Park Place 3rd-Qtr Earnings Rise 17% on Caesars Casino Winnings

(Bloomberg) -- Park Place Entertainment Corp., the world's largest casino company, said third-quarter earnings rose 17 percent on increased winnings at its Caesars chain.

Profit from operations for the Las Vegas-based company rose to $68 million, or 22 cents a share, from $58 million or 19 cents in the year-earlier period. Revenue rose 52 percent to $1.3 billion from $839 million, the company said in a press release issued by Business Wire.

Park Place reported higher profit from its Las Vegas, Atlantic City, New Jersey and Mississippi casinos. The Caesars chain, which it acquired last year, reported a 37 percent increase in earnings before interest, taxes, depreciation and amortization, because of the higher winnings and cost cutting.

The company was expected to earn 21 cents, based on the average estimate of analysts polled by First Call/Thomson Financial.

Park Place named Hilton Hotels Corp. executive Thomas Gallagher as its new president and chief executive earlier this week following the death of Arthur Goldberg, who died Oct. 19 at age 58. Gallagher, 55, was executive vice president, chief administrative officer and general counsel at Hilton, the third- largest U.S. hotel chain.

Gallagher was at Hilton when it spun off its casino business in December 1998 to form Park Place.

Including preopening charges, Park Place reported net income rose to $67 million, or 22 cents from $34 million, or 11 cents in the year-earlier period.

Park Place shares fell 6 cents to $13.50 in midmorning trading. The company also owns the Hilton and Bally's casino chains.