Operator News
US – Caesars narrows its losses as Q2 revenue hits the $1bn mark
By Phil - 7 August 2017
Casino giant Caesars has narrowed its net losses for the second quarter to $1.4bn from $2bn last year, with net revenues increasing by one per cent to hit the $1bn mark.
The Las Vegas-based operator said the revenue increase was due primarily to ‘improved volumes across most properties, strong hotel performance in Las Vegas and incremental revenues from operational initiatives.’
Mark Frissora, President and Chief Executive Officer said: “”In the second quarter, stronger gaming fundamentals across most of our properties were offset by expected unfavorable year-over-year hold, primarily in baccarat, and the impact of more hotel rooms off the market for renovation. Despite these second-quarter headwinds, we have seen improved performance in the third quarter and believe we are on track to surpass our initially disclosed 2017 full-year EBITDAR projections by at least $40m before the anticipated deconsolidation of Horseshoe Baltimore. We currently expect to complete the restructuring of CEOC and the merger of Caesars Entertainment and Caesars Acquisition in the first week of October, which will allow us increased flexibility to prudently invest in growth.”
The company’s controversial restructuring has seen its casino ownership divided between different companies.
CERP owns six casinos in the United States and The LINQ promenade, along with leasing Octavius Tower at Caesars Palace Las Vegas to CEOC and gaming space at The LINQ promenade to CGP.
Net revenues for the second quarter of 2017 was $570m, up 1.4 per cent primarily due to increased revenues associated with operational initiatives, higher gaming volumes and increased hotel cash revenues. Casino revenues was relatively unchanged from the prior year with higher gaming volumes offset by unfavourable year-over-year hold.
CGP owns six casinos in the United States, primarily in Las Vegas, as well as CIE. CIE owns and operates regulated online real money gaming and the WSOP tournaments and brand.
Net revenues for the second quarter of 2017 was $435m, relatively unchanged year-over-year. CGP gross gaming revenues decreased primarily due to weaker gaming volumes in Baltimore, despite favorable hold in New Orleans.
