Hilton Earnings Nearly Double; Gaming Credited

Record casino gambling profits pushed first-quarter earnings up 92% at Hilton Hotels Corp., which took itself off the auction block in March because of disappointingly low offers.

“The Las Vegas Hilton results last year were abnormally low, but the improvement there and at the Flamingo Hilton-Las Vegas are positive considering the recent capacity expansion along the Las Vegas Strip,” said Hilton Chairman Barron Hilton.

During its first quarter, which ended March 31, Hilton had net income of $25.1 million, or 52 cents per share, compared to $13.1 million, or 27 cents per share, in the same period a year earlier. Revenue rose by 18% to $265.5 million from $225.1 million.

Hotel income was up 8% at $22.8 million, Hilton said. But it was in the gaming segment where profits rocketed by 119% to $33.8 million, the highest level in the company’s history, Hilton said.