Mind Boggling Billions But It’s Debt Away As Digital Rules OK For Caesars Entertainment
Driven by spectacular digital performance, US gambling leviathan Caesars Entertainment, Inc. has reported sterling Full Year results for 2023.
Total revenue for the Omnichannel was US$11.5 billion (£9.11bn), compared to US$10.8 billion (£8.55bn) the previous year.
The company moved from a net loss of US$899 million (-£712.44m) in 2022 to net income of US$786 million (£622.89m) in 2023.
And Adjusted EBITDA in FY23 was clocked at US$3.9 billion (£3.09bn), up US$700 million (£554.73m) year-on-year.
Caesars digital vertical–Caesars Interactive and Caesars Sportsbook–led the charge, with Adjusted EBITDA for the full year of US$38 million (£36.01m) – compared to a recorded loss of US$666 million (-£527.79m) in 2022.
During the last quarter of FY23, Caesars reported total revenue of US$2.83 billion (£2.24bn), a slight bump from the US$2.82 billion (£2.23bn) of Q4 2022.
The company recorded a net loss of US$72 million (-£57.05m) for the quarter, compared to a loss of US$148 million (-£117.28m) in the comparable period of the previous year.
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Q4 Adjusted EBITDA was US$930 million (£737m), down US$19 million (£15.05m) year-on-year.
Adjusted EBITDA for Caesar’s digital segment rose to US$29 million (£22.97m) from a loss of US$5 million (-£3.96m) noted in Q4 2022.
Affirmed Caesars Entertainment CEO Tom Reeg: “Our fourth quarter operating results demonstrated consolidated net revenue growth, reduced net loss and stable consolidated Adjusted EBITDA year-over-year.
“Results were driven by a 28 percent year-over-year increase in Caesars Digital net revenue that generated a 10 percent Adjusted EBITDA margin in the quarter.
“Full year results benefited from a 78 percent increase in Caesars Digital net revenues to approximately US$1 billion, and an over US$700 million improvement in this segment’s Adjusted EBITDA.
“These results speak for themselves,” said Reeg.
Concurrently, the company of storied brands, legendary casino resorts and an increasingly assertive sportsbook, has made major inroads into paying down its still considerable total debt of US$12.4 billion (£9.82bn).
Since Q3 2020, under Reeg’s leadership, Caesars has repaid over US$3 billion (£2.37bn) in debt and successfully closed on some US$4.4 billion (£3.48bn) of debt refinancing.
It’s a load that would crush many a competitor, but Caesars is a company with class and the vision to embrace both tradition and the digital future.
