Hail Caesars! Gambling Giant Posts Record Q3
Gambling and resorts leviathan Caesars Entertainment, Inc. has posted a record-breaking Q3 that saw its net revenues grow 3.7 percent to US$3 billion (£2.47bn), year-on-year.
The company’s net income during the financial quarter, ending September 30, was US$74 million (£60.97m), compared to US$52 million (£42.84m) in Q3 2022.
Consolidated Adjusted EBITDA was US$1.04 billion (£856.9m), against the US$1.01 billion (£832.2m) of the third quarter last year.
Most significantly, Caesars Digital–with total spend up by more than 30 percent, year-on-year–moved towards profit, with an Adjusted EBITDA of US$2 million (£1.64m), compared to a loss of US$38 million (£31.31m) in Q3 2022.
“During the third quarter of 2023, the Company achieved an all-time consolidated Adjusted EBITDA record,” affirmed Caesars Entertainment CEO Tom Reeg.
“We experienced Adjusted EBITDA growth [year-on-year] in all three of our primary operating segments including Las Vegas, Regional and Caesars Digital.
“Our Regional segment achieved an all-time quarterly Adjusted EBITDA record as we harvest the recent portfolio investments within this segment.”
Momentum
In a further breakdown of net revenues for Q3, Caesars’ operations in Las Vegas generated US$1.12 billion (£922.8m), up from US$1.077 billion (£881.6m) in 2022’s third quarter.
The Regional segment reported revenues of US$1.565 billion (£1.29bn), also up; and Caesars Digital produced revenue of US$215 million (£177.15m), a slight increase from the previous year’s US$212 million (£174.68m).
Digital reported a loss of US$29 million (£23.89m), a significant improvement on the loss of US$63 million (£51.91m) of Q3 the previous year.
The company also significantly paid down debts through Q3, reported Chief Financial Officer Bret Yunker.
“We continued to simplify our capital structure through the repayment of our US$250 million (£205.99m) Baltimore Term Loan during the third quarter, bringing aggregate debt reduction to over US$600 million (£494.39m) year to date, and reducing total net leverage under our bank credit facility to 3.9x as of September 30, 2023,” said Yunker.
Added CEO Reeg: “Looking forward, we feel very good about what we see in front of us. We’re excited about the momentum.”
