Caesars Entertainment Corporation has been hit with a net loss of $359m in its third quarter of trading, despite seeing net revenues grow 2.3% to $2.4bn. The firm also noted a loss of $68m from its operations, while adjusted EBITDA grew 5.8% to $635m.
Net revenues increased $51m and were driven, said Caesars, by growth in all business verticals, with a significant boost in Las Vegas due to healthy consumer demand. Las Vegas gaming revenues grew 17.3% year over year due to favorable hold and higher gaming volumes. Other US net revenues declined $6m year-on-year due to competition in Atlantic City and Southern Indiana.
All other net revenues decreased $6m year-on-year, primarily due to lower gaming volumes in the UK. Across all of the firm’s casino properties, hold had a favorable impact of $31m to $36m in Q3 compared to the prior year, and was $10m to $15m above the firm’s expectations.
CEO Tony Rodio, mitigating for the losses and talking up some of the more positive aspects of the Q3 performance, told investors: “We are pleased to have delivered solid financial results in the third quarter with net revenue growth across all business verticals, despite headwinds across our portfolio.
“Revenue performance was driven by our Las Vegas region due to increased consumer demand, with particular strength in the hotel business which continues to outpace prior years across properties. Coupled with corporate expense reductions, this led to strong adjusted EBITDA growth as well as margin expansion.”