Caesars Entertainment Inc. was able to reduce its net loss to $233m in the third quarter of its 2021 financial year after experiencing an 86.1% year-on-year jump in revenue.
Total revenue for the three months through to September 30 – which include the US operations of William Hill but not the rest of the operator, even though it still owns the entire business – amounted to $2.69bn, up from $1.44bn in the corresponding period last year.
Caesars said the increase was mainly due to novel coronavirus (Covid-19) restrictions being eased as its casinos, whereas in Q3 of last year the operator was faced with measures such as reduced capacity limits and social distancing.
As such, casino and part-mutuel commissions revenue increased 53.9% to $1.51bn during the quarter, while hotel revenue rocketed 155.5% to $511m. Caesars also saw food and beverage revenue climb 173.2% to $347m and other revenue 134.8% to $317m.
Turning to segment performance, Caesars’ regional casinos were the primary source of revenue, generating $1.55bn in revenue in Q3, up 46.5% year-on-year.
However, the growth was mostly due to Las Vegas, as revenue here hiked 234.5% to $1.02bn as Covid-19 rules were eased in Nevada, while Caesars Digital revenue increased 146.2% to $96m and managed and branded revenue by 73.2% to $71m, though corporate and other revenue dipped 75.0% to $1m.
Caesars noted a number of major highlights in the quarter, including its decision to sell the non-US assets of William Hill to 888 in a deal worth $3.0bn. Subject to conditions, the sale is expected to go through during the first half of 2022.
Other achievements during the quarter included the launch of a new Caesars Sportsbook app, following the acquisition of William Hill earlier this year, while the operator also purchased a minority interest in the Maryland-based Horseshoe Baltimore from one of its partners in the joint venture.
After the end of the quarter, Caesars launched mobile and retail betting in Louisiana after the US state opened its legal sports wagering market, while Caesars also completed the protracted sale of the Harrah’s Louisiana Downs racetrack and casino.
Looking at spending in Q3 and operating expenses were up 36.8% to $2.15bn, while other costs – including $579m in interest expense and $117m related to the extinguishment of debt – totalled $849m.
This left a pre-tax loss of $317m, an improvement on $780m at the same point last year. Caesars also noted adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 135.2% higher at $882m, with quarterly record figures from both is regional and Las Vegas segments.
Caesars paid $90m in tax in the quarter, and after adjusted for a $4m loss from discontinued operations and $2m loss attributable to non-controlling interests, total loss for the quarter was $233m, compared to $926m in 2020.
“Our third quarter operating results reflect an all-time quarterly EBITDA record in our Las Vegas segment and a new third quarter EBITDA record for our regional segment,” Caesars’ chief executive Tom Reeg said.
“We are encouraged by the early results from our rebranded Caesars Sportsbook launch and we are looking forward to launching additional states by year end and into 2022.”
In terms of its year-to-date performance, revenue for the nine months through to the end of September was 241.6% higher at $6.98bn.
Operating costs were up 137.4% to $5.64bn and other expenses hiked 162.0% to $2.08bn, but pre-tax loss was cut from $1.13bn to $712m from adjusted EBITDA was 421.3% up to $2.42bn.
After paying $167m in income tax and included losses from discontinued operations and non-controlling interests, net loss for the nine-month period was $585m, compared to $1.20bn in 2020.