Company reports strong quarterly, annual earnings

Robert Macy

Tuesday, Feb. 1, 2000 | 9:48 a.m.

Bolstered by the opening of its new Paris-themed resort here and two new properties in Mississippi, Park Place Entertainment Corporation Tuesday reported fourth quarter earnings doubled those of a year ago.

The company reported net revenues of $850 million for the quarter ending Dec. 31, up from $712 million in 1998. Net revenues for the year were $3.18 billion in 1999 compared to $2.9 billion the previous year.

Diluted earnings per share for the quarter were 11 cents versus pro forma earnings of 5 cents in 1998, excluding one-time, non-cash asset write-downs in 1999 and 1998.

The results marked the first full year of operation for Park Place after spinning off from Hilton Hotel Corp.

Major achievements during the year included opening the new 2,900-room, $760 million Paris Las Vegas hotel-casino on the Las Vegas Strip in September and the $3 billion purchase of Caesars World, which closed Dec. 29. The company also opened the 600-room Terrace Hotel & Spa in Tunica in March and the 600-room Oasis Resort and Spa in Gulfport in June.

"We are very proud of our accomplishments in our first year and look forward to continuing the momentum in 2000," said Arthur Goldberg, president and chief executive officer. "We are working towards integrating Caesars and implementing processes and procedures that improve the product we deliver to our customers while simultaneously optimizing operating efficiency."

EBITDA, earnings before interest, taxes, depreciation, amortization, pre-opening expense and non-cash items was $193 million for the quarter ending Dec. 31, up from $139 million the previous year. EBITDA for the year was $778 million, compared to $683 million in 1998.

Park Place owns, manages or has an interest in 29 gambling properties operating under the Bally's, Caesars, Flamingo, Grand and Hilton brand names. The company has over 28,000 hotel rooms and approximatley 65,000 employees worldwide.