USA.- February 22, 2024 www.zonadeazar.com [1]Caesars Entertainment reported a decline in revenue and adjusted earnings in Las Vegas during the fourth quarter, but a robust performance in its digital segment helped bolster overall earnings in the final three months of 2023.
According to Caesars’ fourth-quarter earnings report released on Tuesday, its Las Vegas properties generated $1.09 billion in revenue in the fourth quarter, down from $1.15 billion in the same period of 2022.
Adjusted earnings for Las Vegas came in at $489 million, showing a decrease from $537 million in Q4 2022. Regional properties reported revenue of $1.36 billion in the fourth quarter, compared to $1.35 billion the previous year.
Regional adjusted earnings fell to $431 million, down from $443 million.
In contrast, the digital segment exhibited a strong showing, with $304 million in revenue, up from $237 million year over year. Adjusted earnings came in at $29 million, a significant improvement from a loss of $5 million during the fourth quarter of 2022.
Companywide for the fourth quarter, revenue remained steady at $2.82 billion, the same as in 2022. Adjusted earnings were $930 million, a slight decrease from $957 million.
For the entire year, net revenues totaled $11.5 billion, up from $11.3 billion in 2022. Adjusted earnings were $3.93 billion, a slight increase from $3.92 billion.
CEO Tom Reeg expressed satisfaction with the performance in 2023, describing it as an “unbelievable year.” He noted that fourth-quarter operating results demonstrated consolidated net revenue growth, reduced net loss, and stable consolidated adjusted EBITDA year over year. The results were driven by a 28% year-over-year increase in Caesars Digital net revenue, generating a 10% adjusted EBITDA margin in the quarter.
Reeg acknowledged that Las Vegas operations were impacted by a new union contract signed in the fourth quarter, necessitating a catch-up payment. Additionally, the transition of the Versailles Tower from Horseshoe Las Vegas to Paris Las Vegas resulted in 65,000 room nights being taken out of commission during the fourth quarter, with an average daily room rate exceeding $200.
Despite fewer available rooms, Las Vegas room revenue increased, and food and beverage revenue rose in the double digits.
Slot handle showed an increase, while the table drop remained flat. Construction disruptions, weather, and competition affected regional properties.
Looking ahead to 2024, Reeg acknowledged weather impacts on markets but expressed expectations for growth in Las Vegas, regional markets, and a particularly dramatic growth in the digital segment. The fourth-quarter handle and revenue for digital were up by over 50%, with Caesars Palace online experiencing about the same revenue level as its predecessor but creating a shift towards more slot play, especially among women.
Reeg concluded, “Our icasino is ramping up quickly and continues to accelerate. It has bigger margins than online sports betting, and that bodes well for this year.”
Edited by: @MaiaDigital [2] www.zonadeazar.com [1]