Caesars Entertainment Faces Mixed First Quarter with Online Segment Shining
Caesars Entertainment reported a challenging first quarter in 2024 with a slight decline in overall revenue and a notable increase in net losses.
The company’s revenue fell marginally to $2.7 billion from $2.8 billion in the same period last year. More striking was the growth of the net loss, which widened to $158 million from $136 million year-over-year. Adjusted EBITDA also saw a decrease, dropping 9% to $853 million from $947 million.
Challenges Across the Board
The first quarter was particularly tough for Caesars, with CEO Tom Reeg describing it as a period where “everything that could go wrong did.”
Notably, the Las Vegas operations saw a 4.5% revenue drop, attributed mainly to lower-than-expected hold rates despite high occupancy driven by major events like the Super Bowl and Chinese New Year.
Inclement winter weather and a costly sports betting launch in North Carolina were also highlighted as significant one-time negatives impacting the quarter.
Bright Spots in Digital Operations
Despite the broader challenges, Caesars Digital emerged as a key positive. The online casino and sports betting segments of Caesars Digital witnessed an impressive increase in net revenues, rising 18.5% year-over-year to $282 million.
This sector has recovered from a previous loss and posted $5 million in adjusted EBITDA, compared to a $4 million loss last year.
Growth was particularly strong in online sports betting and iCasino net gaming revenues, which surged 23% and 54%, respectively.
Innovations Driving Growth
The significant uplift in iCasino operations can be largely attributed to the launch of the revamped Caesars Palace Online Casino app, which now accounts for more than half of the net gaming revenues in this segment.
The app’s redesign has been well-received, contributing to record-setting quarterly performances in active customer numbers, volume, gross gaming revenue, and net gaming revenue.
The launch of sports betting operations in North Carolina marked another strategic expansion for Caesars, with the company reporting promising early results. This successful rollout is part of Caesars’ broader strategy to increase its presence across North America, where it now offers sports betting in 31 jurisdictions and mobile wagering in 26.
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