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Caesars Entertainment reported record earnings for the quarter and full year ended December 31, 2004.

For the fourth quarter of 2004, the company reported net income of $20 million, or $0.06 per fully diluted share. That compares to a net loss of $(84) million, or $(0.28) per fully diluted share, for the fourth quarter of 2003.

Previously, the company's highest reported fourth quarter net income was $17 million in 1999, resulting in earnings per diluted share of $0.05.

Adjusted net income for the fourth quarter of 2004 was $27 million, or $0.08 per diluted share. Adjusted net income for the quarter excluded $4 million in net income from five properties scheduled to be sold (classified as "discontinued operations"), an $8-million charge related to the termination of a lease at Caesars Atlantic City and an $11-million gain related to the sale of real estate in Atlantic City. Adjusted net income also excluded expenses of $16 million related to the company's pending acquisition by Harrah's Entertainment, Inc.

Adjusted net income for the fourth quarter of 2003 was $11 million, or $0.04 per diluted share. In that quarter, adjusted net income excluded a $57-million write-down (net of tax) of the book value of Flamingo Laughlin and a $38-million goodwill impairment at Caesars Tahoe, which is included in discontinued operations.

Net revenue for the fourth quarter of 2004 was $1.008 billion -- an all-time record after adjustment for discontinued operations. That compares to $946 million in the fourth quarter of 2003. Fourth quarter EBITDA -- earnings before interest, taxes, depreciation and amortization and charges and gains (and after corporate expense) -- was $216 million, compared to $188 million in the fourth quarter of 2003.

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