Harrah’s, MGM Mirage Post Higher Earnings

Harrah’s Entertainment Inc. and MGM Mirage, which are buying rival casino companies, said second-quarter earnings rose as more people visited their resorts in Las Vegas.

Harrah’s, the second-biggest U.S. casino company, said net income jumped 18%, and No. 3 MGM Mirage said profit almost doubled.

Revenue rose 4.5% at Harrah’s and 10% at MGM Mirage.

Both companies are based in Las Vegas.

“There’s been a renewed uptick in travel generally, and Las Vegas seems to be getting at least, if not more, than a fair share of that travel,” said John Adams of Munder Capital Management in Birmingham, Mich.

The number of visitors to the city increased 7.3% through May, to 15.76 million, compared with the first five months of 2003, according to the Las Vegas Convention and Visitors Authority.

Harrah’s last week agreed to purchase Caesars Entertainment Inc. for $5.18 billion to add four resorts in Las Vegas.

MGM Mirage is buying Mandalay Resort Group for $4.7 billion to attract convention-goers.

Harrah’s said second-quarter net income rose to $90.2 million, or 79 cents a share, from $76.7 million, or 69 cents, a year earlier. Revenue climbed to $1.13 billion.

MGM Mirage, controlled by billionaire Kirk Kerkorian, reported that net income increased to $104.7 million, or 72 cents a share, from $53.8 million, or 35 cents. Revenue rose to $1.07 billion.

Shares of Harrah’s fell 94 cents to $46.60. MGM Mirage rose 75 cents to $43.08. Both trade on the New York Stock Exchange.