Gambling juggernaut Caesars Entertainment has published its quarterly report for the three months ended March 31, highlighting a slight decline in revenue amid an increase in net loss. Despite the setbacks, the company remains in a strong financial position.
Caesars posted net revenue of $2.7 billion for the three-month period. This figure represents a slight decline from the $2.8 billion reported in the comparable prior-year period. Additionally, the company reported a net loss of $158 million – a figure that marks a noticeable increase from the $136 million reported in Q1 2023.
In terms of EBITDA results, Caesars experienced a decline in same-store adjusted EBITDA. In Q1 2024, that figure stood at $853 million, highlighting a significant decline from the $947 million reported a year ago. Caesars’ digital adjusted EBITDA, however, increased from a loss of $4 million in Q1 2023 to a gain of $5 million in Q1 2024.
Despite struggling a bit in Q1 2023, Caesars was able to keep many of its metrics relatively stable. In the meantime, Bally’s, one of its main competitors, swung to net loss amid a variety of setbacks.
CEO Reeg Trusts the FY 2024 Results to Be Better
Tom Reeg, Caesars Entertainment’s chief executive officer, commented on the results. According to him, Caesars’ business in Las Vegas was underpinned by the Super Bowl and international visitation for Chinese New Year, resulting in record-breaking occupancy. However, the high occupancy was offset by a lower-than-expected hold.
In addition, the company’s regional segment results, according to Reeg, reflected certain weaknesses.
Caesars also recorded lower online sports betting hold than it expected because of “unfavorable outcomes for the Super Bowl and March Madness.” Despite that, the company’s overall digital segment performed well.
Reeg concluded that his team remains optimistic about Caesars’ performance in 2024.
Moving past the first quarter headwinds, we remain optimistic toward improved operating results throughout the balance of the year.
Tom Reeg, CEO, Caesars Entertainment
The Gambling Giant Continues to Go from Strength to Strength
Speaking of Caesars’ Q1 performance, the period also saw the company secure the prestigious RG Check accreditation. The company proved the reliability of its responsible gambling practices, team member training processes, player education and protection efforts, remaining ahead of the curve when it comes to social responsibility.
In March, Caesars also penned an extension of its partnership with the National Hockey League. This arrangement provided the operator with access to NHL IP, allowing it to develop new hockey-themed games.
