Reporting a Loss of Only US$123m in Q2, Less is More for Caesars Entertainment
Citing losses of US$123 million (£101.77m/€120.83m) for Q2 that would fell mere mortals, Caesars Entertainment, among the gods of the gaming world, remains upbeat about its rest-of-year prospects.
The Vegas post-Covid bricks-and-mortar bounce-back continues, while losses were attributed to continued poor profitability of “provincial” casino operations and massive marketing spend on fiercely competitive sportsbook and iGaming operations.
Although the casino and resort operator posted revenue of US$2.82 billion in the quarter (£2.33bn/€2.77bn), beating Wall Street expectations; earnings per-share, at 16 cents, were nine cents a share less than forecast by analysts.
Operations in Sin City generated US$1.1 billion in net revenue (£910m/€1.08bn) for the world’s biggest gaming group during the second quarter, a year-on-year increase of over 30 per cent.
And Adjusted EBITDA for Vegas amounted to US$547 million (£452.6m/€537.32m), up 29.3 per cent, compared to the same period in 2021.
But across the group it was down 3.3 per cent overall, with “regional”, non-Vegas, retail operations experiencing a 15 per cent year-on-year fall to US$513 million (£424.47m/€503.92m) and Caesars Digital recording an EBITDA loss of US$69 million (£57.09m/€67.77m).
Nevertheless, Caesars CEO Tom Reeg remained upbeat.
He said: “Operating results in our digital segment improved dramatically versus the first quarter, and we are optimistic regarding trends in this segment for the balance of the year.
“Our second quarter results reflect a consolidated EBITDA record for our brick-and-mortar properties led by an all-time quarterly EBITDA record in Las Vegas and continued strength in our regional markets when compared to 2019.”
Much, also, is riding on the imminent kick-off of the NFL season.