Caesars Entertainment Reports Q2 2024 Financial Results: Loss of $122 Million
Date: 2024-08-01 Author: Leon Pierce Categories: PAYMENT SOLUTIONS
Caesars Entertainment reported its Q2 2024 financial results, reporting a net loss of $122 million. This is a significant decline of 86% year-over-year. The loss was primarily driven by a $940 million write-down related to valuation allowances on deferred tax assets related to leases within the Real Estate Investment Trust (REIT).
The company also reported a slight decline in total revenue of 0.1% to $2.83 billion. However, adjusted EBITDA for Q2 2024 increased 0.6% to $1 billion. The Las Vegas segment saw the most growth, with existing store revenue, hotel occupancy, and average daily rate (ADR) increasing. Las Vegas operations generated $1.1 billion in revenue for the quarter.
Caesars Digital saw strong growth, increasing revenue 27.8% to $276 million for the second quarter of 2024. However, the regional segment faced increased competition in new markets, partially offset by operations in Danville, Va., and Columbus, Nebraska. Regional operations generated nearly $1.4 billion in revenue.
Outlook and Strategic Moves
Caesars Entertainment CEO Tom Reeg said, “We remain optimistic about the remainder of 2024, driven by strong operating trends in our Las Vegas and Caesars Digital businesses, as well as the anticipated opening of a permanent facility in Danville and our $430 million investment in the newly rebranded Caesars New Orleans property.”
In June 2024, Caesars completed the acquisition of WynnBet’s Michigan operations, which includes a long-term extension of iGaming market rights with the South Ste. Marie Chippewa Tribe. The company plans to migrate WynnBet’s iCasino operations to the newly branded Caesars platform in Michigan in the second half of 2024, pending regulatory approvals.
Earlier in 2024, Caesars launched legal mobile sports betting in North Carolina, which operates on the Eastern Banks of Cherokee Tribe, and entered the Kentucky sports betting market in September 2023. These expansions are part of the company’s strategy to grow its digital and regional presence.
As of June 30, 2024, Caesars reported total senior debt of $12.4 billion, with total cash and cash equivalents of $830 million, excluding $129 million in restricted funds. The company’s liquidity includes a $2.2 billion revolver facility, partially offset by credit letter and regulatory obligations.
Thus, despite the financial challenges, Caesars Entertainment continues to actively develop its business lines and expand its presence in the gaming market.
