Caesars Entertainment Posts Revenue Increase, Net Loss in 2019

Caesars Entertainment has posted the annual finance figures for 2019. The company has reported a small rise in revenue, but it also had a significant net loss for the 12-month period.

The total net loss is $1.20 billion, whereas the revenue for the period until December 31st was $8.74 billion. This is up 4.2% from previous year’s $8.39 billion.

A Turbulent Year

The company has released a statement in which it said…

…that this rise was mainly driven by the acquisition of Centaur Holdings in the summer of 2018. Caesars also had a very strong period in Las Vegas, which was followed by a good hold throughout the year.

It was noted, however, that these factors, were offset by lower gaming volume and big competition in Atlantic City. Also, prolonged poor weather badly impacted some of its other locations.

Las Vegas’ Caesars revenue totaled at $3.92 billion. This is up 4.4% from the previous year. Net revenue from other states across the US rose to $4.23 billion. The company grew in other business aspects as well, where income jumped to $598 million.

More In-Depth Numbers

The brand’s operating costs rose 6.1% on annual level to $8.12 billion. Caesars reported higher costs in few areas across the business. The company spent 5.5% more, $2.51 billion, on casino costs.

istrative costs rose 4.44% to $1.88 billion. Food and beverage spend also rose 1.8%, though there is a decline in depreciation and amortization costs to $1.02 billion (11.3%).

Caesars also noted addition expenses of 1.38 billion due to change in the fair value of derivative liability related to Convertible Notes.

The company also published the details regarding its financial performance in the fourth quarter. During this period, the revenue was up 2.6% year-on-year to $2.17 billion. This was boosted by Las Vegas activities.

President’s Comments

President and Chief Executive, Tony Rodio, had this to say:

“Caesars’ results were largely driven by the strong demand at our Las Vegas properties, excellent cost controls, and the addition of sports betting in several states which drove increased visitation.

In addition, our focus on costs and operating efficiencies across the company contributed to the excellent performance.”

Caesars has confirmed earlier this month that it is much closer to completing the merger with Eldorado Resorts. Mississippi Gaming Commission has approved the deal, which came after Pannsylvania and Iowa regulatory bodies did the same.

Source:

“Caesars Entertainment slips to $1.20bn net loss in 2019”, igbnorthamerica.com, February 26, 2019.