Hard Rock Hotel Inc. losses narrow

Friday, Jan. 22, 1999 | 11:28 a.m.

Hard Rock Hotel Inc., which operates a Paradise Road hotel-casino, reported narrower fourth-quarter and fiscal-year losses for the periods ended Nov. 30.

The company said it lost $7,608 in the fourth quarter, compared with a $20.1 million loss in the year-earlier period. Revenue for the latest quarter was $18 million, down from $19.1 million in the year-ago quarter.

For fiscal 1998, Hard Rock said, it lost $3.7 million, down from a $17.5 million loss for fiscal 1997. Revenue fell to $75.7 million in the latest year from $77 million in fiscal 1977.

The company said the losses for fiscal 1997's fourth quarter and full year included a $24.7 million charge for termination of a management contract with Harvey's Casino Resorts, which two years ago sold its 40 percent stake in Hard Rock and ended its management agreement with the Las Vegas company.

The latest year's loss includes a one-time $3.5 million charge for early retirement of debt, Hard Rock said. Revenue fell in the latest periods due to a drop in retail sales.

Hard Rock Chief Financial Officer Bruce Dall said the lower retail revenue was part of a "macro-trend" that has seen declining sales of T-shirts and other merchandise at Planet Hollywood, All-Star Cafe and Hard Rock outlets worldwide.

"But we opened a brand-new retail outlet in October that offers a wider mix of items than what we traditionally sold," Dall said.

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