Caesars Entertainment has delivered its first-quarter financial results, with the company registering a 19% jump in its online gaming unit and its results, pointing to what could be a far more sustainable future for this part of the company’s business.
Caesars Digital, as the division is known, encompasses both the iGaming and sports betting business, under Caesars Sportsbook. The results put Caesars Digital at $48 million in terms adjusted earnings before interest, taxes, depreciation, and amortization, with sales hitting $335 million over the three-year period.
Caesars Digital in Focus as Results for Division Healthy
CEO Tom Reeg has remained upbeat about the recent results and drew attention to the fact that his company was fully committed to delivering on the results it put down in its financial forecasts, a trend that started in 2021 he noted, and one that should not surprise anyone.
“The goals are in our windshield now as we approach them. And we’ll see where we’re at when we get there in terms of are we getting value for what we’ve created,” he said, with speculation abounding that Caesars Digital may be spun-off to become its independent division, as it is probably able to maintain operations without needing the backing of its land-based-tethered parent company.
Caesars Digital has been the subject of other speculation, too, with analysts suggesting that the company is still underperforming, possibly owing to its weaker performance in the sports betting vertical, which has been traditionally dominated by majors such as FanDuel and DraftKings.
With Carl Icahn, a major shareholder, joining the board of directors, onlookers suggested that he may be looking to enact changes that allow it to boost profitability. Caesar’s stock did not react to the company’s news about delivering on its financial results.
Reeg was keen to put shareholders’ worries to rest, acknowledging that the company was looking to boost value for its backers, but at the same time, remaining laser-focused on its core mission, which is to ensure that the company meets its forecasts.
Delivering on Stated Financial Goals Remains Top Priority for Caesars
“We’ve hit our goals, and we’re moving through them, and we’re just not seeing it in the equity.” Again, I’ll tell you, we will look at any options to create value for shareholders. But we are mindful that the first thing we need to do is continue to deliver numbers on the path that we have,” Reeg stated.
With iGaming set to become an ever more important part of the business in the United States, Caesars has this going for itself. A far more challenging outlook remains sports betting, which is increasingly challenged by rival companies in the sector, and the emergence of prediction market platforms, which seem to be here to stay, adding a fresh source of pressure for entities that control a smaller share of the market..