Caesars reports slow growth and heavy net loss for 2019

February 25, 2020
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Caesars Entertainment saw low full-year growth for 2019, as net revenue increased 4% year-on-year to $8.74 billion.

Caesars' results will come as little surprise to future owners Eldorado Resorts, with the casino operator knowing it will have significant improvements to make at Caesars following its $17.3bn acquisition of the company.

That transaction is expected to be completed in the first half of 2020, with Caesars' final year in its current form seeing full-year income from operations decrease 16% to $618m. 

Equally, full-year net income fell $1.5bn, to a loss of $1.2bn, although non-GAAP adjusted EBITDA was up 4% to $2.41bn.

Despite the removal of its Chairman and CEO Jim Murren, MGM Resorts International achieved both far higher growth and revenue for 2019, rising 10% to $12.9bn.

However, Q4 brought low growth for both MGM (net revenue rose 4% to $3.2bn) and Caesars, which only saw revenue rise 3% to $2.17bn.

For the quarter, Caesars' income from operations did grow 77% to $177m, although net income dropped $502m, to a net loss of $304m.

Non-GAAP adjusted EBITDA rose 3% to $583m for Q4.

Caesars' share price was down from $14.06 at the opening of the market  on Tuesday to $13.31 following its Q4 and FY release.

Eldorado's financial results will be released a day after Caesars'.

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