Buoyed by a strong iGaming performance, Caesars Entertainment has released its financial results for the first quarter of 2025, reporting net revenues of US$2.8 billion (£2.09bn), up from US$2.7 billion (£2.02bn) in the same period last year.
The American gambling giant also reduced its net loss in Q1 to -US$115 million (-£86.09m), compared to a loss of -US$158 million (£118.29m) in Q1 2024.
Caesars’ Adjusted EBITDA reached US$884 million (£661.65m), an increase of 4.1 percent year-on-year. And Caesars Digital delivered a significant contribution to this figure, reporting Adjusted EBITDA of US$43 million (£32.18m) — compared to only US$5 million (£3.74m) in the first quarter of last year.
The digital division also recorded an 18.8 percent increase in net revenue, rising from US$282 million (£211.03m) to US$335 million (£250.7m).
iGaming Boost
Indeed Caesars’ iGaming vertical is proving such a boost to company fortunes that serious consideration is now being given to spin it off; perhaps as a part solution to help pay-down the group’s massive US$12.3 billion debt (£9.2bn).
It’s been reported that the Vegas heavy-hitter is discussing such a venture with legendary corporate fixer and investor Carl C. Icahn, and that two Icahn acolytes have joined the Caesars Board.
Returning more immediately to Caesars Entertainment Q1 results, the regional division reported growth of 1.7 percent in net revenue and 1.6 percent growth in Adjusted EBITDA.
But Las Vegas revenue declined by 1.9 percent, with its Adjusted EBITDA dropping by 0.7 percent.
Net income from the Las Vegas division decreased from US$198 million (£148.21m) to US$177 million (£132.49m).
Management noted the performance of Caesars Digital as a key driver of improved results, supported by continued player engagement and product development across its iGaming operations.
Digital Record
Caesars CEO Tom Reeg affirmed: “During the first quarter of 2025, consolidated Adjusted EBITDA grew by four percent over the prior year, driven by significant gains in our Digital segment, which delivered a new Q1 record, growth in our regional segment with strong contributions from recently-opened properties and a solid quarter in Las Vegas [despite] a ‘tough’ Super Bowl, compared to last year.
“We continue to expect 2025 to benefit from meaningfully lower year-over-year capital expenditures and cash interest expense.”
Added CFO Bret Yunker: “When combined with strong operating fundamentals, free cash flow this year will show a significant improvement. Accelerating free cash flow in 2025 will allow us to continue to reduce debt alongside opportunistic share repurchases during market dislocations.
“To that end, we repurchased $100 million of our shares during April at an average price of $23.84-per-share.”
