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Planet Hollywood expands
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October 31, 1997: 5:56 p.m. ET
Plans $250M hotel and casino as third-quarter profit rises 30 percent
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NEW YORK (CNNfn) - Planet Hollywood reported a 30 percent increase in third-quarter profits Friday and announced it will build a $250 million hotel and casino in Las Vegas with Aladdin Gaming LLC.
The 1,000-room hotel and 50,000-square-foot casino will open in late 1999 on Las Vegas Boulevard at the corner of Harmon Avenue, the company said. It will share a spot alongside a new Aladdin hotel and casino under construction.
"Planet Hollywood's performance for the third quarter reflects our continuing strategy to diversify our sources of revenues and income," said its chief executive, Robert Earl.
The company, which went public in September, announced earnings of $25.2 million, or 23 cents a share, compared with $19.4 million, or 18 cents a share, for the same period last year. The results fell slightly short of analysts' expectations of 24 cents a share.
Revenues rose to $149.6 million, an increase of 34 percent from last year's $111.8 million.
For the first nine months of the year, the company had earnings of $52.1 million, or 47 cents a share, compared with $33.9 million, or 34 cents a year, in the same period last year. Revenues were $373.1 million, compared with $274.2 million last year, a 36 percent increase.
The 1996 results don't include a one-time charge of $10.4 million to pay off debt.
Planet Hollywood recently announced a $200 million plan to convert New York City's Hotel Pennsylvania into the Official All-Star Hotel.
As part of the Las Vegas plans, Aladdin will contribute the land and infrastructure valued at $20 million, a management team, an existing Theatre for the Performing Arts with seating for 7,000 people, and $21 million in cash in exchange for 50-percent ownership.
In an adjacent site, Aladdin plans to demolish and rebuild its hotel and casino in a $1.3 billion project. The complex will include a 2,600-room hotel and shopping and is also scheduled to open in 1999.
"We're very pleased to have Planet Hollywood as an integral part of the Aladdin project," said Chairman Jack Sommer.
Planet Hollywood stock, (PHL) closed up 1/16 at 15-15/16 on the New York Stock Exchange Friday. 
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