Caesars Entertainment Shares Its Operating Results from Q3 in 2021

Yesterday, Caesars Entertainment shared its operating results from Q3 in 2021, which ended on September 30. The company’s CEO, Tom Reeg, stated that as the results show, Caesars has an all-time EBITDA record in a single quarter in the Las Vegas segment. The regional segment also has a new EBITDA record in the third quarter. According to him, Caesars is encouraged by the results from the launch of Caesars Sportsbook, and Reeg is impatient to see the sportsbook being launched in many other US states in 2022.

Highlights from the Third Quarter in 2021

As the report states, Caesars’ GAAP net revenue was $2.7 billion. In the prior-year period, the company’s GAAP net revenue was $1.4 billion. In Q3 of 2020, the GAAP net loss was $925 million, while the net loss Q3 of 2021 was $233 million.

Next up, the same-store EBITDA for this year’s Q3 was $882 million, while the EBITDA in Q3 of 2020 was $433 million. Without the Caesars Digital segment, the same-store EBITDA was $1 billion, while that EBITDA, in 2020, was $420 million in the same period.

Recently, Caesars even appointed Sandra Douglass Morgan to its board of directors and the new appointment will be effective on November 7. It also released a new CSR Report in which the long-term targets were updated, and ESG achievements were highlighted.

The aggregate principal amount of debt outstanding as of September 30 is $15.2 billion. Cash equivalents and total cash reached $1.1 billion; however, $1.5 billion of restricted cash was excluded. The restricted cash includes the amount for the CRC Notes repayment.

The cash on hand and revolving borrowing capacity of Caesars was $3.1 billion as of September 30. Caesars’ CFO, Bret Yunker, stated that the company has repaid $975 million traditional debt year-to-date as of October 19. The pro forma interest expense has been reduced by around $75 million annually when the traditional debt is combined with the issuance and repricing of Q3 lower-cost debt. Yunker also noted that the company is expecting further deduction in its debt thanks to asset sale proceeds and strong operating cash.

According to the results in the report, Caesars Entertainment’s Q3 losses equal $1.08 per share versus the $0.08 Zacks Consensus Estimate. However, the Q3 report has earnings of -1,450%. In the previous quarter, it was expected that Caesars would have losses of $0.28 per share, but it produced $0.48 in earnings. Speaking on the shares, it is worth noting that they have added 50.9% since the start of 2021 versus the 22.8% gain of the S&P 500.

Caesars is the Largest US Casino-Entertainment Company

Apart from being one of the world’s most diversified casino providers, Caesars is also the US’ largest casino-entertainment company. Ever since its establishment in 1937 (Reno), the company managed to grow thanks to the acquirement of properties, expansions, as well as the development of new resorts.

Some of the amenities that are offered by Caesars include hospitality, gaming, entertainment, as well as a full suite of online betting and online gaming. Moreover, it focuses on building value with its guests by offering a unique combination of bespoke services, technology and operational excellence. Its Caesars Rewards loyalty program also contributes to meeting the expectations of guests.