CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features a host of second quarter results from the likes of MGM Resorts, Bally’s and Caesars, as well as a $500m deal to buy the WSOP.
$2.83bn
Publishing its Q2 results, Caesars Entertainment reported net revenues for the period of $2.83bn when adjusting to include the impact of its completed divestitures. This figure is flat when compared to the same period last year (Q2 2023: $2.83bn).
The operator’s net revenue remained relatively consistent thanks to a strong performance from Caesars Digital and a small improvement, but record figure, in Las Vegas operations, offsetting decreases in Regional and Managed and Branded revenue.
Per segment, Caesars Digital revenues improved by 27.8% YoY to $276m (2023: $216m), while Las Vegas revenue grew by 1.9% to $1.1bn (2023: $1.08bn). Managed and Branded revenue fell by 2.8% to $70m (2023: $72m), while Regional revenue dropped by 5.2% to $1.39bn (2023: $1.46bn).
Caesars Entertainment President and COO, Anthony Carano, stated that Vegas growth was “driven by continued growth in hotel cash revenue as a result of higher year-over-year occupancy and ADRs and record performance from our food and beverage”.
As for Digital, Eric Hession, President of Caesars Sports and Online Gaming, noted that sports betting net revenue increased by 19% YoY while igaming revenue rose by 50% for the second consecutive quarter.
Across revenue type, casino revenue stood at $1.56bn (2023: $1.58bn), food and beverage came in at $435m (2023: $435m), hotel revenue stood at $514m (2023: $525m) and other revenue was $324m (2023: $335m).
Caesars declared a net loss of $122m for Q2, down when compared to the net income of $920m for the comparable prior-year period, primarily due to “a release of $940m of valuation allowance against deferred tax assets” associated with its REIT leases in the prior year.
Across segments, net losses were reported in the operator’s Regional and Corporate and Other segments of $51m (2023: $124m net income) and $364m (2023: $538m net income) respectively.
2.5%
Bally’s reported $621.7m in consolidated revenue for the second quarter of 2024, a 2.5% increase when compared to the same period the previous year (Q2 2023: $606.2m).
Growth in the company’s gaming operations was offset by declines in non-gaming revenue. Gaming revenue at the end of the quarter stood at $524.8m (2023: $493.3m), while non-gaming revenue came in at $96.9m (2023: $112.9m).
Across segments, Casino & Resorts revenue rose by 3% year-over-year to $343.1m (2023: $333.2m), North America Interactive revenue improved by 94.7% to $49.2m (2023: $25.3m), while International Interactive revenue fell by 7.4% to $229.4m (2023: $247.8m).
CEO Robeson Reeves noted that Casino & Resorts revenue benefited from the “ongoing ramp of operations” at Chicago Temporary Casino and stability across most of its portfolio, offset by Tropicana’s closure and “property-specific headwinds in certain markets”, resulting in the segment’s Q2 adjusted EBITDAR falling by 10% YoY.
UK revenue grew by 9% in comparison to the same period the previous year, a record performance, but other markets offset this growth. Adjusted EBITDAR for the segment dropped by 3.9% YoY to $81.3m.
Reeves commented: “The strength of our UK market reflects continuing igaming share gains and the initial results from accelerating the soft launch of our online sports betting offering.
“Outside the UK, our business in Asia was challenged in the quarter as we continue to work through several logistical and operational hurdles which directly impacted players. We believe the Asian Interactive market remains an attractive opportunity and we will continue to work to manage and grow our position in this important region.”
$500m
Caesars Entertainment has sold the WSOP to GGPoker’s parent brand, NSUS Inc, just weeks after the operator hosted the largest-ever edition of the event.
NSUS has acquired the market-leading poker event in a deal worth a total of $500m, with $250 million being paid in cash up front and another $250 million due in five years time.
Caesars Digital President Eric Hession noted how GGPoker has been a “longstanding and successful” partner of WSOP following the sale, with the online poker brand sending a number of online satellite qualifiers to both the Las Vegas and the WSOP Paradise events.
“We’ve enjoyed a longstanding and successful partnership with GGPoker that has helped spur the growth of the WSOP brand,” said Hession.
“This transaction is an exciting step for Caesars as a company and the WSOP brand as it continues to evolve. We can’t wait to see what NSUS has in store for growing the WSOP’s legacy in poker, and we look forward to continuing to deliver an unmatched and familiar experience to poker players going forward.”
Despite the sale, live WSOP events are set to remain at Caesars’ Las Vegas properties, allowing the operator to continue profiting from the events. Regional Caesars properties will continue to offer WSOP Circuit events as well.
$4.3bn
Praising its Q2 performance as “positive”, MGM Resorts International declared record consolidated net revenues of $4.3bn, up 10% in comparison to the same period last year (Q2 2023: $3.9bn).
The global gaming and entertainment company credits the improvement to “an increase in revenue at MGM China resulting from the continued ramp-up of operations after the removal of COVID-19 related entry restrictions in Macau” in Q1 2023.
Net income attributable to MGM Resorts fell to $187m (2023: $201m), while consolidated adjusted EBITDAR stood at $1.2bn.
Per segment, casino revenue rose to $2.2bn (2023: $2bn), rooms revenue increased to $899m (2023: $815m), food and beverage revenue up to $802m (2023: $743m), while entertainment, retail and other revenue fell to $402m (2023: $421m). Reimbursed costs stood at $11.9m (2023: $11.6m).
Taking a look at operations per location, Las Vegas Strip Resorts revenue rose by 3% year-over-year to $2.2bn (2023: $2.1bn), Regional Operations revenue improved slightly to $927m (2023: $926m), while MGM China revenue grew by 37% YoY to $1bn (2023: $741m). Management and other operations revenue stood at $176.6m (2023: $128.5m).
For Regional Operations, adjusted property EBITDAR fell by 2% when compared to the same period the previous year to $288m (2023: $294m).
Revenues from MGM China operations benefited positively from the “continued ramp up of operations after the removal of COVID-19 related travel and entry restrictions” in Q1 2023. Adjusted property EBITDAR for the operations grew by 40% YoY to $294m (2023: $209m).
“We’re excited by the progress we’re making as a company against our strategic priorities and anticipate carrying our current momentum forward into the back half of the year,” said CEO & President Bill Hornbuckle.
12%
The UK Gambling Commission reported a 12% increase in online total gross gambling yield in the first quarter of the 2024 financial year compared to the same period last year, with new records set in several aspects of the slots dataset.
In addition, slots GGY has risen by 10% year-over-year, real event betting GGY has also grown by 16% when compared to Q1 2023, while new highs were recorded in slots across GGY, spins and average monthly active accounts.
Publishing data for Q1 – April to June – the UKGC declared that online total GGY, covering approximately 80% of the online gambling market, came in at £1.46bn, a 12% increase YoY.
The number of bets and/or spins rose by 11% compared to the same period last year, reaching a new peak for the second consecutive quarter of 24.5 billion. Meanwhile, the average monthly active accounts across all verticals grew by 9%.
Slots GGY came in at £642m, a 10% increase YoY, with the number of spins rising by 12% as well to 22.4 billion and average monthly active accounts growing by 11% to 4.4 million per month.
The number of online slots sessions lasting longer than an hour rose by 8% to 9.6 million, while the average session length stayed at 17 minutes. Approximately 6% of all sessions lasted more than an hour, which is the lowest percentage recorded in the dataset.
