Caesars Entertainment Reports $1B Revenue Increase

Article by : Erik Gibbs Aug 4, 2023

• 
• 

Caesars Entertainment, one of the cornerstones of gaming and entertainment, has announced $2.9 billion in revenue for the second quarter of this year. This beat the $2.8 billion achieved in the corresponding period of the previous year and is the result of an increase in demand witnessed within regional marketplaces and Las Vegas.

Moreover, for the quarter, Caesars secured a net profit of $920 million. This was a significant jump from the loss of $123 million recorded during the second quarter of 2022.

Caesars CEO Tom Reeg, in a call with investors, confidently stated that the company remains untouched by any economic concerns expressed by analysts. However, he did stress the need for Caesars to improve its performance in baccarat during June. The high-roller card game didn’t attract as much attention as it had in previous months.

Caesars’ exceptional track record was marred by this drop. In the second quarter, the Las Vegas division of the company witnessed a 1.2% drop in revenue, which amounted to approximately $1.13 billion, as compared to $1.14 billion in the corresponding period last year.

For other financial findings, the same-store adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) stood at $1 billion, as compared to $978 million during the corresponding period in 2022. Furthermore, excluding the Caesars Digital division, the same-store adjusted EBITDA reached $996 million, falling slightly from the $1 billion achieved in the second quarter of last year.

For the quarter, casino revenue saw a slight increase from $1.54 billion last year to $1.58 billion. Similarly, the food and beverage segment’s revenue witnessed an uptick from $422 million to $435 million compared to last year. At the same time, there was a noteworthy rise in hotel revenue from $519 million to $525 million. Additionally, the casino’s other revenue showed growth from $331 million to $335 million.

Las Vegas is going to host major sporting events, including the Formula 1 Grand Prix in November and Super Bowl LVIII in February 2024. Reeg expressed optimism about these developments, as they bode well for Nevada’s leading casino operator.

Reeg revealed in the call that this will likely give Caesars a boost in both its lodging and gaming operations. He believes the company’s Las Vegas operations will see an overall occupancy rate of 96% to 98% for race weekend from November 16-18.