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Caesars Entertainment has released its financial results for the second quarter of 2024. The company reported total net revenue of $2.83bn, a slight decrease of 0.1% year-on-year.
Caesars experienced a net loss of $122m. The decrease was reportedly primarily due to a $940m release of valuation allowance against deferred tax assets associated with its Real Estate Investment Trust (REIT) leases in the prior year.
The operator reported $1bn in adjusted EBITDA for Q2 2024, up 0.6%. The Las Vegas segment saw growth in adjusted EBITDA, driven by same-store revenues, hotel occupancy and an increased Average Daily Rate (ADR). The Las Vegas operations generated $1.1bn in revenue for the quarter.
Caesars Digital reported a 27.8% increase in revenue, totalling $276m for Q2 2024. However, the regional segment faced competition in new markets, partially offset by operations in Danville, Virginia and Columbus, Nebraska. Regional operations generated just under $1.4bn in revenue.
CEO Tom Reeg commented: “We remain optimistic for the balance of 2024 driven by strong operating trends in our Las Vegas and Caesars Digital segments and the expected openings of the permanent facility in Danville coupled with our $430m capital investment in our newly rebranded Caesars New Orleans property.”
In June 2024, Caesars completed the acquisition of WynnBet’s Michigan iGaming operations, which includes a long-term extension of iGaming market access rights with the Sault Ste Marie Tribe of Chippewa Indians.
The company plans to transition WynnBet’s iCasino operations to Caesars’ Michigan iGaming platform under a new brand in the second half of 2024, pending regulatory approvals.
Earlier in 2024, Caesars launched legal mobile sports betting in North Carolina, operating on tribal lands of the Eastern Band of Cherokee Indians and entered the Kentucky sports betting market in September 2023. These expansions are part of the company’s strategy to increase its digital and regional presence.
As of 30 June 2024, Caesars reported $12.4bn in aggregate principal debt, with total cash and cash equivalents amounting to $830m, excluding $129m in restricted cash. The company’s liquidity includes a revolver capacity of $2.2bn, partially offset by commitments to letters of credit and regulatory requirements.
Stock price
Following the release of Caesars’ financial report, it was seen in the week between trade close on Wednesday 24 July and trade close on Wednesday 31 August that stock prices had risen 16.8% to $39.95. This growth was even sharper when compared to trade close on Thursday 26 July, when stock prices were at $33.25, reflecting a growth rate of 20.2%.
