Shares in U.S. gambling big hitter Caesars Entertainment have fallen by more than two percent following a lacklustre Q3, which failed to meet market expectations and featured a significant drop in Vegas revenues for the Nevada top-heavy business.
Caesars reported total net revenues of US$2.9 billion (£2.19bn) for the quarter, ending September 30, in line with estimates, but earnings-per-share fell by 27 cents-a-share, as opposed to a minus-3-cents-a-share anticipated by analysts.
Overall the value of Caesar’s shares on the Nasdaq have fallen by over 14 percent in the last three months and by more than 50 percent in the last year.
Net Loss
The company posted a net loss of US$55 million (£41.6m), compared with a US$9 million (£6.8m) loss in the same prior-year period.
Adjusted EBITDA was US$884 million (£668.4m), down 11 percent, year-on-year; while Caesars’ digital vertical reported Adjusted EBITDA of US$28 million (£21.17m) compared with US$52 million (£39.33m) in Q3 2024.
Regional operations did, however, grow by six percent to US$1.54 billion (£1.16bn) in the quarter,. But Las Vegas revenues declined by nearly 10 percent to US$952 million (£720.22m).
For the year’s first nine months, ending September 30, group revenue hit US$8.6 billion (£6.5bn), an increase of 1.7 percent, year-on-year. Caesars Digital saw the strongest growth, up nearly 15 percent — offset by declines in Vegas operations.
Debt
Caesars’ debt during this period remained a stonking US$11.9 billion (£9bn) and total available liquidity was posted as US$2.8 billion (£2.11bn).
A downbeat Caesars CEO, Tom Reeg, commented: “Our Las Vegas segment Adjusted EBITDA declined during the quarter due to lower city-wide visitation and poor table games hold. Volumes in our Caesars
“[But] our Digital segment were strong, driven by continued product improvements; while Adjusted EBITDA was negatively impacted by lower-than-expected sports hold during September.
“As we look to the fourth quarter, we anticipate improved operating performance given stronger occupancy in Las Vegas, continued momentum in our Caesars Digital segment and stable operating trends in our regional portfolio.”
