Caesars’ online arm helps boost net revenues for Q1

Caesars Entertainment Corporation (CEC) said growth in its online division’s social and mobile games business helped drive a 7% year-on-year increase in net revenues to $1.17bn for continuing CEC operations for the three months ended 31 March.

Casino revenues descended 2% to $530m and Caesars Interactive Entertainment (CIE), the online division, reported improved net revenues, totalling $228m, an upturn of 29%.

Mark Frissora, who took over as CEC president and CEO in July, said that the operator achieved record adjusted EBITDA margins for the quarter, which went up by “over 200 basis points due to higher hospitality revenue growth”.

Adjusted EBITDA was $349m, up 16%, while property EBITDA went up 8% to $336m.

Less favourable figures were reported for basic and diluted earnings per share, which were both negative $2.12, and a net loss of $308m.

CEC results are no longer consolidated with the results of Caesars Entertainment Operating Company (CEOC) and its subsidiaries after it filed for Chapter 11 bankruptcy in January last year, though some CEOC figures were reported separately, such as a net loss attributable to Caesars of $85m.

The cost of restructuring and deconsolidating CEOC and other parts of the company was $237m for the quarter.