Revenue remains steady for Caesars but losses widen in third quarter
Las Vegas occupancy levels drop by five per cent
A soft summer in Las Vegas saw third-quarter revenues remain steady at $2.9bn, but losses widened to $55m, compared to a net loss of $9m.
The gambling capital of the world saw less visitation with Caesar’s hotel occupancy down to 92 per cent versus 97 per cent last year, and Average Daily Revenues decreasing five per cent as a result of citywide visitation weakness during the quarter.
Tom Reeg, Chief Executive Officer of Caesars Entertainment, commented: “Our Las Vegas segment Adjusted EBITDA declined during the quarter due to lower city-wide visitation and poor table games hold. Volumes in our Caesars Digital segment were strong, driven by continued product improvements while Adjusted EBITDA was negatively impacted by lower-than-expected sports hold during September. As we look to the fourth quarter, we anticipate improved operating performance given stronger occupancy in Las Vegas, continued momentum in our Caesars Digital segment and stable operating trends in our regional portfolio. Our regional portfolio delivered net revenues and Adjusted EBITDA growth as a result of consistent operating trends and continued positive returns from our capital projects. ”
President and Chief Operating Officer Anthony Carano said: “We are seeing sequential improvement in operating trends in Las Vegas as we enter the fourth quarter. Regional revenues were up year over year driven by strong returns in Danville and New Orleans and same-store net revenue growth resulting from continued strategic reinvestment in our Caesars Rewards customer database. Regional EBITDAR grew four per cent on a hold normalized basis during the quarter. Starting in our Las Vegas segment, we reported same-store adjusted EBITDAR of $379 million and hold normalized EBITDAR of $398m. Segment
“During the third quarter, our Digital segment delivered strong volume growth in both sports and iCasino. Adjusted EBITDA in our digital segment was negatively impacted by NFL hold in September and faced a difficult comparison to last year which included WSOP Results. Our Las Vegas segment posted solid results in the face of softer market-wide visitation and adjusted for poor table games hold.
Caesars said that as it progressed through the quarter, trends improved sequentially with September delivering the strongest results of the quarter.
Mr Carano added: “We are excited about upcoming CapEx projects in Las Vegas including a new Omnia Day Club by Tau at Caesars Palace, the rebrand of the Cromwell to the Vanderpump Hotel, and the recently announced Project 10 by Luke Combs that will transform the vacant Margaritaville space at the Flamingo. These exciting projects continue our commitment to reinvest in our assets, while elevating our guest experiences. As we look to the fourth quarter in Las Vegas, we see trends improving sequentially driven by positive leisure trends, and a strong group and convention calendar.
“New projects in Danville and New Orleans continue to generate strong returns. We look forward to completing Phase two of the master plan currently underway at Caesars Republic Lake Tahoe in mid-2026.”
During the third quarter, Caesars Digital delivered net revenue of $311m, adjusted EBITDA of $28m, and hold normalized adjusted EBITDA of $40m.
President, Caesars Sports and Online Eric Hession said: “Last year in Q3 2024, we benefited from approximately $8 million of net revenue and EBITDA contribution from the World Series of Poker. The World Series of Poker was sold in Q3 of last year and so now we fully annualize the impact of the sale on our EBITDA comparison.
“In addition to the effect of the poor hold and the loss of the World Series of Poker revenues impact on flow through, we had a number of other headwinds this quarter that included incremental state taxes, higher acquisition marketing spend, and some bad debt. As we previously noted, there will be volatility across quarters. We’re on track to exceed our 50 per cent target flow through for the year.”
