Caesars Entertainment sees revenue fall in Q3
The casino operator has also announced a deal to sell the LINQ Promenade.
US.- Caesars Entertainment has reported financial results for the quarter ended September 30. Revenue was $2.9bn, a decrease of 2.6 per cent compared to the same period last year. The company recorded a net loss of $9m, contrasting with a net income of $74m in the same period last year.
Las Vegas operations generated $1.06bn in revenue for the quarter, a slight decrease of 1.3 per cent. Caesars’ digital segment showed substantial growth during the quarter, with revenue up 40.9 per cent. Caesars Digital achieved $52m in adjusted EBITDA, a significant increase from $2m in Q3 2023, marking the company’s highest quarterly figure to date in this area.
Regional revenues faced a sharper decline, falling 7.6 per cent to $1.45bn. The company cited increased competition in key markets as well as disruptions from construction projects as major factors impacting this segment’s performance.
Caesars CEO Tom Reeg said during the earnings call: “We expected to be flat to up for the third quarter and we ended up being down about $10m in EBITDA. That’s all table-hold related. Our non-gaming revenue and cash flow were records and our slot handle and win were flat. It wasn’t poor table hold; it was within our range of expectations. But it just wasn’t as strong as last year.”
See also: Caesars unveils $435m transformation of New Orleans hotel and casino
Caesars Entertainment announced an agreement to sell the LINQ Promenade to a joint venture to be formed between TPG Real Estate and the Investment Management Platform of Acadia Realty Trust for $275m. The sale is subject to customary approvals and other closing conditions and is expected to close during the fourth quarter 2024.
Reeg said: “The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals. I want to thank all the team members and the tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success.”
Caesars also announced that it has closed the $500m sale of the World Series of Poker rights to NSUS Group. The deal includes half of the payment in cash while the other $250m is a promissory note to be paid in five years. Caesars retains the ability to host the poker event at its Las Vegas casinos and receives preferential rights for other WSOP events at its properties. Caesars also keeps the branding at poker rooms.
