Tom Reeg, CEO of Caesars Entertainment (CZR), believes that by the end of 2023, the business’s online gaming products will be profitable, and that the company is considering selling one of its Strop sites, without specifying which one.
“Obviously, the couple of quarters before football season in ’23 tend to be lower volume sports quarters, so lower loss anyway,” Mr. Reeg said. “So is it possible? It sneaks a little bit earlier? I’d say that’s possible. But I’d be banking on inflection in the fourth quarter of 2023 as we sit here today.”
He added: “Of the $553m of EBITDA loss in the quarter, a little over $400m is attributable to the launches in New York and Louisiana, with New York being the lion’s share of that,” Reeg explained. “We cut about a little over a quarter of a billion dollars of expected spend from when we started cutting in February.”
Caesars Entertainment reported $2.3 billion in net revenue for the first quarter ended March 31, 2022, compared to $1.8 billion in the prior-year period.
Revenue in Las Vegas increased by 83.9 percent to $914 million, up from $497 million in the first quarter of 2021. Meanwhile, regional operations generated $1.4 billion in net sales, up 13.5% from $1.2 billion the previous year.
$850 million in same-store Adjusted EBITDA, excluding our Caesars Digital unit, compared to $530 million in the prior-year period.
Mr. Reeg added: “Our first quarter operating results reflect sequential improvement each month of the quarter in revenues and EBITDA. Our Las Vegas segment posted an all-time first quarter EBITDA record and our regional segment delivered solid EBITDA and margin growth. Consumer trends remain healthy and we are optimistic for the balance of the year.”
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