Caesars reports strong revenue growth thanks to online casino launch

Article by : Charles Perrin Nov 1, 2023

• 
• 

Caesars is on an upward trajectory judging by their latest financial results which ascertains their performance during Q3.

Group revenues at Caesars hit $2.99billion, reflecting an increase of 3.7% on the previous year, and they posted a record adjusted EBITDA (Earnings before interest, taxes before depreciation, and amortization) of $1.04bn.

Broadly speaking, there has been sustained growth across all core areas of the business, but much of the success can be dedicated to the digital arm of the operation.

Back in August, Caesars launched its new proprietary igaming platform and mobile app Caesars Palace Online Casino, and this has played a key role in the group’s strong revenue figures.

Spending on digital rose by 38%, but it seems that the impact of Caesars Palace Online Casino won’t be truly felt until Q4.

Caesars CEO Tom Reeg hailed the impact of Caesars Palace Online during an investor call, however, he has already outlined the company’s exciting plans in 2024.

He said: “We feel that there’s a lot of opportunity to improve the integration of the various game vendors that will give us more insight into the actual workings of the game and see what customers are playing and where the spins are.

“We are also exploring the possibilities of adding another skin to the portfolio. There are a number of states where we have additional licenses that we’ve reserved. We would plan to roll that out later in 2024.

“The [$500million EBITDA target] has not changed. We continue to see a visible path to that end. And each quarter, we grow more confident.”

Breaking down the revenue results further in the three months to 30 September, casino activities pulled in the most revenue at $1.62bn, up 0.9%.

The regional business remains the predominant source of revenue, however, Las Vegas revenues surged by 4% to $1.12bn, with EBITDA rising 0.4% to $482m.

Digital growth has been evident, with revenues during the nine months to 30 September 8.9% higher year-on-year at $8.70bn.

Caesars president and chief operating officer Anthony Carano hinted that the group will continue in the same vigor heading into Q4, and it’s fair to assert that the company is riding the crest of a wave at the moment.