Caesars records net loss of $278m for FY2024, net revenue reported to be $11.2bn
The net loss represents a decrease of 135.4% year-over-year, primarily attributed by the release of $940m of valuation allowance against deferred tax assets associated with REIT leases in 2023.
Key points:
– During the fourth quarter of 2024, Caesars’ total revenue decreased by 1% year-over-year for a total of $2.8bn, as Las Vegas and Regional operations accounted for over $2.4bn during the period
– Despite decreases in revenue from Las Vegas and Regional operations during both Q4 2024 and FY, Caesars Digital managed to increase its FY2024 revenue by 19.5% from the prior year period
Caesars Entertainment reported a net loss of $278m during full year (FY) 2024, representing a decrease of 135.4% year-over-year while net revenue decreased by 2.5% from the prior year period for a total of $11.2bn. During Q4 2024, however, net revenue decreased by just 1% from the prior year period to $2.8bn, while Caesars managed to generate a net income of $11m for Q4 2024, rising from the $72m net loss reported during the prior year period.
The operator’s adjusted EBITDA also decreased from the prior year period during FY2024, falling by nearly 5.1% year-over-year for a total of $3.7bn. Throughout FY2024, Regional and Las Vegas operations accounted for the majority of Caesars’ net revenue, having generated $5.5bn and $4.3bn, respectively, but the figures still represent decreases of 4.1% and 4.4%.
Caesars Digital continued its trend of increasing revenue year-over-year by reporting a total of $1.2bn throughout FY2024, equating to an increase of 19.5% from the prior year period. The segment reported $302m of revenue during Q4 2024, which is just $2m less than the figure generated during the fourth quarter of 2023.
Caesars’ adjusted EBITDA during Q4 2024 was $885m, representing a decrease of 4.8% from the prior year period. Las Vegas and Regional operations both saw decreases in adjusted EBITDA of over $100m from the prior year period, while Caesars Digital was able to increase its adjusted EBITDA by nearly $80m year-over-year for Q4 2024.
Despite reporting the notable decrease in net income, Caesars’ share price is still reported to be at $34.87 per share, decreasing by just 0.5% on February 25 following the announcement.
Good to know: Bragg Gaming and Caesars Entertainment entered into a technology platform and exclusive games development partnership on January 14
“Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs; and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter. Caesars Digital was negatively impacted by sports betting customer friendly outcomes in both October and December offset by over 60% growth in iGaming net revenues,” Caesars CEO Tom Reeg said.
“As we look ahead to 2025, the brick and mortar operating environment remains stable and we are expecting another year of strong net revenue and Adjusted EBITDA growth in our Digital segment. When combined with lower capex and cash interest expense, 2025 is expected (to) deliver significant free cash flow which we expect will be used to further reduce leverage.”
Operating expenses managed to decrease by over $100m year-over-year for Caesars, but operating income throughout FY2024 still decreased by 6.8% from the prior year period for a total of $2.3bn.
The operator’s casino operations generated the majority of Q4 2024 revenue, accounting for $1.6bn during the period and $6.3bn throughout FY2024. Hotel operations decreased by $15m year-over-year to generate $494m of revenue during Q4 2024, as well as accounting for $2bn of Caesars’ total revenue for FY2024.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
