Caesars reports net loss of $278m during FY2024, revenue decrease of 2.5%

Caesars Entertainment has reported the operator’s financial results throughout the fourth quarter of 2024 and full year (FY), having generated a net income loss of $278m, representing a significant 135.4% decrease year-over-year. The primary reason for the net loss was said to be the release of $940m of valuation against deferred tax assets associated with Caesars’ REIT leases in the prior year. 

“During the fourth quarter, we used the WSOP and Promenade sale proceeds to permanently reduce debt by $500m in addition to repurchasing $50m of our common stock,” Caesars CFO Bret Yunker said. 

“Our 2024 refinancings have positioned the company to benefit from significant reductions in cash interest expense in 2025 and have extended our closest maturity to 2027. We continue to forecast 2025 full year capital expenditures of $600m excluding any remaining spend on Caesars Virginia.”

Throughout FY2024, Caesars managed to generate just over $11.2bn in total revenue which equates to a decrease of 2.5% year-over-year. While the operator’s Las Vegas and Regional segments accounted for the most revenue with reported totals of $4.3bn and $5.5bn, respectively, the figures still represent decreases of 4.4% and 4.1%. Caesars Digital managed to increase its revenue by 19.5% from the prior year period, however, reporting a FY2024 revenue of nearly $1.2bn. 

Caesars’ reported net loss during FY2024 was seen in its corporate and other segment, which generated a net loss of over $1.5bn throughout the period. Caesars Digital, Las Vegas operation and managed/branded each reported net incomes during FY2024, while Regional operations reported a net loss of $18m. 

The operator’s adjusted EBITDA also decreased during FY2024, falling by nearly 5.1% for a reported total of $3.7bn. Las Vegas and Regional operations both saw minor decreases in adjusted EBITDA year-over-year, while Caesars Digital increased its adjusted EBITDA by almost $80m from the figure reported during FY2023. 

Despite the net loss reported during FY2024, Caesars still managed to generate a positive net income of $11m for Q4 2024, increasing from the $72m net loss reported during Q4 2023. Total revenue throughout the period was reported to be $2.8bn, representing a decrease of just 1% from the prior year period. 

Good to know: Caesars sportsbook unveiled its largest-ever prop betting menu for users on January 30 ahead of Super Bowl LIX, which took place in New Orleans between the Kansas City Chiefs and Philadelphia Eagles

Each of the operator’s Las Vegas, Regional and Caesars Digital segments decreased by $20m or less from the revenue figures reported during the prior year period, as Las Vegas operations generated nearly $1.1bn during Q4 2024, while Regional and Caesars Digital accounted for $1.3bn and $300m, respectively. 

“Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs; and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter. Caesars Digital was negatively impacted by sports betting customer friendly outcomes in both October and December offset by over 60% growth in iGaming net revenues,” Caesars CEO Tom Reeg said. 

“As we look ahead to 2025, the brick and mortar operating environment remains stable and we are expecting another year of strong net revenue and Adjusted EBITDA growth in our Digital segment. When combined with lower capex and cash interest expense, 2025 is expected (to) deliver significant free cash flow which we expect will be used to further reduce leverage.”

Caesars’ adjusted EBITDA throughout the fourth quarter of 2024 was reported to be $885m, representing a decrease of 4.8% year-over-year. The operator’s casino operations generated the majority of Q4 2024 revenue, accounting for $1.6bn during the period and $6.3bn throughout FY2024. Hotel operations decreased by $15m year-over-year to generate $494m of revenue during Q4 2024, as well as accounting for $2bn of Caesars’ total revenue for FY2024.

Operating expenses managed to decrease by over $100m year-over-year, but Caesars’ operating income throughout FY2024 still decreased by 6.8% from the prior year period for a total of $2.3bn. 

Kirk Geller

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