Caesars Entertainment, the world's largest casino operator by revenue, reported a narrower second-quarter loss after cutting costs.

Caesars, which has 10 casinos on the Las Vegas Strip, reported a net loss of $155.5 million, compared with a loss of $274 million in the year-earlier quarter.

Net revenue rose 0.4 percent to $2.3 billion as higher hotel revenue and more spending by frequent customers offset a decline in visits and the temporary closing of five properties in the Illinois, Indiana, Louisiana and Mississippi regions because of floods.

"Our second-quarter results clearly indicate that the organizational and strategic changes we've made to meet the challenges of the recession are improving our performance and paving the way for accelerated growth when the economy improves," Gary Loveman, Caesars' chairman and chief executive officer said in a statement on Tuesday.

The Caesars numbers follow rival MGM Resorts International's (MGM.N) report on Monday of better-than-expected second-quarter results.

MGM shares were down 5.3 percent at $10.93 on the New York Stock Exchange as investors assessed the impact of recent turmoil in the financial markets on consumer spending.

Caesars, once known as Harrah's Entertainment, scrapped plans for an initial public offering in November after it became clear there were too few buyers at the planned price range.

The Las Vegas-based company operates more than 50 casinos in 12 U.S. states and internationally, mostly under the Caesars, Harrah's and Horseshoe brands.

Caesars is controlled by private equity firms Apollo Management [APOLO.UL] and TPG Capital [TPG.UL], which bought Harrah's in a $31 billion leveraged buyout in early 2008.