\nCaesars Entertainment Corp. lost $908.1 million in the third quarter despite a 6 percent increase in revenue, the casino company said Monday.<\/p>\n
\tThe financial results were somewhat overshadowed as Las Vegas-based Caesars said it was continuing formal negotiations with lenders and creditors aimed at reducing the company\u2019s gaming industry high debt.<\/p>\n
\tIn the quarter that ended Sept. 30, Caesars said its debt was $22.88 billion, down from $24.2 billion at the end of June.<\/p>\n
\tThe company has been in private talks with banks and lenders since September with the hopes of restructuring a portion of the debt. Bloomberg News has reported the discussions cover $18.3 billion.<\/p>\n
\tOn a conference call with analysts Monday, Caesars Entertainment Chairman Gary Loveman said the casino operator wouldn\u2019t provide any further information about the negotiations. He said the company was \u201ckeenly focused on deleveraging\u201d the balance sheet.<\/p>\n
\t\u201cWhile it is premature to report on the details of these negotiations with creditors, it is fair to say that the talks have been constructive,\u201d Loveman said. \u201cFurther, we are intensely focused on ensuring operating costs are aligned with the current environment to enhance (Caesars) profitability.\u201d<\/p>\n
\tLast month, Caesars said in a filing with the Securities and Exchange Commission that one of lenders \u2014 reportedly a New York-based hedge fund \u2014 walked away from the talks.<\/p>\n
\tCaesars operates more than 50 casinos nationwide, including nine resorts on or near the Strip. The company said its net loss for the quarter was 19.3 percent higher than its net loss of $761.4 million in the same quarter a year ago.<\/p>\n
\tThe loss translated into a net loss per share of $6.29.<\/p>\n
\tNet revenue for the quarter, however, was $2.212 billion, fueled mainly by increases from the company\u2019s social and mobile gaming operations.<\/p>\n
\tLoveman said the increase in revenue reflected \u201cstrength in the interactive business, stabilizing trends regionally, and generally good performance in Las Vegas.\u201d<\/p>\n
\tHe said an \u201cunfavorable hold\u201d in the casino at Caesars Palace cost the company $35 million in operating income during the quarter. Loveman told analysts the company was encouraged by year-over-year increases in key Las Vegas tourism indicators, including Strip hotel occupancy, airport traffic, average daily room rates, revenue per available room, and convention attendance.<\/p>\n
\tAmong the company\u2019s Strip operations are Bally\u2019s Las Vegas, Harrah\u2019s Las Vegas, Caesars Palace, the Flamingo, and the off-Strip Rio.<\/p>\n
\t\u201cThe trend reinforces our confidence in the investments we have made on the Strip,\u201d Loveman said. \u201cOur new investments in Las Vegas have added significant value to our portfolio.\u201d<\/p>\n
\tIn addition to poor hold on wagers at Caesars Palace, several properties had hotel rooms taken out of service during the quarter due to renovations.<\/p>\n
\tThe room re-modelings will continue for several quarters, however, Loveman said the company continues \u201cto view the Las Vegas market with optimism.\u201d<\/p>\n
\tCaesars Acquisition Co., which is 58 percent owned by Caesars Entertainment, said its net income in the quarter of $2.8 million, or 2 cents per share, in its third quarter.<\/p>\n
\tThe company, which operates as Caesars Growth Partners, said its net revenue in the quarter was $485.8 million, an increase of 49.1 percent. The company\u2019s casino operations benefited by the reopening of the Cromwell in May and opening of the Horseshoe Casino Baltimore in August.<\/p>\n
\tRevenue from the company\u2019s interactive gaming division, which includes the World Series of Poker, WSOP.com in Nevada and online gaming in New Jersey, grew almost 105 percent to $161.6 million.<\/p>\n
\tDuring a conference call with analysts, Caesars Growth CEO Mitch Garber said the company would continue to be active on the acquisition side, primarily in the interactive business.<\/p>\n
\t\u201cFor us it\u2019s been a buyers market all along, because we complemented the businesses that we have bought,\u201d Garber said.<\/p>\n
\tCaesars Acquisition reported earnings before the stock markets opened. Shares of the company fell 6 cents or 0.58 percent to close at $10.31 on the Nasdaq. Caesars Entertainment, which is also traded on the Nasdaq, saw its share price decline 56 cents or 4.63 percent to close at $11.54. The company reported earnings after the markets closed.<\/p>\n
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