Vegas fuels positive start to 2022 for Caesars Entertainment despite losses
Net revenue saw an increase during the first three months of the year, while the company’s net losses increased when compared to 2021.
Caesars Entertainment has released its financial results for the period ending March 31, 2022. These numbers mark a mostly positive period for the company, as the land-based segment continues to grow following a tough two years.
Q1 saw the company record net revenues of $2.3bn, a year-on-year boost from the $1.8bn earned in the prior-year period, with much of this stemming from the operators Las Vegas-based properties.
Same-store adjusted EBITDA came in at $296m versus the $521m recorded during 2021. If one excludes the Caesars Digital segment, which had extremely high marketing spend, same-store adjusted EBITDA was $850m.
Tom Reeg, CEO of Caesars Entertainment said: “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.”
As of the end of Q1, Caesars Entertainment had an outstanding debt of $14.3bn and total cash equivalents of $824m, excluding restricted cash of $451m.
The first three months of 2022 were a busy period for Caesars, as the company launched its sports betting offering in a number of states.
Being one of the first companies to offer sports wagering in New York, Caesars got off to a blistering start, spending extravagantly on marketing, before its rivals in FanDuel and DraftKings made the ground up and ultimately surpassed its market share.
This spending ultimately led to significant losses of $680m for the gaming stalwart, as its attempts to break into the New York market hit a speedbump.
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