Las Vegas tourism boosts Caesars Entertainment Corp

Wednesday, August 7, 2019

Visitors to Caesars Entertainment Corp. ’s Las Vegas properties increased the revenue of the operators of global casino. Thanks to the higher rates for hotel rooms and more spending in restaurants, as the company prepares to be acquired by rival Eldorado Resorts Inc!

Also, Caesars has cut down $25 million in terms of annual costs by thinking that the company’s sale to the regional casino operator, including leaving positions open as employees go away, an attempt that could lead to $50 million in cuts by the first quarter of next year, Caesars Chief Executive Anthony Rodio said in a conference call with Wall Street analysts.

In the three months ended June 30th, Caesars’ revenue increased 4.9% to $2.2 billion. The company reported a net loss of $315 million, against income of $29 million in the year-earlier period. The company accredited the move to a loss to financial rather than operational causes.

Income from operations decreased 4.6% to $269 million.

Revenues were sustained by tourists and group meetings in Las Vegas, including at flagship Caesars Palace. On hotel room renovations, the company has invested $1.2 billion in the last 4½ years, and by the time the Eldorado acquisition closes, around 95% of Caesars properties will have been upgraded, Eldorado of late told analysts. Caesars, like other gambling companies, has focused on hotels, entertainment and restaurants as gambling revenue has declined.

Caesars is designing and constructing nine sports books in Indiana and Iowa to open in September, following a U.S. Supreme Court ruling last year that effectively legalized sports betting. The company expects to offer wagering on sports events in seven states by the end of the year. “We continue to believe that sports betting will be a growth catalyst for the company over the next few years,” Mr. Rodio said.

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