LAS VEGAS - Caesars (NASDAQ:CZR) Entertainment, Inc. (NASDAQ: CZR) disclosed its financial performance for the first quarter ended March 31, 2024, revealing a notable earnings shortfall that sent its shares down 3.6%.
The casino and resort giant reported a loss per share of -$0.73, substantially missing the analyst consensus of -$0.05. Revenue for the quarter was reported at $2.74 billion, falling short of the expected $2.82 billion consensus estimate.
The company's revenue decreased slightly from $2.8 billion in the same quarter last year, while its net loss widened from $136 million to $158 million. Adjusted EBITDA from same-store operations also saw a decrease to $853 million from the prior year's $947 million.
Despite the overall downturn, Caesars Digital achieved an adjusted EBITDA of $5 million, a positive shift from the -$4 million reported in the comparable period last year.
CEO Tom Reeg attributed the mixed results to a combination of high occupancy rates in Las Vegas due to the Super Bowl and Chinese New Year, counterbalanced by lower-than-expected hold. He also pointed to weather-related challenges in the Regional segment, which were partly mitigated by new property openings.
Caesars Digital's strong revenue growth was overshadowed by lower-than-expected hold from online sports betting, influenced by unfavorable outcomes during the Super Bowl and March Madness events.
CFO Bret Yunker provided additional insights, noting the recent closure of a $425 million financing deal through the Caesars Virginia joint venture, which will contribute to the construction of a new casino resort set to open in December 2024.
Yunker emphasized the company's commitment to reducing debt through the use of free cash flows, with an estimated cash capital expenditure of $800 million for 2024, excluding joint venture capital expenditures.
Investors reacted negatively to the earnings miss, with Caesars' stock price declining by 3.6% following the announcement. The company's outlook for the remainder of the year remains optimistic, with expectations for improved operating results. However, the first quarter's performance has set a challenging tone for the company as it navigates through the fiscal year.
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