Caesars Group Reports Q3 Revenue Surge
Date: 2023-11-05 Author: Dima Zakharov Categories: CASINO, EVENTS
Record Quarter for Regionals at Caesars
In the third quarter of this year, Caesars Group achieved a record-breaking performance, with total revenue amounting to $2.99 billion, marking a 3.7% rise compared to the previous year. This growth was widespread, touching all core segments, and the launch of Caesars Palace Online during Q3 played a significant role in the digital sector's boost.
Digital Spending Surges
Despite the online casino launch occurring halfway through Q3, in mid-August, total spending on digital surged by 38% compared to the previous year. CEO Tom Reeg expects that the full impact of Caesars Palace Online will be more prominent in Q4. Reeg expressed his confidence in the positive performance of Caesars Digital, anticipating further growth in the upcoming quarters.
Future Plans for Expansion
Tom Reeg also outlined plans for future improvements and long-term goals, including achieving $500.0 million in EBITDA by 2025. One of these strategies involves adding another skin to the portfolio, potentially happening late next year. This expansion aims to improve the integration of various game vendors and enhance insight into player preferences.
Regional Dominance
In the third quarter, casino activities were the primary revenue driver, totaling $1.62 billion, a 0.9% increase from the previous year. The food and beverage segment saw revenue climb by 7.8%, reaching $443 million. Hotel revenue increased by 1.7% to $553 million, and other revenue soared by 15.6% to $378 million.
Strong Performance in Las Vegas
Las Vegas saw a 4.0% revenue increase, reaching $1.12 billion, with adjusted EBITDA rising by 0.4% to $482 million.
Digital Sector Growth
In the digital sector, revenue edged up by 1.4% to $215 million, and adjusted EBITDA amounted to $2.0 million. This marked the second quarter in which the division achieved positive EBITDA, indicating steady growth.
Managed and Branded Business Expansion
The Managed and Branded business contributed an additional $98 million in revenue, marking a significant 40% increase. However, the Corporate and Other segment reported a $4 million loss.
Profitable Quarter
Operating costs in Q3 totaled $2.23 billion, rising by 1.9%. Casino expenses remained the largest area of spending, reaching $831 million, with an additional $585 million in non-operating costs.
Impressive Net Profit
Despite the increase in expenses, the pre-tax profit reached $139 million, surging by 127.9% from the previous year. After accounting for tax and non-controlling assets, the net profit for Q3 was $74 million, a 36.5% increase from the previous year.
Strong Year-to-Date Figures
Caesars Group's year-to-date performance was also impressive, with revenue for the nine months to September increasing by 8.9% to reach $8.70 billion. The revenue comprised $4.79 billion from the casino, $1.31 billion from food and beverage, $1.58 billion from hotels, and $1.03 billion from other sources.
Segment-Wise Growth
Regional revenue for Caesars was 1.7% higher at $4.42 billion, while Las Vegas revenue climbed by 7.9% to $3.38 billion. The digital sector led the way in growth, with $669 million in revenue, marking a 115.1% increase from the previous year.
Promising EBITDA Figures
Adjusted EBITDA for the group reached $3.01 billion, showing a 31.6% increase. This included $9 million from Caesars Digital, which, in the previous year, reported a $661 million loss.
Caesars Group is looking forward to a strong finish in 2023, driven by robust consumer demand and the completion of capital projects. The company remains committed to operating cost efficiencies and long-term EBITDA growth.
