Caesars Entertainment had a net loss for the quarter

Aug 6, 2019 10:01 AM

Caesars Entertainment, which operates nine hotel-casinos on the Las Vegas Strip, had a net loss for the quarter — $315 million, or 47 cents per share, for the three months ended June 30, reversing year-earlier income of $29 million, or 4 cents per share.

Caesars’ shares fell 15 cents, or 1.28 percent, Monday to close at $11.59 in regular trading on the Nasdaq and then fell 28 cents, or 2.2 percent to reach $11.31 in after-hours trading. The shares are up 72.7 percent in 2019.

According to CDC Gaming Reports, adjusted earnings before interest tax depreciation amortization and rentals, a cash flow measure that filters out nonrecurring items, rose 4.1 percent to $633 million, topping the $619 million consensus of analysts polled by Zacks Investment Research.

Revenue rose 5.2 percent to $2.22 billion from $2.12 billion and topped the $2.21 billion estimate of Zacks-polled analysts. A $10 million boost from Las Vegas properties, helped by higher hotel and food and beverage revenues and an $82 million increase in net revenue related to the 2018 acquisition of Centaur, boosted Caesars Entertainment’s overall revenue in the quarter.

Caesars Entertainment bought Centaur Holdings for $1.7 billion in cash in July 2018, adding the Hoosier Park Racing and Casino in Anderson, Indiana, and Indiana Grand Racing and Casino in Shelbyville, Indiana, to Caesars’ property portfolio.

At its Las Vegas properties, Caesars Entertainment’s revenue per available room rose 6.2 percent in the quarter from a year earlier, as hotel occupancy rose to 97.5 percent from 93.9 percent a year earlier.

Several Midwest legislative moves during the quarter will poise Caesars to boost future revenue. In May, Indiana OK’d gaming legislation to let it offer table games at its Centaur properties, and sports betting at its casinos and off-track betting parlors, beginning Jan. 1.

In June, Louisiana’s governor signed a measure to allow a 30-year extension, to 2054, of the Harrah’s New Orleans operating contract if Caesars invests $325 million to upgrade the facility by 2024, adding a new hotel and restaurants.

Stratten G2E keynote speaker

The , Global Gaming Expo (G2E) 2019 has announced that Scott Stratten, a top marketing influencer and president of UnMarketing, be the keynote speaker at this year’;s event, scheduled for Oct. 14-17 at the Las Vegas Sands Expo & Convention Center.

In his keynote address, Stratten will present strategies and insights from a business leadership perspective and drawing from his experience as a longtime patron of the gaming industry.

Stratten is co-host of UnPodcast and author of five best-selling books, including UnMarketing: Everything Has Changed and Nothing is Different. He ran one of the most successful viral video agencies in the world and now assists companies like Walmart, Pepsi and IBM in navigating the landscape of business disruption.

“We are excited to hear from Scott as he brings his ideas to the G2E Special Events Stage on how the gaming industry can think differently about interacting with the customers who matter most, about everything from world-class guest experiences to entertainment on and off casino floors,” said Korbi Carrison, G2E event director.

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