Caesars Entertainment reported a reduced net loss for its 2022 financial year after growth within its digital business contributed to an increase in revenue.
The operator posted year-on-year growth across all its operating segments, though it was the digital segment that experienced the largest percentual increase during the 12 months to December 31, 2022.
The full-year results were also helped by what chief executive Tom Reeg said was a “strong” performance in the fourth quarter, during which the operator benefited significantly from its sportsbook offering.
Reeg added that the operator will now seek to build on this in the current year, with the Q4 sportsbook performance in particular having set a foundation for a strong 2023.
“Our fourth quarter delivered another set of strong operating results as both our Las Vegas and regional segments each set a new fourth quarter record for adjusted EBITDA,” Reeg said. “Additionally, our Las Vegas segment set a new full year record for adjusted EBITDA.
“Caesars Sportsbook delivered significantly improved operating results during the fourth quarter which sets the foundation for a strong 2023. Consumer demand remains strong in all of our verticals, and we are optimistic for the year ahead.”
Looking at the fourth quarter results in full, revenue for the three-month period was 8.9% higher year-on-year at $2.82bn.
This included $1.55bn in casino revenue, $511.0m worth of hotel revenue, $424.0m in food and beverage revenue, and $335.0m in other revenue.
Breaking this down by operating segment, regional revenue was $1.40bn, up 0.4% on 2021, while Las Vegas revenue also increased by 11.0% higher to $1.15bn. Digital revenue more than doubled from $116.0m to $237.0m, while managed and branded revenue was level at $72.0m and other revenue hit $2.0m.
Turning to costs, total operating expenses were reduced by 5.5% to $2.33bn, while after including $644.0m in financial expenses, this left a pre-tax loss of $156.0m, though this was a significant improvement on the $557.0m loss posted at the same point in 2021.
Caesars paid $6.0m in income tax and also accounted for a $14.0m positive impact from non-controlling assets, meaning it ended the quarter with a $148.0m net loss, compared to the $434.0m loss in 2021. In addition, adjusted EBITDA jumped 64.7% to $957.0m.
Looking at the full year, revenue was up 13.1% at $10.82bn. This included $6.00bn worth of casino revenue, $2.00bn from hotel operations, $1.60bn from food and beverage and $1.27bn in other revenue.
Regional casinos contributed $5.70bn to the total, an increase of 3.0% on the previous year, while Las Vegas revenue was also 25.8% higher at $4.29bn. Digital revenue rocketed 62.6% to $548.0m, while managed and branded revenue was 1.4% higher at $282.0m.
Operating costs increased 12.0% to $9.08bn but net financial expenses were 15.6% lower at $2.30bn, leaving a pre-tax loss of $565.0m, compared to $986.0m in 2021.
Caesars received $41.0m in tax benefits and noted $11.0m in income from non-controlling assets, but also reported a $386.0m loss from discontinued operations. As a result, net loss for the year was $899.0m, though this was still an improvement on $1.02bn in 2021, while adjusted EBITDA also increased 8.5% to $3.24bn.