Caesars sees slight 3.1% revenue decrease to $2.74M in Q1; remains optimistic for the rest of the year

Caesars Entertainment reported operating results for the first quarter of the year. For the period ending March 31, the company's revenue reached $2.74 billion, a 3.1% decrease, with digital growth failing to offset declines across land-based operations.

Net loss for the quarter was $158 million, widened from the $136 million loss in the same period in 2023. Same-store adjusted EBITDA for Q1 was $853 million, down from the $947 million reported in Q1 2023. 

Despite the challenges faced in Q1, which included lower table hold in Las Vegas and adverse weather affecting regional operations, the company highlighted several positive aspects such as record occupancy in Las Vegas, growth in digital gaming, and improved regional segment performance 

Tom Reeg

Tom Reeg, CEO of Caesars Entertainment, commented: "Operating results during the first quarter in Las Vegas are a combination of record occupancy, driven by the Super Bowl and international visitation for Chinese New Year, offset by lower-than-expected hold."

"In our Regional segment, results reflect weather-related weakness in January and early February partially offset by our new property openings. Caesars Digital delivered strong revenue growth despite a lower-than-expected hold in online sports due to unfavorable outcomes for the Super Bowl and March Madness," he added.

In its Digital segment, revenue increased 18.5%, with strong growth across both online sports betting and casino. Online sports betting revenue was up 23.0%, while internet casino revenue was also 54.0% higher.

Breaking down the figures per segment, Las Vegas Q1 revenue declined to $1.02 billion compared to $1.12 billion in Q1 2023. Regional revenue was down to $1.36 billion from $1.38 billion the prior year. Caesars Digital revenue increased to $282 million (Q1 2023: $238 million), Managed and Branded revenue dipped to $68 million (Q1 2023: $69 million), and Corporate and Other revenue reported a $1 million loss (Q1 2023: $3 million). 

Q1 net income per segment included Las Vegas at $198 million (Q1 2023: $293 million), Regional at $41 million (Q1 2023: $75 million), Caesars Digital at a $34 million loss (Q1 2023: $32 million loss), Managed and Branded at $18 million (Q1 2023: $19 million), and Corporate and Other at a $381 million loss (Q1 2023: $491 million loss). 

As of March 31, 2024, Caesars had $12.4 billion in aggregate principal amount of debt outstanding, with total cash and cash equivalents reaching $726 million, excluding restricted cash of $139 million. 

"Moving past the first quarter headwinds, we remain optimistic toward improved operating results throughout the balance of the year," the CEO concluded.