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CAESARS WORLD REPORTS FY93 FIRST QUARTER RESULTS

 LOS ANGELES, Nov. 18 ~PRNewswire~ -- Caesars World Inc. (NYSE: CAW) today announced net income for its fiscal 1993 first quarter was $14,967,000, or 62 cents per share, compared with $22,902,000, or 95 cents per share, in the fiscal 1992 first quarter.
 Revenue for the quarter ended Oct. 31, 1992, amounted to $232,562,000, compared with $234,093,000, in the comparable period of the previous fiscal year.
 The company emphasized, however, that casino play in table games and slot machines showed increases over the prior-year quarter in its Nevada as well as its New Jersey operations. The decline in net income -- which the company previously announced it expected -- was primarily caused by substantially lower table game win percentages. The company said that over comparatively short quarterly periods, table game win percentages can be abnormally high or low. Such win percentages have historically balanced out over the long term.
 In the company's Nevada operations, table game activity increased 12 percent over the comparable prior-year quarter. However, a 15.8 percent table game win percentage in the fiscal 1993 quarter was dramatically lower than the 22.8 percent recorded in the same fiscal 1992 quarter. The long-term average for table game win percentages is in the 22 percent range. As a result of the lower win percentages, there was a 22 percent decrease in table game revenue for the fiscal 1993 quarter. This table game decline occurred principally in baccarat, which is strongly influenced by high- betting-level customers.
 Nevertheless, the company said it was encouraged by the increase in table game activity in Nevada and was especially pleased with a 35 percent rise in slot machine revenue in the Nevada operations. The slots improvement was primarily attributable to traffic generated by the Forum Shops at Caesars, which opened in May 1992 and is attached to the north end of Caesars Palace in Las Vegas, and by the introduction of the Palace's new Emperors Club marketing program.
 Nevada operations also had higher casino marketing costs during the fiscal 1993 first quarter, largely related to the increase in high-level activity as well as costs associated with the Emperors Club introduction.
 In New Jersey, Caesars Atlantic City experienced a 9 percent rise in table game activity, which was more than offset by lower table game win percentages, primarily from high-level play in baccarat.
 Slot revenue at Caesars Atlantic City showed a double-digit increase for the sixth consecutive quarter, rising 13 percent over the comparable fiscal 1992 period.
 Casino marketing and other costs related to increased table game and slots play at Caesars Atlantic City also increased, but these were partially offset by a decline in the resort's provision for doubtful accounts.
 Caesars World's net interest expense decreased 15 percent, when comparing the fiscal 1993 and 1992 first quarters, because of debt repayments in fiscal 1992 and the company's previously announced debt refinancing, which was substantially completed Oct. 1, 1992. As a result of the refinancing, Caesars World expects its future interest charges to be substantially reduced over the prior-year periods.
 CAESARS WORLD INC.
 Summary of Earnings
 (Unaudited)
 (In thousands, except net income per share)
 For the periods ended Oct. 31,
 Three Months
 1992 1991
 Revenue
 Nevada $118,231 $121,180
 New Jersey(a) 95,063 94,372
 Casino~hotel operations 213,294 215,552
 Pocono resorts 13,726 13,568
 Other(b) 5,542 4,973
 Total revenue $232,562 $234,093
 Contributions to operating income
 Nevada $13,231 $22,966
 New Jersey 19,829 24,429
 Casino~hotel operations 33,060 47,395
 Pocono resorts 4,829 4,609
 Other expenses(b) (4,181) (3,566)
 Operating income 33,708 48,438
 Interest income 807 383
 Interest expense (10,375) (11,643)
 Income before income taxes 24,140 37,178
 Income taxes 9,173 14,276
 Net income $14,967 $22,902
 Net income per share $.62 $.95
 Average number of common and common
 equivalent shares outstanding 24,290 24,062
 (a) The 1991 revenue has been reclassified in order to conform to the presentation used in 1992.
 (b) Other revenue is primarily from merchandising operations. Other expenses include the contribution from merchandising operations and corporate expenses.
 -0- 11~18~92
 ~CONTACT: Jack Leone of Caesars World Inc., 310-552-2711~
 (CAW)


CO: Caesars World Inc. ST: California IN: CNO LEI SU: ERN

KJ-LS -- LA008 -- 2193 11~18~92 09:06 EST
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Date:Nov 18, 1992
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