Caesars reports improvement in Q1 after vaccination kickoff
Caesars Entertainment has revealed a boost in net revenue during this year’s Q1 up to $1.69 billion, as opposed to last year’s $473 million. However, the net loss for this quarter also went up to $423 million.
The revenue performance also showcased a 7% drop from $1.82 billion, which was recorded by Caesars before it signed the deal to merge with Eldorado Resorts, which ended up being completed in July of last year. The net loss from the business ended up at $431 million, with $79 million worth of benefits for income taxes, and $7 million from discontinued operations along with $1 million to be charged to non-controlled assets which all brought that amount down to $423 million.
Moreover, the revenue from the venues in Las Vegas went down by 39.5% to $497 million, with regional operations increasing to $1.1 billion (26.7%). The firm’s casino commissions, food, hotel and others also saw a boost up to $1.14 billion, $166 million and $215 million respectively.
Tom Reeg, CEO of Caesars Entertainment, commented:
“Our first quarter results improved significantly versus the fourth quarter of 2020 as the pace of vaccinations across the country accelerated, and consumers started to resume more normal behaviour. We are excited to see the dramatic improvement in operating efficiencies throughout our enterprise which we believe are sustainable going forward.”
Furthermore, the company also released a comparative breakdown on a same-store basis, which incorporated all of the results for ongoing operations added onto those of the legacy business before the Eldorado merger was completed.
Based on this, the revenue went down by 16% to $1.86 billion, compared to $2.21 billion in 2020, as its Las Vegas division was down by 39.5% to $497 million, and regional stayed stable at $1.26 billion.
Caesars CFO, Bret Yunker, further noted:
“We are excited about the ongoing improvement in operating trends which we expect will lead to increased free cash flow generation. We ended the quarter with $1.8bn of unrestricted cash and our revolver availability remains unchanged at $2.1bn.”