In its recently released financial report for the third quarter, spanning from July to September, Caesars Entertainment reports a gross revenue of $2.99 billion. The company recorded a 3.7% growth in revenue during this Q3 period when compared to the corresponding quarter of the previous year.
The group posted a record adjusted EBITDA of $1.04 billion, demonstrating substantial growth across every sector of its portfolio. Notably, the digital division of the group played a pivotal role in driving this success, contributing significantly to the overall financial performance.
The positive trajectory in the company’s financial performance can be credited to the success of its recent endeavors, particularly the launch of two temporary gaming facilities: Caesars Virginia and Harrah’s Columbus Nebraska. Additionally, the reopening of Horseshoe Lake Charles has played a significant role in contributing to this upward trend in the company’s financials.
Another contributing factor to Caesars’ growth was the notable increase in gaming revenues within its digital division. This upturn was primarily driven by the expansion of its online and retail sportsbooks through launches in additional states. Furthermore, the Las Vegas hotel segment exhibited encouraging signs of recovery, as it experienced improvements in its occupancy rates, further bolstering the company’s overall performance.
Tom Reeg, the Chief Executive Officer of Caesars Entertainment, expressed his optimism for the company’s growth and prospects, despite the increased digital expenditure.
“We feel very good about how the business is performing, how it’s coming together.
“Looking forward, we feel very good about what we see in front of us. We’re excited about the momentum we’ve got in online casino now that we’ve launched Caesars Palace Online.”
He also addressed the company’s long-term growth strategy, emphasizing a target of achieving $500.0 million in EBITDA by 2025. Reeg explained that this plan encompasses the addition of “another skin to the portfolio.”
“We feel that there’s a lot of opportunity to improve the integration of the various game vendors that will give us more insight into the actual workings of the game and see what customers are playing and where the spins are. We are also exploring the possibilities of adding another skin to the portfolio. There are a number of states where we have additional licenses that we’ve reserved. We would plan to potentially roll that out later in 2024.
“The [$500.0m] target has not changed. We continue to see a visible path to that end. And each quarter, we grow more confident.”
Caesars Casino Leads the Way
Caesars’ casino operations took the lead, reporting the highest revenue in the third quarter ending Sept. 30, with a 0.9% increase, totaling $1.62 billion. Simultaneously, the hotel segment witnessed a 1.7% revenue growth, reaching $553 million. The food and beverage sector experienced an upswing of 7.8%, contributing $443 million to the company’s revenue. Other revenue sources collectively increased by a significant 15.6%, resulting in a total of $378 million.
The primary source of revenue for the corporation continues to be its regional business, which experienced a growth of 2.3%, reaching a total of $1.57 billion in revenue. Furthermore, properties located outside Las Vegas achieved a record adjusted EBITDA of $575 million in the third quarter.
Over the nine months leading up to the end of the third quarter, Caesars saw an 8.9% increase in FY23 revenue, reaching $8.7 billion. The casino division contributed $4.79 billion to this total, while the food and beverage sector generated $1.31 billion, and the hotel segment brought in $1.58 billion. Additionally, other revenue sources combined to make $1.03 billion.
After paying $47 million in taxes and deducting $18 million in profits from non-controlling assets, Caesars achieved a net profit of $74 million in Q3. This represents a significant spike of 36.5% from the previous year’s figure of $52 million.
Anthony Carano, Caesars’ president and chief operating officer, offered his insights regarding the company’s outlook for the end of the year.
“We are looking forward to a strong finish to 2023. Consumer demand remains strong and our capital projects are winding down. We will continue to remain focused on operating cost efficiencies, harvesting returns on project capital and driving long-term EBITDA growth,” he said.