- Caesars Entertainment reports net loss of $532 million from the first half of 2019
- Despite the slump, new CEO, Tony Rodio, praised the business for a solid performance
- The enterprise announces working towards merging with Eldorado Resorts
United States casino titan Caesars Entertainment reported a net loss of $532 million dollars, which occurred during the first half of 2019 and despite their yearly increase in revenue. Their casino operations on the Las Vegas market remain the prime mover of their income and generated $2.21 billion in revenue for the enterprise during the first half of the year, as compared to $2.04 in the previous year.
Caesar’s Operations Keep Growing but so do Operational Costs
These results came to light following the casino giant’s new CEO, Tony Rodio, hailing a solid performance of the enterprise in the second quarter of the year. The new executive officer, who stepped in just a few months ago, remained positive despite the results and addressed the matter openly.
The slump came about due to higher losses in certain areas, which stood at $5 million last year but have skyrocketed to $532m in the first two quarters of 2019. Loss prior to tax also slumped drastically, going from $28 million to $622m.
Despite the reported loss, Caesars Entertainment generated a total revenue of $4.34 billion during the first two quarters of 2019, which compared to the results from June 30, 2018 also marks a spike of a quarter billion dollars. As a matter of fact, all of the areas of their business experienced a notable growth. Room revenue went up from $755 million to $793m, while the food and beverage court spiked up to $805 million with more than a quarter million growth in comparison to 2018.
“Caesars delivered solid financial results in the second quarter driven by the contribution from Centaur and strength from our Las Vegas hotel and food and beverage businesses,” Tony Rodio said.
Net income generated from Las Vegas alone saw a jump of 12.2% to $184 million, while operations in other states improved on a loss of $9 million with $16m.
Tony Rodio added that the results we’re seeing are in part due to the competition in Atlantic City and other regions. He also reasoned that the second quarter of 2019 beat the all-time quarterly records in terms of hotel cash and occupancy revenue.
Caesar in Search of the Golden City
Although things were not looking so great for the first half of 2019, these results are far from casting a shadow over the business. After all they’ve recovered from far worse situations. In fact, the enterprise is looking forward to new horizons, as Rodio explained that they are working towards the successful completion of a merger with Eldorado Resorts. The CEO also pointed out that the management team and himself are working on panning out the operations of the business.
The merger’s estimated value stands at approximately $17.3 billion and entails Eldorado Resorts’ complete acquisition of all outstanding shares Caesar shares for $12.75 per part.