Caesars Entertainment reduced its net loss from 80.0% to just 0.5% during the first quarter 2022, following a growth of 23.5% in revenues due to its digital business and Las Vegas.
Caesars’ digital business, which reported positive revenue for the quarter ending March 31, was one of the highlights. The operator’s digital business posted a negative revenue last year.
Caesars reported growth in its Las Vegas segment. The division was able close the gap with its regional operations division which remained its primary revenue source for Q1.
Tom Reeg, Caesars’ chief executive officer, said: “We delivered a strong quarter highlighted by a record Q1 adjusted EBITDA in Las Vegas.” “Results for our regional segment were consistent with previous quarters, especially after excluding the effect of the bad weather that occurred in northern Nevada in the quarter.
“Our digital segment almost broke even in the first quarter, despite opening operations in Ohio and Massachusetts.”
Q1 Results
The total revenue for the first three months of the year was $2.83bn – up 23.5% compared to $2.29bn the previous year.
Casino revenue for the third quarter increased by 22.7%, to $1.56bn. Food and beverage revenue rose 26.0%, to $427m. Hotel revenue increased 31.3%, to $503m. Other revenue grew 13.3%, to $315m.
Las Vegas revenues were 23.7% higher, at $1.13bn, compared to regional operations, which generated revenue of $1.39bn, an increase of 2.2% on the previous year.
Digital revenue improved to $238m from a loss $53m, managed and branded revenues grew by 4.5% to reach $69m, and corporate and other revenues reached $3m.
Finance expenses rose 43.8%, to $788m, but operating costs decreased by 3.3%. This resulted in a loss before tax of $185m.
Caesars has received $49m of tax benefits. This means that the overall net loss in Q1 2022 was $136m compared to $680m. The adjusted EBITDA increased by 223.7% on a year-over-year basis to $958m.
