For the full year ended December 31, 2020, Caesars Entertainment reported net revenues of $3.5 billion and a net loss of $1.8 billion on a GAAP basis.
CEO Tom Reeg With Positive Outlook for Las Vegas
On February 25, Caesars Entertainment posted its operating results for the fourth quarter and year ended December 31, 2020. Net revenues in 4Q2020 amounted to $1.5 billion, up 152.9% on a GAAP basis. Same-store net revenues decreased by 37.5% to $1.6 billion quarter-over-quarter.
The company reported a net loss of $555 million in the last quarter of the year compared to net loss of $13 million for the comparable prior-year period. Adjusted EBITDA stood at $296 million on a GAAP basis, up 91% year over year.
“Our fourth quarter was negatively impacted by additional Covid-19 restrictions implemented in several states starting in November. Early results in the new year indicate a strengthening of consumer demand as restrictions have been lifted and demand levels normalize, especially at our regional, non-destination properties.”Tom Reeg, CEO of Caesars Entertainment
The Las Vegas Strip will recover to pre-Covid levels before 2023, Caesars Entertainment CEO Tom Reeg told the investment community.
Beginning of 2021 Marks Record Hotel Room Bookings
However, 2021 started on a positive note with a large increase in the number of hotel room bookings “almost like a light switch was flipped”, in Reeg’s words. Nine of the company’s top 10 room booking days took place in February. In terms of activity, February even exceeded June, when the state reopened after a 78-day gaming shutdown.
Full-year net revenues stood at $3.5 billion, an increase of 37.4% on a GAAP basis. Same-store net revenues decreased by 42.5% to $6.1 billion in annual terms. Net loss amounted to $1.8 billion compared to net income of $81 million for the comparable prior-year period.
Adjusted EBITDA increased from $697 million last year to $737 million in 2020 on a GAAP basis. Same-store Adjusted EBITDA was $1.1 billion versus $3.0 billion for the comparable prior-year period.
Some of the highlights in 2020 are the joint venture between William Hill and Caesars, which is currently operational in fifteen states and Washington D.C. In addition, Caesars Entertainment is currently operating mobile online sports betting in twelve jurisdictions and is expected to be operational in twenty jurisdictions by year end.
The beginning of 2021 was marked by another key agreement. Carousel Group and Caesars Entertainment inked a 10-year partnership to bring the online sportsbook – SportsBetting.com – to customers in New Jersey, Indiana and Iowa.