Caesars Posts Good Q3 Results, Anticipates Strong Finish of 2023

The leading gaming and entertainment company, Caesars Entertainment, released its latest trading update Tuesday. The company unveiled details regarding its third quarter results, pointing to strong performance and an increase in net revenues. Overall, Ceasars’ net revenues for the three months ended September 30, 2023, were just shy of $3 billion. The company’s $2.99 billion in revenue result marked a strong 3.7% year-over-year increase when compared to the $2.89 billion in revenue reported for the same period in 2022.

A breakdown of the total showed that the company enjoyed growth within all of its operating segments. The biggest increase in revenue for Caesars came from its managed and branded operations which posted $98 million in revenue, an increase of 40% when compared to the $70 million result from Q3 in 2022.

Not unexpectedly, the company’s Las Vegas operations surpassed $1 billion in revenue during the latest quarter. According to the company’s unaudited report, the revenue of its Las Vegas operations hit $1.12 billion in Q3 this year. A comparison to the $1.08 billion result for the same segment from Q3 last year shows an increase of 4.0% this year.

On the other hand, Caesars’ regional operations also performed well during the latest trading period. Overall, the company’s regional revenues hit $1.57 billion, up by 2.3% when compared to the Q2 2022 result. The revenue posted by Caesars’ regional operations marked the biggest share of the total revenue.

Caesars Digital revenue increased in Q3 as well. For the third quarter of this year, the revenue reported by the company’s online operations hit $215 million, up by 1.4% when compared to the $212 million result reported for the same period last year.

An All-Time Consolidated Adjusted EBITDA Record

Bret Yunker, Caesars’ chief financial officer, commented on the topic in a statement. He explained: “We continued to simplify our capital structure through the repayment of our $250 million Baltimore Term Loan during the third quarter, bringing aggregate debt reduction to over $600 million year to date, and reducing total net leverage under our bank credit facility to 3.9x as of September 30, 2023.”

Tom Reeg, Caesars’ CEO, praised the latest results, outlining that the company was able to achieve an all-time consolidated adjusted EBITDA record for the third quarter of this year. He spoke about the growth of revenues posted by Ceasars Digital, as well as the company’s Las Vegas and regional operations. Reeg also pointed to the all-time quarterly adjusted EBITDA record achieved by the company’s regional operations confirming that it was the result of investments.

“During the third quarter of 2023, the Company achieved an all-time consolidated Adjusted EBITDA record.“

Tom Reeg, CEO at Caesars Entertainment

Anthony Carano, the company’s chief operating officer and president, discussed the latest results during an earnings call on Tuesday. He highlighted the ongoing strong demand for the company’s services. At the same time, Carano said that Caesars remains committed to cost efficiencies and reaping the benefits of different investments. He also thanked the company’s team members and predicted a strong finish for 2023.