Down. Down. Down, with only digital pulsing positive light in an otherwise negative Q3 for gambling industry leviathan Caesars Entertainment, Inc., as it grapples with US$12.7 billion (£9.78bn) of corporate debt — already US$300 million (£231.15m) more than all 12-months of last year.
The US$500 million (£385.29m) sale of its storied World Series of Poker (WSOP) brand to the NSUS Group and the US$275 million (£211.99m) off-load of its LINQ Promenade retail space in the heart of the famous Vegas Strip to a TPG Real Estate and Acadia Realty joint-venture may have ameliorated a modicum of fiscal pain but across all metrics–save iGaming–money was down in the quarter, ending September 30.
Net Revenue fell year-on-year by US$100 million to US$2.9 billion (£2.23bn) and there was a Net Loss of US$9 million during the quarter, compared to Net Income of US$74 million (£57.03m) in Q3 2023.
While total Adjusted EBITDA was steady at US$1 billion (£770.82m), y-o-y, Caesars Digital was the company’s only vertical to show notable growth, with its Adjusted EBITDA rising to US$52 million (£40.08m) from just US$2 million (£1.54m) in the third quarter of last year.
Las Vegas Net Revenue was down 1.3 percent to US$1.06 billion (£817.3m).
Regional Revenue slumped 7.6 percent to US$1.45 billion (£1.12bn).
Negative Impacts
Putting lipstick on the financial pig, Caesars Chief Financial Officer Bret Yunker commented: “We are excited to be nearing the completion of our multi-year Caesars New Orleans renovation and permanent Caesars Virginia projects.”
And CEO Tom Reeg asserted: “Regional segment operating results were negatively impacted by new competition, construction disruption and difficult comparisons versus the prior year.
“[But] Caesars Digital set a new all-time quarterly record for Adjusted EBITDA driven by over 40 percent growth in net revenues.
“On October 17, we successfully closed on a new US$1.1 billion senior unsecured refinancing which, along with financings (sic) earlier in the year, continue to set the stage for significant interest expense savings in 2025.
“As of today, we have received US$250 million (£192.74m) in cash proceeds from the World Series of Poker brand sale.
“[And] the sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals.”
With Caesars also reporting total Net Revenue for the first nine-months of the year falling to US$8.45 billion (£6.52bn), from US$8.7 billion (£6.7bn), compared to the same period last year, that goal seems a long, long way off.
