Caesars Entertainment posts $920m Q2 net income, up from $123m loss
The company has also seen its net revenue, adjusted EBITDA and individual segments experience steady increases year-on-year.
Key highlights
– Q2 revenue up slightly but Caesars net income, in particular, shows massive jump
– Caesars Digital was, once again, not profitable, although it did post positive EBITDA
– Las Vegas brings in $1.13bn Q2 revenue, but regional properties generate $1.46bn
Caesars Entertainment has released its Q2 financial report, posting GAAP (generally accepted accounting principles) net revenue of $2.88bn, a 2.1% rise from $2.82bn revenue in Q2 last year. Net income has also increased, albeit much more significantly, from a prior-year Q2 loss of $123m to income of $920m.
Looking at H1 of 2023, Caesars’ net revenue reached $5.71bn, while net income for the first half of the year sits at $784m (showing the effects of Q1). These figures do represent progress year-on-year as, for H1 of 2022, Caesars had generated 11.7% less revenue ($5.11bn) and had made a net loss, rather than an income, of $803m.
Adjusted EBITDA for Q2 this year was $1.01bn, up from $978m year-on-year. For H1, adjusted EBITDA has reached $1.97bn, which also represents an increase from 2022’s second quarter figure of $1.27bn.
Notable, though, was that Caesars Digital was not profitable this quarter, showing a net loss of $22m for Q2m and a $54m net loss for H1.
Tom Reeg, CEO of Caesars Entertainment, said of the results, “The second quarter of 2023 reflected continued strength in our business. Demand remains strong in both Las Vegas and our regional markets.
“Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings.”
While these projects are not yet complete, in the second quarter this year Caesars also filed for plans to renovate the Horseshoe Las Vegas tower, as well as received support in the form of an open letter from rapper and New York City activist, Jay-Z, for its bid for a casino in the concrete jungle where dreams are made.
The breakdown of Caesars’ segments saw Las Vegas bringing a significant sum of total revenue, with $1.13bn of the $2.88bn total. But regional properties brought in the highest level of net revenue at $1.46bn and Caesars Digital generated $216m.
Of the total net revenue, $1.58bn was also generated by Caesars’ casino gaming, whereas $525m in net revenue came from its hotel segment and $435m was generated by food and beverage sales.
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