Caesars Entertainment has shared its financial report for the fourth quarter and full year of 2022. For Q4, the US casino giant saw net revenues of $2.8 billion, up from $2.6 billion in the same quarter the prior year. The company also managed to cut its net loss from $434 million in the fourth quarter of 2021 to $148 million in Q4 2022.
As for the full year, the business delivered net revenues of $10.8 billion, up from $9.6 billion for the entire year of 2021. Caesars’ net loss was also reduced on a yearly basis, cut from $1 billion in 2021 to $899 million during the last year.
Tom Reeg, CEO of Caesars Entertainment, commented: “Our fourth quarter delivered another set of strong operating results as both our Las Vegas and Regional segments each set a new fourth quarter record for Adjusted EBITDA. Additionally, our Las Vegas segment set a new full-year record for Adjusted EBITDA.”
Reeg also pointed out that the Caesars Sportsbook vertical delivered “significantly improved” operating results during the fourth quarter, which sets the foundation for “a strong 2023.” Additionally, he noted consumer demand remains strong “in all of our verticals” and that the company is “optimistic for the year ahead.”
Tom Reeg
“We permanently reduced total debt by over $1.2 billion during 2022, resulting in total leverage as calculated under our bank credit facility of 4.4x as of December 31. In addition, we successfully extended $7.5 billion of debt facilities maturing in 2024 and 2025 through a $3 billion bank syndication completed in October, and $4.5 billion of debt capital markets issuance which closed in February 2023,” added Bret Yunker, CFO.
During a fourth-quarter earnings call on Tuesday, analysts asked about a technical glitch that brought down the Caesars-owned William Hill sportsbook app on Super Bowl, leaving bettors unable to wager for three days. Management said it has moved past the meltdown of the app, with Reeg noting old technology was the issue and that it was “in the rearview mirror.” The company intends to upgrade the app’s platform before the next football season.
Despite the poorly-timed glitch, the operator expects strong results in 2023. Executives with the Reno-based casino giant said strong occupancy and higher average daily room rates are driving record hotel and food and beverage results reminiscent of pre-pandemic levels, reports Las Vegas Review-Journal.
Occupancy rates in Q4 hit 95.5%, reaching 2019 levels for the first time, Senior Vice President of Finance Brian Agnew said. In Vegas, group demand increased in the quarter, representing 16% of occupied room nights. Caesars leadership highlighted group and convention demand as a segment with plenty to look forward to this year. Group room rates are “high-single digits” above 2019 levels in forward bookings so far, Reeg noted, as per Review-Journal.
Caesars Sportsbook
On the online gaming side, officials said they are focused on developing Caesars Digital, its sportsbook and iCasino verticals. It nearly broke even after multiple quarters of net losses, which Reeg attributed in part to the company’s high-profile loss to Houston furniture store owner Jim “Mattress Mack” McIngvale during the World Series.
The Caesars Sportsbook added a combination of retail and online wagering options in Puerto Rico, Kansas and Maryland in Q4 2022, in addition to launching online and retail sports betting in Ohio on January 1 of this year. Its presence is now in 29 North American jurisdictions, with 21 offering mobile.
The book is expected to become operational in Massachusetts next month, as the state eyes March for the debut of its online sports wagering market. Caesars also plans to release a standalone iCasino app in available markets during the second half of 2023. Currently, online casino games can be played through the sportsbook app.
Caesars Entertainment missed analyst projections for the fourth quarter of 2022. The business delivered Q4 earnings per share of ($0.70), which were $0.89 worse than the analyst estimate of $0.19. Meanwhile, revenue for the quarter matched analyst consensus, coming in at $2.8 billion. Caesars shares, traded on the Nasdaq, closed Tuesday at $51.22, down 2.99%. Shares fell another 1.6% in after hours trading to $50.40 a share.
