November 7, 2019 Casino, Legal, Land Based

Eldorado reports net revenue drop ahead of pending Caesars merger

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Eldorado Resorts' Q3 net revenue fell 4% year-on-year to $663.2m as it looks to seal its merger with Caesars Entertainment by H1 2020.

The operator reported EBIDTA of $197.8m, up 8% year-on-year on a same-store basis, while operating income rose 37% to $124.9m.

Eldorado saw net revenue decline in all five regions (West, South, Midwest, East, Central).

Eldorado expanded its sports wagering footprint in the quarter at six more properties in Iowa, Indiana and Mississippi.

Thirteen Eldorado properties now offer sports gambling.

The reports come at a crucial time for Eldorado as it undergoes a pending $17.3bn acquisition of Caesars.

Investors from both groups are expected to vote on the proposed deal next week.

Eldorado CEO Tom Reeg has expressed optimism of a closed merger by the end of Q1 2020.

Reeg said: “We remain confident that the national, multi-brand footprint across all major and regional markets created by the combination of Eldorado Caesars is a strategically, financially and operationally compelling opportunity that is expected to deliver value to shareholders and stakeholders of both companies.”

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