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Rapid growth in all sectors helps Caesars revenue rise 168.7% in 2021

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Caesars has reported revenue of $9.57bn (£7.02bn/€8.43bn) for 2021, a rise of 168.7% from the operator’s total in 2020, with revenue from every division more than doubling.

Regional revenue made up $5.53bn of the total, an increase of 108.1%. Las Vegas revenue totaled $3.40bn, up by $2.65bn, while revenue from Caesars Digital rose $242m year-on-year to $337m, thanks mostly to the acquisition of William Hill and rebranding of its betting product. Managed and branded revenue hit $278m, a rise of 159.8%, and corporate and other costs fell by $6m to $9m.

Caesars also included the pre-consolidation revenue for its Horseshoe Baltimore location and the pre-acquisition revenue in relation to its $2.9bn acquisition of William Hill US in April.

Pre-consolidation Horseshoe revenue hit $151m. Pre-acquisition William Hill US revenue totalled at $135m, though there were also $28m of eliminations associated with these acquisitions. In total the pre-consolidation and pre-acquisition revenues for the year came to $258m.

However, $69m of Caesars revenue came from divested properties, bringing the total revenue if Caesars had been operating as it is now for the entire year to $9.75bn, a rise of 61% from the prior year.

“In 2021, we completed our acquisition of William Hill PLC and applied strong operating cash flows to debt reduction of approximately $1.0 billion,” said Bret Yunker, chief financial officer at Caesars.

“We expect to continue to reduce debt in 2022 through the receipt of asset sale proceeds and generation of significant free cash flow.”

Breaking revenue down by vertical, casino and pari-mutuel commissions generated most of the revenue at $5.82bn, up 134.7% from 2021. Hotel revenue rose $1.10bn to $1.55bn, while food and beverage revenue came to $1.14bn, up $798m. Other revenue added up to $1.05bn, a year-on-year increase of $698m.

Operating expenses totaled at $8.11bn, more than double the $4.01bn of costs in 2020. Casino and pari-mutuel commission costs came to $3.12bn, up 146.1%. General and administrative costs hit $1.78bn, almost double the $908m of costs in 2020, while depreciation and amortization costs came to $1.12bn, a rise of $543m.

Food and beverage costs amounted to $707m for the year, up $442m. Hotel costs rose $268 to $438m. The remaining expenses, which included corporate costs, impairment charges, transaction costs and other expenses made up the remaining $928m.

There expenses brought the total operating income to $1.46bn, up $1.84bn from a loss of $383m in 2020.

Other expenses, which included interest expenses and losses on debt extinguishment resulted in a loss of $2.72bn, which brought the loss before income taxes to $1.26bn. This was $337m less than the previous year.

Income tax provisions at $283m brought the net loss from continuing operations to $986m. After considering $30m in expenses from discontinued operations the total net loss for the period totaled $1.01bn, $742m less than the net loss of $1.58bn in 2020.

Total fourth quarter revenue totaled at $2.59bn, a rise of 61.4%. Much of this was made up of casino and pari-mutuel commissions, which amounted to $1.15bn. This was up 43.3%. Hotel revenue amounted to $429m, up 122.2%, while food and beverage revenue totalled at $343m, a rise of 125.6%.

Other revenue came to $300m, an increase of 66.6%.

Total operating expenses in the fourth quarter totalled $2.46bn. This was up 51%. Casino and pari-mutuel commissions generated $1.01bn of this, almost double what it was in Q4 2020.

Total operating income after expenses came to $122m, up $172m year-on-year. Other expenses generated $679m in costs, bringing the loss before income taxes to $557m, $78m more than in Q4 2020.

After considering income tax provisions at $116m and $8m in revenue from discontinued operations, the total net loss for the fourth quarter was $433m, $124m less year-on-on-year.