In December 2006 Harrah’s Entertainment completed the acquisition of London Clubs International, giving the company seven UK casinos, two in Egypt and one in South Africa plus four others in the UK under development. Harrah’s also entered an agreement in October to acquire the Barbary Coast, and will now have control of about 350 acres around the centre of the Las Vegas Strip.

On 8 February 2007 Harrah’s filed a preliminary proxy statement with the Securities and Exchange Commission regarding the pending sale of the company. Harrah’s stockholders will receive US$90 in cash for each outstanding Harrah’s share following the Board of Directors’ approval of the buy-out offer from affiliates of Texas Pacific Group and Apollo Management in an all-cash transaction.

Fourth-quarter revenues rose 16% and full-year 2006 revenues were up 38% to US$9.7 billion. Full-year income from operations reached US$1.6 billion, an increase of 51.3% on 2005 figures. A loss of US$24.5 million posted in the fourth-quarter of 2005 for continuing operations has been turned into income of US$39.4 million for the same period in 2006. However, adjusted earnings from continuing operations dropped to $85.3 million, or 45 cents per share, from $143.4 million, or 77 cents per share, last year. Analysts had expected 64 cents per share.

"During the 2006 fourth quarter, continued robust visitation in the Las Vegas Region, due in large part to completion of the integration of our Total Rewards customer-loyalty program into the Caesars legacy properties, drove revenues to a record level," said Gary Loveman, Harrah's Entertainment chairman, president and chief executive officer. "Development costs and narrower margins in Atlantic City than in the 2005 fourth quarter impacted overall Property EBITDA and, combined with higher interest expenses, affected per-share results." (E-02.28.07)

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