US casino operator Caesars Entertainment delivered a solid quarter of revenue and EBITDAR growth in the first quarter of 2019, driven by strong contributions from its Las Vegas gaming business, the acquisition of Centaur (a smaller US gaming company), as well as operating and corporate efficiencies.
Net revenues increased 7.3% to US$2.1 billion, while income from operations increased 92% to US$240 million.
Caesars said the increase in Las Vegas revenues was primarily due to favorable hold, improved slot volumes, and higher hotel revenues.
Eric Hession, the executive vice president and chief financial officer of Caesars, said that the results from its Las Vegas operations were partially offset by the impact of competition in Atlantic City, and weather-related property closures.
The company reported an increased net loss attributable to Caesars of US$217 million, due to the change in fair value of a derivative liability, increases in interest expenses related to the failed sale-leaseback financing obligations for Octavius Tower at Caesars Palace and Harrah’s Philadelphia Casino and Racetrack, and an increase in the floating London Interbank Offered Rate on a senior secured credit facility.
The company recently appointed a new chief executive officer, Anthony Rodio to take the helm of the company. He was present at the investor earnings call and spoke briefly. (AGB)