Boosted By Bold Digital Turnaround, Caesars Entertainment Reports Strong Q1 2023 Financial Results
From vertiginous loss to near break-even in only a year, Caesars Entertainment’s bold digital gambit appears to be on the cusp of paying off big time as the US gambling giant, like most its peers, reports strong financial results for the first quarter of the year.
Caesars Digital–featuring the company’s iGaming and sportsbook operations–reported a same-store Adjusted EBITDA loss of US$4 million (£3.18m), compared to a loss of US$554 million (£440.55m) for Q1 2022.
“Caesars Entertainment is poised to capitalize on the tremendous opportunities available in the dynamic and rapidly-evolving iGaming and sports betting market,” affirmed CEO Tom Reeg.
“[And] our digital segment was nearly break-even in the quarter despite launching operations in Ohio and Massachusetts.”
Overall, Caesars’ net revenues rose to US$2.8 billion (£2.22bn) across the quarter, compared to US$2.3 billion (£1.82bn) in the same period last year — with same-store Adjusted-EBITDA of US$958 million (£761.82m), against the US$296 million (£235.36m) of Q1 2022.
Growth was driven in several key areas, notably Las Vegas and regional gaming properties and, as mentioned, the hyper improved performance of its digital vertical.
Vegas net revenue increased by 23.7 percent; while same-store Adjusted EBITDA rose by 33.3 percent to US$533 million (£423.85).
Regional net revenues grew fractionally, by 2.2 percent, with same-store Adjusted EBITDA of US$448 million (£388.06).
With Caesars Digital moving significantly into the positive fiscal column, the company is citing partnerships and tie-ins with a number of top-tier providers and suppliers, among them Scientific Games, IGT and Playtech, as key to projected success.
“[We] have a strong brand and a proven track record of delivering high-quality gaming experiences to customers around the world, with a focus on innovation and growth.
“We delivered another strong quarter led by a new Q1 Adjusted-EBITDA record in Las Vegas [and] results in our regional segment remained consistent with prior quarters, especially when excluding the impact of bad weather in northern Nevada during the quarter.”
Indeed, it would appear that for Reeg and Caesars only fair days lie ahead.