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LAS VEGAS - Caesars Entertainment (NASDAQ:CZR) reported a second-quarter loss that fell short of analyst expectations, despite revenue slightly exceeding forecasts. Shares fell 1.6% following the announcement.
The casino operator posted a loss of $0.39 per share for the quarter, significantly below the analyst estimate of earnings of $0.06 per share. Revenue came in at $2.91 billion, marginally above the consensus expectation of $2.86 billion and representing a 2.9% increase from the same period last year.
Caesars Digital was a bright spot, with Adjusted EBITDA doubling to $80 million compared to $40 million in the same quarter last year. Digital revenue jumped 24.3% YoY to $343 million. However, the company’s Las Vegas operations saw revenue decline 3.7% to $1.05 billion, while Regional segment revenue increased 3.6% to $1.44 billion.
"Our Caesars Digital segment posted one of its strongest quarters ever, as momentum continues to build toward the financial goals that we originally laid out in 2021," said Tom Reeg, Chief Executive Officer of Caesars Entertainment. "In Las Vegas, we posted solid gaming results in the face of softer market demand in our hospitality verticals."
The company’s same-store Adjusted EBITDA fell 4.1% to $955 million compared to $996 million in the prior-year period. Total (EPA:TTEF) net loss narrowed to $82 million from $122 million a year earlier.
Chief Financial Officer Bret Yunker noted that the company had reduced its debt burden, stating, "We expect to use free cash flow to both reduce debt and opportunistically repurchase our stock."
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