Caesars’ GGR fell 3.1% in Q1 as digital failed to offset land-based declines

Revenue was $54 million lower than the $2.83 billion Caesars recorded in the first quarter of last year. The group said revenue declined in each of its major reporting areas, including casinos, food and beverages and hotels.

These numbers were adjusted to account for Rio All Suites & Casino’s operating results. Results for the first quarter of 2023 include these numbers and, if left unadjusted, would have resulted in a smaller revenue decline of 1.2%.

Caesars’ largest segment of decline in the first quarter was Las Vegas, where sales were down 9.1% year-over-year on an adjusted basis, primarily due to lower table holds. Excluding the Rio adjustment, Las Vegas revenue was down just 4.5%.

Sales in the regional segment also fell by 1.7% year-on-year due to bad weather.

Even better for Caesars is its continued growth in the digital sector. Here, revenue increased by his 18.5%, with strong growth in both online sports betting and casino.Caesars tooOnline sports betting begins in North CarolinaDuring the first quarter, the Group incurred a loss due to initial costs related to start-up.

Digital Products Caesars CEO laments ‘kitchen sink’ type quarter

Caesars CEO Tom League reflected on the quarter and acknowledged struggles across the company’s ground business. He described the first quarter as a “kitchen sink” quarter for Caesars, with everything that could go wrong happening.

“The biggest factors are decided in Las Vegas, the weather around the country, and the losses before and after the launch of North Carolina on digital,” League said. “His three big things were the hold, the weather, and the launch in North Carolina, which cost him over $75 million.

“Las Vegas’ first quarter operating results combined record occupancy from Super Bowl and Lunar New Year international visitors, offset by lower-than-expected occupancy. Our Regional Segments ‘s results reflected weather-related weakness in January and early February, partially offset by new property openings.

“Caesars Digital delivered strong revenue growth despite lower-than-expected online sports growth due to unfavorable results from the Super Bowl and March Madness.”

But League said Caesars rarely reports quarterly results like this. He added that he is optimistic about the rest of the year.

“While we have overcome the headwinds of the first quarter, we remain optimistic about improving our performance throughout the year,” Rieg said. “We feel really good about where we sit and where we are for the rest of the year.”

Digital Products The first quarter was the lowest on land.

Starting with how revenue is generated, approximately $1.54 billion came from casinos, down 3.2% year over year. Food and beverage revenue also decreased 1.2% to $422 million, and room revenue also decreased 2.0%. Other revenues also fell by 7.3% to $292 million.

On a segment-by-segment basis, Regional remains Caesars’ primary source of revenue at $1.37 billion. This is despite the fact that in the first quarter he reported a decline of 1.7% against the backdrop of adverse weather conditions in various regions. Reag said profits here would have been higher than last year, excluding the impact of the weather.

“We are optimistic about the rest of the year, especially the second half,” Reag said. “We continue to believe that Regional will grow on a year-round basis.”

For Las Vegas, sales decreased 9.1% to $1.03 billion. Here, slot sales were flat compared to last year, but the industry was hit by singer Adele’s decision to postpone her date at the Colosseum at Caesars Palace until the end of the year.

Additionally, Caesars expects the first quarter of 2023 to be as tough as the same period last year, when Las Vegas hosted several big events, including a Taylor Swift concert at Allegiant Stadium and a local NCAA Tournament game. faced the situation.

“People are still here. They just couldn’t hold on,” League said. “And given that he runs these facilities at over 97% occupancy, they are well staffed. There is no opportunity to take back the hold. This is particularly negative in terms of operation.

Digital Products A digital dream for Caesars

When it comes to digital, Caesars’ situation is very different.Revenue for the first quarter was up 18.5% to his $282 million, and growth was also seen. Continuing from 2023. Online sports betting revenues increased by 23.0%, and Internet casino revenues also increased by 54.0%.

Despite the initial rollout costs, League says launching in North Carolina will benefit Caesars in the long run. He says the launch was much more successful than he expected in terms of customer acquisition.

In the longer term, Caesars plans to launch a new icasino brand in late 2024. Furthermore, immediately after the end of the first quarter,Upgraded Caesars Palace Online CasinoEquipped with “Multi-lobby navigation”.

addMobile sports betting begins in Q1 at Harrah’s Gulf Coast Hotel & Casino in Mississippiand there is even more reason to be optimistic about further growth.

“We feel very, very, very good about what’s going on in the digital industry,” League said. “It’s very consistent with the progress we’ve made against the markers we placed when no one else was placing similar markers in the space.”

Net loss widens to $158 million

Turning to first quarter spending, operating costs increased 1.4% to $2.26 billion. Caesars’ main expense remains its casino division, which rose 2.9% to $852 million, outpacing general and administrative expenses of $500 million.

Caesars said other finance-related expenses increased an additional $612 million, which was 22.3% lower than last year. As a result, pre-tax losses for the quarter amounted to $127 million, an improvement from the $185 million loss recorded in the first quarter of 2023.

But while Caesars paid $15 million in taxes, it received $49 million in tax breaks last year. This also includes a $16 million loss from non-controlling shareholders. As a result, the first quarter ended with a net loss of $158 million (compared to $136 million in the same period last year).

Additionally, same-store adjusted EBITDA decreased 9.9% to $853 million in the quarter.