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Caesars Entertainment posts $423m net loss in Q1 as Las Vegas revenue tumbles


Caesars Entertainment reported a $423.0m net loss in the first quarter of its financial year, while the operator also suffered a 7.1% decline in net revenue for the period.

Revenue in the three months to March 31 amounted to $1.70bn, down from $1.83bn for the legacy Caesars business in the corresponding period in 2020, before it completed its merger with Eldorado Resorts.

Caesars said revenue from its operations in Las Vegas fell 39.5% year-on-year to $497.0m, but revenue from regional operations jumped 26.8% to 21.2% to $1.11bn, thanks in part to the deal.

Revenue from managed, international and the digital Caesars Interactive Entertainment (CIE) business fell 29.1% from $127.0m to $90.0m, while corporate and other revenue also slipped 20.0% to $4.0m.

Breaking this down further, revenue from casino and pari-mutuel operations amounted to $1.14bn in Q1, with food and beverage revenue at $166.0m, hotel revenue $215.0m and other revenue $178.0m.

Caesars also posted a separate set of revenue figures, combining results from its continuing operations with those of its properties it had agreed to divest, but still owned by the end of Q1, which it referred to as “same-store basis”. These results were compared with combined 2020 results from legacy Caesars and Eldorado Resorts, which combined with Caesars in July of last year.

On a same-store basis, net revenue was down 16.0% to $1.86bn, with revenue in Las Vegas falling 39.5% to $497.0m and regional revenue remaining level at $1.26bn. Managed, international and CIE revenue slipped 21.3% to $100.0m, while corporate and other revenue was down 42.9% to $4.0m.

Returning to continuing operations, total operating expenses for Q1 stood at $1.51bn, which resulted in an operating profit of $186.0m for the period.

However, after $696.0m in other expenses, including $563.0m in interest costs, this left a loss before tax of $510.0m.

Caesars received $79.0m in tax benefits, leaving a net loss from continuing operations of $431.0m. When taking into account $7.0m income from discontinued operations and $1.0m from non-controlling interests, net loss amounted to $423.0m.

The only comparison provided for these figures was with the smaller legacy Eldorado business, which made a net loss of $176m in Q1 2020, on revenue of $423m.

“Our first quarter results improved significantly versus the fourth quarter of 2020 as the pace of vaccinations across the country accelerated and consumers started to resume more normal behavior,” Caesars chief executive Tom Reeg said.

“We are excited to see the dramatic improvement in operating efficiencies throughout our enterprise which we believe are sustainable going forward.”

Publication of the results comes after Caesars last month finalized its acquisition of British gambling operator William Hill.

Under the acquisition deal announced in September last year, Caesars agreed to pay £2.9bn to take ownership of the business, purchasing William Hill’s 1.08bn shares for £2.72 apiece.

Caesars stated that the target of the acquisition was William Hill’s US betting business and technology, with the remainder of the operator’s assets, including its UK arm, set to be sold.