Caesars Entertainment has released its latest financial results for the second quarter ended June 30th, 2024 revealing a 3.5% drop in revenues to $2.8 billion.
The company’s online operations, Caesars Digital reported the highest increase throughout the group. The report revealed a 27.7% increase in net revenues with $276 million generated during the quarter.
Second Quarter 2024 and Key Highlights
- GAAP net revenues – $2.8 billion, down 3.5% year-on-year
- GAAP net loss – $122 million, compared to net income of $920 million Q2 2023
- Same-store Adjusted EBITDA – $1 billion, no change from Q2 2023
- Caesars Digital Adjusted EBITDA – $40 million, up 263.6% year-on-year ($11million)
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented:
“On a consolidated basis, the Company generated $1 billion of Adjusted EBITDA. Our operating results reflect year over year growth in Adjusted EBITDA in our Las Vegas segment driven by record same store revenues, hotel occupancy and Average Daily Rate (ADR). Our Caesars Digital segment posted a new second-quarter Adjusted EBITDA record, driven by strong revenue growth and solid flow through. Regional segment results reflect competition in new markets partially offset by our temporary facility in Danville, Virginia and our property in Columbus, Nebraska.
We remain optimistic for the balance of 2024 driven by strong operating trends in our Las Vegas and Caesars Digital segments and the expected openings of the permanent facility in Danville coupled with our $430 million capital investment in our newly rebranded Caesars New Orleans property.”
Bret Yunker, Chief Financial Officer added:
“Our debt reduction plan continued in the second quarter, with Term Loan B repayments of over $100 million. We continue to forecast 2024 full year capital expenditures of $800 million, excluding our Danville project which is funded within the joint venture”
Sports Betting Expansions
Earlier this month the company announced that its mobile sports wagering platform, Caesars Sportsbook, would expanding its reach across Washington, D.C. from July 17th, 2024. This saw the company expand its services beyond the area surrounding the Capital One Arena, the location of Caesars retail sportsbook in the city.
July also saw Caesars announce that it had agreed a deal to acquire of ZeroFlucs Group Pty Ltd, a provider of software that enables sports betting operators to augment pricing offerings while leveraging existing data sources and relationships. No details were released regarding the financial details of the acquisition.
An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.
Caesars Entertainment Corporation, one of the largest casino and entertainment companies in the world, recently reported a 3.5% decrease in net revenues for the second quarter of 2024. This news comes as a surprise to many industry analysts and investors, as Caesars has been experiencing steady growth in recent years.
The decrease in net revenues can be attributed to a variety of factors, including increased competition in the gaming industry, economic uncertainty, and changing consumer preferences. In addition, the ongoing COVID-19 pandemic has had a significant impact on the company’s operations, leading to reduced foot traffic and lower spending at its properties.
Despite the decrease in net revenues, Caesars remains optimistic about its long-term prospects. The company has been investing heavily in new properties and expanding its presence in key markets, such as Las Vegas and Atlantic City. In addition, Caesars has been focusing on diversifying its revenue streams by expanding its non-gaming offerings, such as restaurants, entertainment, and hotel accommodations.
In response to the challenging operating environment, Caesars has also been implementing cost-saving measures and efficiency improvements to help offset the decline in revenues. The company is confident that these initiatives will help it weather the current storm and position it for future growth.
Overall, while the decrease in net revenues for the second quarter of 2024 is disappointing, Caesars Entertainment Corporation remains a strong player in the gaming and entertainment industry. With its strategic investments, focus on diversification, and cost-saving measures, the company is well-positioned to navigate the challenges ahead and emerge even stronger in the long run.
