Caesars Posts Massive 2020 Loss
Caesars Entertainment, the US gaming and entertainment giant formed by the eponymous company’s merger with Eldorado Resorts in July last year, has posted what can only be described as a spectacular US$2.72bn (£1.94bn/€2.24bn) loss for 2020.
And–after fingering the Covid-19 virus as the principal driver for the massive financial hit–Caesars has, not unsurprisingly, expressed its mighty relief at being able to “close the book” on its pandemic-disrupted year.
“It was, by any measure, the most challenging year that we’ve had operationally and personally to date,” conceded Chief Executive Tom Reeg.
While Caesars turned over an impressive US$6.10bn (£4.36bn/€5.04bn) in 2020, this, nevertheless, represented a 42.5 per cent drop compared to the total 2019 revenues of the joint company’s previous avatars.
A more detailed 2020 fiscal breakdown saw Caesars making US$3.93bn (£2.80bn/€3.24bn) in regional operations, down 35.5 per cent. Las Vegas revenue, hammered by Covid-19 closures and constrictive health protocols, slumped by almost 55 per cent to US$1.77bn (£1.26bn/€1.46bn). And international and online revenue also fell by over 36 per cent, to US$384m (£274.48m/€317.41m).
The Eldorado Resorts arm of the business, pre-and post-merger over 2020, made an operating loss of US$437m (£312.36m/€361.15m), factoring-in additional acquisition and administrative costs – compared to an operating profit of US$410m (£293.04m/€338.84m) in 2019.
It was reported that the company paid US$1.17bn (£836.23m/€966.93m) in interest payments and paid off a further US$195m (£139.38m/€161.15m) of debt.
With Caesars scheduled to complete its much-vaunted acquisition of British bookies William Hill, for an agreed US$3.72bn (£2.65bn/€3.07bn) in this year’s second financial quarter, the move is expected to have a major impact on resetting the company’s profitability and driving online gaming growth.
The gaming and entertainment giant is already operating live sports books in 15 states and Washington DC through an existing joint venture with William Hill US.
Insiders report that Caesars is planning to sell off all of William Hill’s non-US verticals, perhaps for as much as US$2.79bn (£2bn/€2.31bn), once the takeover has been completed.