CEO Tom Reeg said a potential sale of a Strip property could happen soon, in 2022
C
aesars Entertainment reported on Tuesday its financial results for the second quarter ended June 30, 2021. For Q2, the company has generated net revenues of $2.5 billion versus $127 million on a GAAP basis for the comparable prior-year period, and net income of $71 million compared to a net loss of $100 million for the same 2020 period.
“Our second quarter operating results improved significantly versus the first quarter of 2021, driven by continued strength in our regional markets and a dramatic improvement in results in our Las Vegas segment,” said Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc.
He said Tuesday that the company remains interested in selling one of its eight Strip casino properties. Speaking during a quarterly earnings conference call, Reeg said a potential sale could happen soon. “I expect that sale to take place in 2022,” he said.
Furthermore, the company announced a $1 billion investment in digital technologies. Caesars announced a company-wide push to promote its new mobile sports betting app, which includes a nationwide advertising and social media campaign. The app launched Monday and will compete with other established gambling brands, such as BetMGM. Reeg said commercials will begin airing this week during national television broadcasts.
Same-store net revenues reached $2.6 billion, and the adjusted EBITDA for Q2 was $1.0 billion. This shows adjusted EBITDA up versus $131 million for the comparable prior-year period. The company posted all-time records in quarterly adjusted EBITDA and adjusted EBITDA margin.
For the period ended June 30, a comparative same-store basis includes the results of operations of Caesars combined with William Hill US prior to the consummation of the acquisition on April 22, 2021, and the operations of Caesars Entertainment Corporation (“Former Caesars”) prior to the closing of the acquisition of Former Caesars on July 20, and eliminates results of operations for properties that have been divested.
In the Las Vegas segment, the company reported same-store revenues of $855 million and same-store adjusted EBITDA of $423 million for the quarter, while on the Regional segment, same store revenues were $1.5 billion and same-store adjusted EBITDA reported $621 million.
“With the William Hill acquisition now closed, we have officially rebranded our sports betting operations to Caesars and we launched our new comprehensive marketing campaign on August 2, 2021,” commented Reeg.
Other highlights of the report include $117 million same-store net revenues and $2 million same-store adjusted EBITDA for Caesars Digital, the company’s sports betting and online gaming segment.
“We anticipate that our balance sheet will be further enhanced through improved operating trends and expected asset sale proceeds. We paid down $325 million of debt during the quarter and remain committed to further debt reduction,” added Bret Yunker, Chief Financial Officer.
