Operator News
US – Caesars third quarter revenues reach $3bn with record Adjusted EBIDTA
By Phil - 2 November 2023
Caesars Entertainment has generated third quarter revenues of $3bn versus $2.9bn last year, setting an all-time consolidated Adjusted EBITDA record if $1.04bn.
Revenue for the first nine months of the year has increased by 8.9 per cent compared to the same period in 2022,coming in at $8.70bn.
Anthony Carano, President and Chief Operating Officer, said: “We delivered the strongest consolidated adjusted EBITDA quarter in the history of the company, led by a new all-time quarterly adjusted EBITDA record in our regional markets, profitability in our digital segment and continued strength in our Las Vegas segment. All three segments grew adjusted EBITDA year-over-year.
Regarding Las Vegas, he said: “Demand trends remained healthy during the third quarter with occupancy increasing to 96.6 per cent versus 93.6 per cent in the prior year. Total Las Vegas segment revenues were up four per cent, driven by higher occupancy and higher ADRs, which drove record cash hotel revenues, record gaming revenues and record food and beverage revenues. Excluding real payments, our Las Vegas segment generated $494 million of adjusted EBITDA with a margin of 44 per cent.
“As we look to the remainder of the year, Las Vegas continues to benefit from strong leisure and casino guest demand, a robust events calendar and the continued strength of the group and convention segment. We’re looking forward to the inaugural F1 race in November, the culmination of significant planning and infrastructure improvements executed by the city, in order to deliver a great event.
“Heading into ‘24, we are also excited for Las Vegas to host the Super Bowl in February, in addition to many other new and exciting events planned throughout the year. Las Vegas continues to benefit from one of the strongest event calendars in the United States,” Mr Carano added.
In Caesars’ regional segment, revenues were up two per cent versus last year, and adjusted EBITDA grew to $575m, the best regional quarter on record. The group said that stable guest demand, combined with excellent performance from its completed capital projects and newly opened facilities helped to offset competitive pressures in a few of our markets.”
Caesars is anticipating a Q4 opening for its Harrah’s Hoosier Park property expansion, and expects to have the new Versailles Tower rooms in Vegas, online by the end of the year.
Mr Carano added: “2024 is a busy year, and we expect to complete the permanent facilities in Danville, Virginia and Columbus, Nebraska, as well as the new hotel tower and completely remodeled Caesars New Orleans project. We are looking forward to a strong finish to 2023. Consumer demand remains strong, and our capital projects are winding down.” We will continue to remain focused on operating cost efficiencies, harvesting returns on project capital and driving long-term EBITDA growth.”
Tom Reeg, Chief Executive Officer of Caesars, added: “During the third quarter of 2023, the Company achieved an all-time consolidated Adjusted EBITDA record. We experienced Adjusted EBITDA growth year over year in all three of our primary operating segments including Las Vegas, Regional and Caesars Digital. Our Regional segment achieved an all-time quarterly Adjusted EBITDA record as we harvest the recent portfolio investments within this segment.”
There was also a second consecutive quarter of EBITDA profitability in the company’s Digital segment. During the quarter, online sports betting handle increased 14 per cent and iCasino handle improved 38 per cent.
Eric Hession, President, Caesars Sports and Online Gaming, said: “Revenues were negatively impacted by lower year-over-year hold in both our online sports betting and iCasino segments, which we believe to be temporary. We continue to remain balanced with our promotional spend during the quarter with a focus on investing in our best customers, resulting in an overall promotional spend being among the lowest in the industry.”
“During the quarter, we delivered our new stand-alone iCasino app, Caesars Palace Online, the product features enhanced game content and functionality in addition to facilitating segmented marketing. The results of which drove monthly GGR and NGR in its first full month of operation to a record. We anticipate realizing increasingly positive results in the months ahead.
“Turning to online sports betting. We launched several new product features for football, including SGPs for NCAA, a live streaming product for nationally broadcast NFL games, a bet with reward credits feature and improved payment options.”
Caesras now offers sports betting in 30 North American jurisdictions, 24 of which offer mobile wagering. It also operates online gaming in six jurisdictions.
