Caesars net revenue up 3.8% in Q3 2017
Worldwide casino heavyweight Caesars Entertainment Corporation has reported a 3.8% year-on-year rise in its net revenues during the third quarter of 2017.
In its penultimate financial filing of the year, the company reported net revenues of $939m bettering the $905m received during the same period of 2016. The company declared a net loss of $460m during the period, which was primarily the result of the restructuring of the Caesars Entertainment Operating Company.
The restructuring took place after Caesars Entertainment Operating Company filed for Chapter 11 bankruptcy protection in January 2015 after being reportedly over $24bn in debt. Under the terms of the restructuring deal, Caesars Acquisition Company & Caesars Entertainment Corporation were merged into the larger firm of Caesars Entertainment Operating Co. Inc.
Operational income during the period shot up from a $44m loss in Q3 2016 to over $81m in Q3 2017, a rise over $137m year-on-year. Caesars adjusted earnings before interest taxation depreciation and amortisation jumped 17.7% to $293m from its previous Q3 2016 total of $249m.
In a statement accompanying the results, Caesars Entertainment Corporation President and Chief Executive Officer Mark Frissora said: “Revenue growth accelerated in the third quarter, led by a 10.4% improvement in Caesars Palace gaming revenue”
“Despite $10-15 million of unfavourable year-over-year hold, our GAAP operating income and enterprise-wide adjusted EBITDA margins improved to 8.7% and 29.2%, respectively, supported by increased gaming volume across our domestic properties, solid hospitality performance, and improved labour productivity.”
“We were also pleased to have completed the restructuring of CEOC and merger with CAC on October 6, simplifying our business and allowing us to turn our full attention to our growth initiatives,”
Looking to the future, Frissora added: “Our future appears bright with a much improved balance sheet, approximately $2 billion in cash, and strong free cash flow. We are well positioned to continue to invest in our core business and pursue a more diversified growth strategy.”
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