Caesars Entertainment Reports Mixed Fourth-Quarter 2024 Results

Caesars Entertainment released its fourth-quarter and full-year 2024 financial results, revealing a slight decline in revenue and adjusted earnings, while net income showed an improvement. The company published the results ahead of its scheduled earnings call late Tuesday.

Quarterly and Annual Financial Performance

For the fourth quarter of 2024, Caesars reported net revenues of $2.8 billion, a slight drop from the $2.83 billion recorded in the same quarter of the previous year. Same-store adjusted EBITDA came in at $882 million, down from $924 million in Q4 2023. Caesars Digital, which includes online gaming and sports betting, saw its adjusted EBITDA decrease to $20 million from $29 million year-over-year.

Despite these declines, the company’s net income reached $11 million, marking a significant turnaround from the $72 million net loss in the comparable quarter of 2023.

For the full year, Caesars reported total net revenues of $11.2 billion, compared to $11.5 billion in the prior year. The company posted a net loss of $278 million, a sharp contrast to the $786 million net income recorded in 2023. This decline was attributed to the prior year’s $940 million valuation allowance release on deferred tax assets related to REIT leases. Same-store adjusted EBITDA also saw a dip, reaching $3.7 billion, down from $3.9 billion in 2023.

However, Caesars Digital’s adjusted EBITDA for the full year showed a strong increase, reaching $117 million compared to $38 million the previous year.

Las Vegas Stability and Regional Challenges

CEO Tom Reeg commented on the company’s performance, stating, “Fourth-quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter.”

Reeg also addressed the impact of sports betting on the company’s digital division, noting, “Caesars Digital was negatively impacted by sports betting customer-friendly outcomes in both October and December, offset by over 60% growth in iGaming net revenues.”

Looking ahead to 2025, Reeg expressed optimism about the company’s digital operations, stating that Caesars expects “another year of strong net revenue and adjusted EBITDA growth in our digital segment. When combined with lower capex and cash interest expense, 2025 is expected to deliver significant free cash flow, which we expect will be used to further reduce leverage.”

Debt Reduction and Capital Expenditures

As of December 31, 2024, Caesars reported $12.3 billion in outstanding aggregate principal debt. The company had $866 million in total cash and cash equivalents, excluding $150 million in restricted cash.

Chief Financial Officer Bret Yunker highlighted recent debt management efforts, stating, “During the fourth quarter, we used the WSOP and Promenade sale proceeds to permanently reduce debt by $500 million, in addition to repurchasing $50 million of our common stock.”

Yunker further noted that Caesars’ 2024 refinancing activities have positioned the company for substantial reductions in cash interest expenses in 2025 while also extending the nearest debt maturity to 2027. The company anticipates capital expenditures of $600 million for the full year 2025, excluding any remaining spending on Caesars Virginia.

Source:

‘’Caesars Entertainment, Inc. Reports Fourth Quarter and Full Year 2024 Results’’, investor.caesars.com, February 25, 2025.