Caesars Entertainment posts $926m loss in Q3
Company’s Las Vegas properties see revenue drop 60% from Q3 2019
Caesars Entertainment, Inc., on Thursday said it had a net loss of $926m in the quarter ending Sept. 30, 2020, a dramatic drop-off from the $37m in net income posted in the third quarter of 2019.
The company noted some of the figures were difficult to compare year-over-year due to merger and acquisition activity during the quarter. It closed the merger of Eldorado Resorts, Inc., and Caesars Entertainment Corporation (which it refers to as “Former Caesars” in its earnings release) on July 20. In addition, the company announced an all cash offer to acquire William Hill, and it agreed to sell Tropicana Evansville for $480 million to Gaming and Leisure Properties and Twin River Worldwide Holdings.
In an effort to provide some clarity to investors, Caesars made reference to “same store” results for properties that were in continuing operation as part of the company. For those properties, net revenue was $1.8 billion, with a net loss of $1.1 billion. In its Las Vegas segment, the company reported revenue declined 60% during Q3 and adjusted EBITDA declined 83%.
The company reported it raised $1.9 billion of new equity on Oct. 1, 2020.
“Our third quarter was a busy period for the company,” Tom Reeg, Chief Executive Officer of Caesars Entertainment, said in a statement, noting 55 of its 56 properties have reopened from pandemic-related shutdowns. “Operating results continue to improve sequentially. Regional markets continued to outperform destination markets and we remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially in Las Vegas.”
Caesars added it entered into a multi-year sports betting partnership with ESPN during the quarter. The agreement includes link integrations from ESPN’s digital platforms to sportsbooks from William Hill, Caesars’ sports betting partner.
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