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Casinos Outperform Despite Slowdown13 July 2001LOS ANGELES, California – July 13, 2001 –As reported by Reuters: "Upside earnings surprises this week from mid-sized casino operators Aztar Corp. and Boyd Gaming Corp.indicate the gambling industry is weathering the economic downturn better than other segments of the leisure industry, analysts said on Thursday. "…The upside surprises followed a series of recent mixed signals from two of the industry's largest operators, Harrah's Entertainment Inc. and MGM Mirage "Harrah's warned last Thursday that it would report second-quarter earnings of 46 cents to 50 cents per share, well below the then-consensus forecast of 55 cents per share. But two days earlier, MGM Mirage Chief Financial Officer Jim Murren said he was comfortable with the consensus analysts estimate for his company, which owns the Bellagio and MGM Grand casinos in Las Vegas. "Clouding the issue further, data released earlier this week showed that Nevada gaming revenues rose a healthy 5.7 percent in May compared with a year ago, with the important Las Vegas Strip posting an even stronger 11.9 percent gain. That advance came on the heals of much weaker numbers in March and April. "…The mixed bag for the gaming sector comes in contrast to other leisure segments, such as hotels and airlines, where indicators are down across the board. "…Based on information supplied by gaming companies so far, markets that appear to be feeling a pinch from the economic slowdown are mostly in the Midwest and South, Egger said. They include northern and southern Indiana, northern Nevada, northern Mississippi and parts of Louisiana…" |