Caesars Entertainment has reported total net revenue of $2.83 billion for the second quarter of 2024, marking a marginal 0.1% decline compared to the previous year.
The company registered a net loss of $122 million, compared to net income of $920 million in the same period last year, primarily due to a significant $940 million release of valuation allowance against deferred tax assets related to its Real Estate Investment Trust (REIT) leases the prior year.
Same-store adjusted EBITDA for the quarter reached $1 billion, reflecting a slight increase of 0.6%. Meanwhile, Caesars Digital saw a robust 27.8% revenue growth, totaling $276 million. Adjusted EBITDA for the digital business, a new second-quarter record, stood at $40 million versus $11 million for the comparable prior-year period.
The Las Vegas business contributed significantly, generating $1.1 billion in revenue, buoyed by improved same-store revenues, higher hotel occupancy, and increased Average Daily Rate (ADR). In contrast, the regional segment faced challenges from new market competition, although operations in Danville, Virginia, and Columbus, Nebraska provided some offset, bringing in just under $1.4 billion in revenue.
“We remain optimistic for the balance of 2024 driven by strong operating trends in our Las Vegas and Caesars Digital segments and the expected openings of the permanent facility in Danville coupled with our $430 million capital investment in our newly rebranded Caesars New Orleans property,” said Tom Reeg, Chief Executive Officer.
Caesars completed the acquisition of WynnBet’s Michigan iGaming operations during the quarter. The company also launched legal mobile sports betting in North Carolina and entered the Kentucky market.
As of June 30, 2024, Caesars reported $12.4 billion in aggregate principal debt and total cash and cash equivalents of $830 million. The company maintains a revolving credit facility with a capacity of $2.2 billion, partially offset by commitments to letters of credit and regulatory requirements.
The company’s executives highlighted the positive impact of room renovations with Paris Las Vegas witnessing average daily room rates up $65 year over year, a 60% lift. Officials called it “the most successful hotel renovation in the history of Caesars.”
However, challenges in some regional markets, including construction disruptions in New Orleans and reduced group sizes in Reno, were also noted. New Orleans construction will be completed by Labor Day, executives added.
Caesars reported a notable financial contribution from the World Series of Poker (WSOP), which delivered a record windfall. This annual event generated between $20 million and $25 million in EBITDA.
“This was our best World Series ever from a financial perspective,” Reeg told Wall Street analysts. “It filled a lot of rooms on the east side of the Strip at a time when it’s almost 120 degrees here. It’s a significant amount of gamblers in the house and we see benefits in our hotel and food and beverage and at our table games and slots.”
Meanwhile, Caesars President Anthony Carano said Las Vegas group bookings continue to pick up for 2025, with a mid-teens increase, after increasing by mid-single-digits in 2024.
Original article: https://www.yogonet.com/international/noticias/2024/07/31/73807-caesars-posts-283-billion-q2-revenue-with-strong-digital-growth-solid-las-vegas-performance
