In the third quarter of 2023, Caesars reported GAAP net revenue of $3.0bn, showing growth of 3.4% from $2.9bn in the comparable prior-year period. The company's GAAP net income reached $74m, marking an impressive improvement of 42.3% compared to a net income of $52m during the same period last year.
Additionally, consolidated adjusted EBITDA reached $1.04bn, reflecting a notable increase of 3.0% from $1.01bn in the comparable prior-year period.
Noteworthy is the performance of Caesars Digital, which reported adjusted EBITDA of $2m, a substantial increase from the previous year when it was at a negative $38m.
Tom Reeg, CEO of Caesars Entertainment, commented on the results, highlighting the growth in all three primary operating segments: Las Vegas, Regional and Caesars Digital. The Regional segment, in particular, achieved an all-time quarterly Adjusted EBITDA record.
In the past year, Caesars has seen consistent growth in its financial reports. In 2022, the company generated $1.5bn in total revenue, representing a year-over-year growth of 23.2%. The performance was attributed to strategic initiatives such as the acquisition of the MGM Grand/Mandalay Bay joint venture and partnerships with Canyon Ranch, Century Casinos, and Hard Rock.
In Q2 2023, Caesars also displayed strong financial performance, reflecting the company's growth trajectory. With a 2.4% annual revenue increase, the company's total net revenue reached $2.9bn.
A significant portion of this revenue came from Caesars' regional properties, which amounted to $1.5bn, showing a 1.0% growth compared to Q2 2022.
Caesars Digital also continued its upward trajectory with a remarkable 42% year-over-year increase, generating $216m in revenue during Q2 2023.
These results come after Caesars reported a net loss of $136m in Q1 2023, despite a 21% increase in revenue.
The company attributed the loss to expenses in various departments, including casino revenue, food and beverage, hotel revenue and other sources. However, EBITDA for the period surged to $958m, a significant increase of 223% from the $296m reported in Q1 2022.
Also, the company is working to build upon its performance through various partnerships, including collaborations with White House Studios, Inspired Entertainment and Konami Gaming.
In addition to financial performance, Caesars has been actively expanding its presence in the sports betting industry. The company launched its sports betting app in Puerto Rico, registered as 'Caesars Sportsbook at Casino Metro.' This move is part of Caesars' strategy to capitalize on the growing sports betting market.
Furthermore, Caesars is poised for further growth with the upcoming launch of its flagship sports wagering app, Caesars Sportsbook, in Kentucky. The company is offering a special early deposit offer to attract new customers.
Caesars' competitor, BetMGM, a joint venture between MGM Resorts and Entain, reported impressive financial results for H1 2023. The company's net revenue reached $944m, representing a substantial 55% increase compared to H1 2022's total of $608m.
The achievement marked a significant milestone for BetMGM, and its performance in Q2 2023 was particularly noteworthy. BetMGM's cost per acquisition (CPA) percentage per state decreased by 8%, while the sportsbook expanded its operations to Massachusetts, Ohio and Puerto Rico, bringing the total number of North American provinces and states it serves to 26.
BetMGM also expressed optimism about its full-year revenue, expecting to generate between $1.8bn and $2bn due to the strength of its H1 results. Notably, BetMGM announced that it would not require further equity investment from MGM Resorts or Entain, as it aims to become self-sufficient in H2 2023.
