Caesars Entertainment Announces Q4 and Full 2018 Results

American gaming corporation based in Nevada, Caesars Entertainment Corporation, which owns and operates more than 500 casinos and hotels…

…has released an official report regarding the company’s financial results in 2018.

The results highlight GAAP and non-GAAP financial measures on a consolidated basis.

GAAP Highlights from Q4:

Looking back at the fourth quarter of 2018, the company’s net revenue increased by 11.3% or $214 million, from $1.90 billion to $2.12 billion.

But, net income in Q4 decreased 90.1% or $1.81 billion, from $2 billion to $198 million, mainly due to a large nonrecurring tax benefit recognized in the Q4 of 2017 relating to US tax reform and CEOC’s emergence from bankruptcy.

Enterprise-wide Las Vegas net revenue in Q4 increased by 7.8% or $69 million, from $880 million to $949 million.

Full 2018 Highlights

The total net revenue for the entire year of 2018 increased by 72.4% or $3.52 billion, from $4.87 billion to $8.39 billion…

…because of the inclusion of the results of CEOC LLC and Centaur Holdings.

Complete net income improved $671 million from a loss of $368 million to income of $303 million.

Enterprise-wide full-year net revenue increased 2.7% or $224 million, from $8.17 billion to $8.39 billion.

“In 2018, Caesars delivered a fourth consecutive year of higher net revenues and adjusted EBITDAR, as well as expanded margins,” said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment.

“Caesars’ solid performance is due in part to further labor productivity improvements and, in 2018, over $140 million of marketing efficiencies. Our casino properties, including in Las Vegas and Indiana, performed well, partially offset by the impact of new competition in Atlantic City,” he added.

New Ventures for Caesars

Caesars Entertainment, in January, penned a historic agreement with NFL (National Football League), US’ top-flight American Football competition. The multi-year contract has given Caesars the status of NFL’s first official casino sponsor ever.

“We also launched the first installments of our asset-lite, branding and licensing strategy by opening the Caesars Bluewaters Dubai Resort, announcing another non-gaming resort scheduled to open next year in Cabo San Lucas as well as a new tribal partnership in Northern California, and our first non-gaming hotel in the U.S., Caesars Republic, in Scottsdale, Arizona,” Frissora added.

Big Plans for 2019

At the beginning of 2019, Caesars signed a deal with Scientific Games regarding launching its sportsbook in Pennsylvania, at Harrah’s Philadelphia Casino and Racetrack.

The sportsbook is powered by SG Digital’s OpenBet platform that will, in the beginning, offer only in-person wagering at the land-based venue’s sports lounge, The Book…

…while online and mobile betting will follow at a later date.

“This year, Caesars will implement more efficiency and growth initiatives, including expanded sports betting. While we will be making additional value-added investments in the business this year, including the CAESARS FORUM meeting center on the Las Vegas Strip, our financial priority over the next few years is to further de-lever the balance sheet,” Frissora concluded.

Source:

“Caesars Entertainment Reports Fourth Quarter and Full Year 2018 Results”, George Miller, europeangaming.eu, February 22, 2019.