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Caesars Entertainment records $2bn Q2 loss

Caes

CaesarsPalace
ars Entertainment Corporation has posted a loss of more than $2bn for the three months ending 30 June, as a result of the restructuring of the bankrupt Caesars Entertainment Operating Company (CEOC).

The bankruptcy of CEOC, Caesars’ main operating unit, means that what Caesars Entertainment refers to as “Continuing CEC” has been uncoupled from contributions made by CEOC’s casino properties in the operator’s financial results.

The operator reported net revenue of $1.2bn for continuing CEC in Q2, an 8% increase year-on-year.

A total of $545m was posted for casino revenue, expanding 0.4% from the $543m figure recorded for Q2 2015.

Adjusted EBITDA for the period came to $388m, rising 12%.

Caesars Interactive Entertainment performed strongly, posting net revenue of $249m for Q2, a 34% increase on the same period last year.

Caesars Entertainment Resort Properties, which owns and operates six casinos in the United States, experienced a 0.7% year-on-year decrease in net revenue for the second quarter, dropping to $562m from $566m.

Mark Frissora, President and CEO of Caesars Entertainment, said: “We delivered solid operating performance in the second quarter, including an 8% increase in net revenue and strong income and margin results, excluding the impact of the bankruptcy-related charges and CIE stock compensation expense.

“Our second-quarter performance was driven by strong results in Las Vegas lodging, exemplified by a 6.5% increase in RevPAR, was well as entertainment and continued strength in the social and mobile gaming business.

“Additionally, our productivity efforts have improved our revenue per employee and marketing efficiency, as we drive further margin improvement and cash flow while maintaining high levels of employee and customer satisfaction.”

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