Caesars sees net revenue rise in Q1
The Las Vegas company reported US$1.97 billion in net revenue during the first quarter of the year.
US.- Caesars Entertainment Corp announced that first-quarter net revenue experienced a significant increase, posting US$1.97 billion during the first quarter of 2018, a number that is more than two times higher than the one registered last year.
Executives from the company said that the emerging from bankruptcy of Caesars Entertainment Operating Company (CEOC) helped with the results. First quarter net revenues of US$1.97 billion and adjusted EBITDA of US$518 million increased year-over-year since CEOC’s results are not included in the prior year. The company also experienced robust gaming volumes in Las Vegas, driven by the strongest Chinese New Year volumes registered in five years.
Mark Frissora, President and Chief Executive Officer, said: “I’m pleased to report that Caesars Entertainment delivered solid operating performance in the first quarter, reflecting progress on our marketing initiatives, continued success in driving operating efficiencies and strong execution on our growth initiatives.”
Moreover, Chief Financial Officer Eric Hession, said: “Same-store commentary include CEOC results and exclude the Horseshoe Baltimore from the prior year. Same-store net revenues were down 2% year-over-year to $1.97 billion. Las Vegas net revenue was $906 million, down 2.6% versus the prior year quarter-to-date due to unfavourable hold of $19 million per year and the CON/AGG convention not recurring this year.”
Moreover, the executive said that for the full year, they expect to generate adjusted EBITDAR of between US$2.37 billion and US$2.42 billion, which assumes a closing date of July for the Centaur acquisition. “This range also includes a negative impact of approximately US$40 million from the increased competition in Atlantic City. Depending on when and how many competitors open, this number could change as we continue to monitor the progression of that competitive environment.”
“We believe that our company is well positioned for sustained growth in the coming quarters and years. We have a number of exciting growth projects, improving strengths in our core business and solid operating cost discipline,” added Hession.
