Caesars swings to profit in Q4 supported by strong Las Vegas occupancy

Caesars Entertainment returned to profit for the fourth quarter of 2024, reversing a year-ago loss, as strong demand in its Las Vegas properties helped offset regional challenges. The company posted a net income of $11 million, or 5 cents per share, compared to a $72 million loss in the same quarter of 2023.

Revenue for the quarter was $2.8 billion, slightly down from $2.83 billion in the prior-year period. CEO Tom Reeg attributed the company’s performance to steady business in Las Vegas, highlighting high occupancy rates and average daily room rates.

"Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs," Reeg said in a statement. He also noted that Caesars Digital faced challenges from unfavorable sports betting results in October and December but saw over 60% growth in iGaming net revenues.

For the full year, Caesars posted revenues of $11.2 billion, compared to $11.5 billion in 2023. The company also reported a net loss of $278 million, down from a net income of $786 million the previous year, largely due to a $940 million tax-related gain recorded in 2023. Caesars Digital, however, showed improvement, with an adjusted EBITDA of $117 million, up from $38 million in 2023.

Las Vegas remained a key driver of revenue, generating $1.08 billion in the fourth quarter, slightly down from $1.09 billion the prior year. Occupancy rates for the quarter stood at 96%. Caesars' regional casinos generated $1.34 billion in revenue, while its digital segment contributed $302 million.

The company cited competitive pressures in certain regional markets, although openings in New Orleans and Danville late in the quarter provided some relief.

Reeg stated: "As we look ahead to 2025, the brick and mortar operating environment remains stable and we are expecting another year of strong net revenue and Adjusted EBITDA growth in our Digital segment."

Reeg also pointed to expectations of lower capital expenditures and reduced cash interest expenses in 2025, which he believes will generate free cash flow that can be used to reduce company debt.

On the capital investment front, Caesars executives said their recent reinvestments at key Las Vegas properties were showing positive results. Improvements at Caesars Palace, including high-limit gaming areas, were well received by guests, while renovations at other properties, such as the Versailles Tower at Paris and the GO Pool at the Flamingo, are expected to deliver strong returns.

The company also anticipates growth in group business over the next two years, with the upcoming CONEXPO-CON/AGG construction trade show in March and the return of the State Farm convention in 2026 expected to drive additional revenue.

While Las Vegas remained a strong performer, Caesars, like other major casino operators, faced a difficult year-over-year comparison due to the impact of the inaugural Formula One Las Vegas Grand Prix in 2023. While the event’s 2024 edition contributed to earnings, it did not match the excitement and revenue generated in its first year.

CFO Bret Yunker remarked on the company’s focus on financial discipline, noting that Caesars used proceeds from recent asset sales to reduce debt by $500 million and repurchase $50 million worth of shares. As of December 31, the company had $12.3 billion in outstanding debt and $866 million in cash.