Key points:
- Total revenue fell by 2.6% to $2.9bn compared to Q3 2023
- Regional revenue declined 7.6%, impacted by competition and construction activities
- Digital segment revenue grew by 40.9%, with adjusted EBITDA reaching $52m
- Caesars has also completed the sale of WSOP to GGPoker for $500m, while enterting into an agreement to sell Linq Promenade
Caesars Entertainment has reported a $9m net loss for the third quarter of 2024, contrasting with a net income of $74m in the same period last year.
Total revenue for the quarter was $2.9bn, down 2.6% year-on-year. Despite broader revenue declines, the company’s Las Vegas operations posted relatively stable results, with revenues of $1.06bn, a slight decrease of 1.3%.
Regional revenues faced a sharper decline, falling 7.6% to $1.45bn. The company cited increased competition in key markets as well as disruptions from construction projects as major factors impacting this segment’s performance.
Caesars’ digital segment showed substantial growth during the quarter, with revenue up 40.9%. Caesars Digital achieved $52m in adjusted EBITDA, a significant increase from $2m in Q3 2023, marking the company’s highest quarterly figure to date in this area.
Expanded digital offerings, particularly in mobile sports betting and online gaming, contributed to this improvement, highlighting the company’s strategic focus on digital markets.
Good to know: In October, Caesars completed a $1.1bn refinancing, which is expected to result in interest expense reductions in 2025. Additionally, the company received $250m in proceeds from the recent sale of its World Series of Poker (WSOP) brand, funds earmarked for key projects including the renovation of Caesars New Orleans and the establishment of a permanent Caesars Virginia location
The Managed and Branded properties segment, which includes branded properties not directly owned by Caesars, generated $68m in Q3 2024, down 30.6%.
As of 30 September 2024, Caesars reported a total outstanding debt of $12.7bn. The company’s liquidity resources included $802m in cash and equivalents, bolstered by a revolving credit capacity of $2.04bn.
The third-quarter results follow Caesars’ Q2 report, in which the company posted a $122m net loss, largely attributed to deferred tax asset adjustments. Q2 also saw Caesars’ revenue from the Las Vegas segment rise on improved hotel occupancy and daily rates, though regional performance faced similar competitive pressures.
