Casino operator Caesars Entertainment Corporation released its third quarter financial results, ending 30 September 2016, on Monday. The results did not include revenue from Caesars Entertainment Operating Company (CEOC) or its subsidiaries.
CEOC filed for reorganisation under Chapter 11 bankruptcy in January 2015. A restructuring plan was agreed upon with creditors in October 2016 which should conclude the bankruptcy case in 2017.
After a $2bn second quarter loss, Caesars managed to gain net revenue of $986 million in the third quarter, a 3% year-on-year increase. This was credited to the company’s Las Vegas market, which is their largest, performing strongly. Poor performance in the Atlantic City and New Orleans markets dampened the effect and casino revenue amounted to $542 million for the quarter.
Year-on-year the operator suffered a $44 million loss compared to income of $84 million in the third quarter of 2015. The drop was attributed to the sale of Caesars Interactive Entertainment stock-based compensation awards rising due to the i-gaming division’s sale of SMG Business in August.
Property EBITDA was announced as $287 million, a 9.5% year-on-year rise for the same period. The growth was attributed to increased revenue and efficiency initiatives.
Mark Frissora, President and Chief Executive Officer of Caesars Entertainment commented: “We achieved another solid quarter of performance, with a 3 percent increase in revenues paced by strong results in Las Vegas, our largest market.
“We also continued to expand margins, a testament to the progress we have made to manage costs effectively while delivering enhanced customer service. Going forward, we remain focused on driving a balanced agenda of revenue growth and productivity gains to increase margins and cash flow. Our progress year to date gives us confidence that we are on the right path as we strive to maximize value for our stakeholders."