertainment to meet or exceed analysts� current consensus estimates for year 2001 earnings per share,� said Phil Satre, Chairman and Chief Executive Officer. �The year 2000 was disappointing for us,� he said. �Stellar operating results at most of our properties were offset by issues in New Orleans, National Airlines and the Rio. But I believe we are about to put those issues behind us. �We are looking at a very stable competitive supply situation in most markets for 2001,� Satre said. �Demand appears to be firm and our consumer marketing-based strategy is firing on all cylinders. I believe Harrah�s has an excellent opportunity to grow revenues and earnings organically by capitalizing on our geographic distribution, brand strategy, Total Rewards player-loyalty program, information technology capabilities and emphasis on customer service. We also are making carefully targeted capital investments at some of our existing locations where we can see the opportunity for appropriate returns. �We believe we are ahead of competing casino operators in using our investment in technology to build strong customer relationships. Aside from weather problems, the fourth-quarter performances at key Harrah�s brand properties provide a compelling example of the power of Total Rewards in convincing customers to consolidate their casino play at our properties,� he said. �The year 2001 will be the first year Total Rewards is integrated into all of our properties, and we expect it will help drive continued same-store sales growth.� Founded more than 60 years ago, Harrah�s Entertainment, Inc. is the most recognized and respected name in the casino-entertainment industry, operating 21 casinos in the United States under the Harrah�s, Showboat, Rio and Players brand names. With a combined database of more than 19 million players, Harrah�s Entertainment is focused on building loyalty and value with its target customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. This release includes �forward-looking statements� intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. |
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Harrah�s Entertainment, Inc. |