Caesars Expects Digital Revenue and Earnings Growth in Q4

Caesars Entertainment is poised for substantial growth in its digital sector for Q4 2023, with preliminary figures indicating a potential uptick in overall revenue. The group expects its revenue for the quarter to fall between $2.82 billion and $2.84 billion, surpassing the adjusted revenue of $2.77 billion recorded in Q4 2022. This upward trend is partly due to the exclusion of the Rio All-Suite Hotel & Casino operations in Las Vegas, divested in October 2023.

In contrast, Las Vegas operations are projected to generate between $1.08 billion and $1.09 billion in revenue, slightly behind the previous year's adjusted figure of $1.10 billion. Notably, Rio revenue in Las Vegas during Q4 2022 was $54 million, contributing to an unadjusted 2022 total of $1.15 billion.

Revenue from regional operations is expected to range between $1.34 billion and $1.37 billion, outperforming the $1.36 billion total in 2022.

The digital business segment shows the most promising growth, with projected revenue of $303 million to $305 million, marking a 27.0% increase from 2022.

In a significant development, Caesars expects its digital division to maintain a positive EBITDA for consecutive quarters, following successful outcomes in Q2 and Q3 of 2023. This contrasts with Q4 2022, when the digital business reported a $5 million adjusted EBITDA loss.

While overall adjusted EBITDA may decrease from $949 million to a range of $920 million to $940 million, the digital division continues to shine.

Caesars foresees a potential group net loss ranging from $157 million to $4 million, indicating a possibility of turning a profit at the higher end of this range.

These figures are preliminary, with Caesars set to unveil its complete Q4 and 2023 full-year results on February 20th, 2024.