Harrah’s Second Quarter Profits Soar

Harrah’s Entertainment reported last week that profits for its second quarter rose 85 percent, thanks to a new race track casino in Pennsylvania and strong business in Las Vegas.   

Profits were $237.5 million, compared to $128.6 million for the same quarter in 2006.  Revenues grew 14 percent to $2.7 billion, outreaching analyst estimates of $2.59 billion.

Las Vegas revenues were up 14.8 percent to $922.5 million, producing a 13.9 percent increase in profits, to $238.8 million.  Revenues from the Gulf Coast region rose 15.3 percent to $389 million, resulting in a strong profit of $93.6 million, a 49 percent increase.

Atlantic City was the weak spot.  Revenue grew 13.7 percent $592.6 million, but profits slid 37.8 percent to $77.2 million, as Harrah’s spent money on customer retention.