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Gaming Edge’s TL;DR
- Caesars reported higher revenue in Q2 but lower adjusted EBITDA.
- The company said it was its final public earnings release.
Caesars Entertainment reported higher second-quarter revenue but lower adjusted EBITDA in what it said was its final earnings release as a public company before its pending sale to Fertitta Entertainment.
For the three months ended June 30, Caesars posted $2.993 billion in net revenue, up 3% from a year earlier and above analyst estimates of $2.97 billion. But consolidated adjusted EBITDA fell 3.7% to $920 million, below consensus expectations of $962.7 million.
Las Vegas weakens while regional casinos grow
The quarter showed a clear split in performance across the business. Las Vegas was the main drag, while regional casinos continued to grow. Caesars also did not hold an earnings call or issue forward guidance because of the pending acquisition, limiting what investors can learn from what may be the company’s last regular public earnings update.
Caesars said its Las Vegas segment generated $1.02 billion in revenue, down 3.5% year over year. Segment adjusted EBITDA fell more sharply, dropping 12.6% to $410 million.
By contrast, the company’s regional casinos segment reported $1.57 billion in revenue, up 9.4%, with adjusted EBITDA rising 11.2% to $488 million.
Caesars Digital posted more modest growth. Revenue increased 2.3% to $351 million, while adjusted EBITDA declined 15.0% to $68 million. The Managed and Branded segment also moved lower, with revenue down 23.0% to $57 million.
Overall, Caesars reported a net loss of $62 million, an improvement from the $82 million loss it posted in the prior-year quarter. Basic earnings per share were -$0.30, compared with -$0.39 a year earlier.
Fertitta deal will take Caesars private
The earnings report arrives as Caesars moves toward a take-private deal announced in May, when Fertitta Entertainment agreed to acquire the company for $31 per share in cash.
Caesars said the transaction carries an equity value of about $5.7 billion and a total value, including assumed debt, of about $17.6 billion. The company previously described the offer as a 49% premium to its unaffected share price from late February.
At the end of June, Caesars reported $11.81 billion in total debt, $965 million in cash and equivalents, and $10.842 billion in net debt. It also said it had about $2.9 billion of available revolving credit capacity.
The company did not say when the acquisition will close in this earnings release, but it made clear that this SEC filing was its final financial transmission as a publicly traded company after years of restructurings, pandemic disruption, and ownership changes.
Based on reporting by The Eastern Herald.
