Trump casinos posted its biggest loss since coming out of bankruptcy in 2005
Trump Entertainment Resorts, the casino company founded by Donald Trump, posted its biggest loss since coming out of bankruptcy in 2005 as declining revenue prompted it to write down the value of its three properties.
The loss swelled to USD 183.2 million from USD 9.68 million a year earlier, the Atlantic City-based company said yesterday in a statement. Revenue fell 6.4 percent to USD 228.6 million.
Trump’s Atlantic City properties lost business to six slots-only casinos that have opened in Pennsylvania since November 2006. Customers facing higher gasoline prices and declining home values are gambling less, helping push down revenues in the second-largest U.S. casino market after Las Vegas last year for the first time.
„There’s no question Atlantic City is a difficult environment to operate in, and some properties had a difficult fourth quarter,’’ said Carlo Santarelli, an analyst with Bear Stearns Cos. who recommends holding Trump shares.
Trump Entertainment fell 11 percent to USD 3.31 in Nasdaq Stock Market trading. The shares dropped 10 percent this year through Tuesday and 74 percent since the company emerged from bankruptcy May 20, 2005. Five analysts surveyed by Bloomberg predicted a loss of 35 cents. Three analysts said revenue would be USD 233.7 million.
Trump Entertainment wrote off USD 147.4 million in goodwill and other intangibles at its three casinos and another USD 91.3 million because of the deteriorating value of the Trump Marina.