\nCaesars Entertainment, the debt-saddled operator of many of the Strip\u2019s most iconic resorts, reported its third quarter earnings today.<\/p>\n
\tCompany: Caesars Entertainment Corp. (NASDAQ: CZR)<\/p>\n
\tRevenue: $2.2 billion, up 6 percent from the third quarter of 2013.<\/p>\n
\tLoss: $908.1 million, up 19.3 percent from the same quarter last year.<\/p>\n
\tLoss per share: $6.29, up 4.3 percent from the same period last year.<\/p>\n
\tWhat it means: Caesars has begun formal discussions with some creditors as it seeks to \u201cimprove the financial condition\u201d of the company, CEO Gary Loveman said in prepared remarks to analysts. The company is trying to get a handle on its debt of more than $20 billion. Loveman could provide few details becasue the negotiations are ongoing.<\/p>\n
\tLoveman said he was \u201cencouraged\u201d by improvements in important Las Vegas tourism indicators, such as Strip hotel occupancy and convention attendance. Caesars properties on the Strip saw 2 percent growth in lodging revenue, but encountered some setbacks, he said.<\/p>\n
\tOne of those was room closures associated with the former Quad\u2019s transformation into the Linq Hotel, which Loveman said resulted in a $7 million to $10 million hit on revenue, as about half the property\u2019s rooms were closed. Nonetheless, the casino there fared well: slot and table game volumes increased by 26 percent and 22 percent, respectively.<\/p>\n
\tCaesars Palace had an especially rough quarter, Loveman said.<\/p>\n
\tCeline Dion had to cancel many of her shows to focus on her husband\u2019s health, resulting in an unfavorable impact on hospitality revenues. Furthermore, Caesars Palace suffered about $35 million in unfavorable hold.<\/p>\n
\tBeyond Las Vegas, Loveman said, the opening of Caesars\u2019 new Maryland casino, Horseshoe Baltimore, has been a success. That helped drive a 0.3 percent increase in Caesars\u2019 casino revenue.<\/p>\n
\tIn Atlantic City, Caesars had to ramp up marketing expenses following its closure of the Showboat earlier this year. The increased marketing was aimed at retaining guests at its other Atlantic City properties: Harrah\u2019s Resort Atlantic City, Caesars Atlantic City and Bally\u2019s Atlantic City.<\/p>\n
\tCaesars Interactive, the company\u2019s digital gaming wing, boasted a strong performance for the quarter. Its revenue increased 105 percent, with social and mobile games recording a 103 percent revenue increase from the same period last year.<\/p>\n
\tThe company also announced this afternoon that Chief Financial Officer Donald Colvin is retiring effective Dec. 31. He will be replaced by Eric Hession, the company\u2019s senior vice president and treasurer, pending regulatory approval.<\/p>\n
\tQuote: \u201cOur third quarter results reflect strength in the interactive business, stabilizing trends regionally, and generally good performance in Las Vegas…Moving forward, we see several dynamics that bode well for our future, including signs of improvement in regional markets given limited supply growth and greater traction from our investments in hospitality and entertainment offerings across our network. We expect progress on these fronts to yield a positive effect on our business, as we continue capital structure initiatives intended to reduce leverage at (Caesars\u2019 operating company).\u201d \u2014 CEO Gary Loveman<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
Caesars Entertainment, the debt-saddled operator of many of the Strip\u2019s most iconic resorts, reported its third quarter earnings today. Company: Caesars Entertainment Corp. (NASDAQ: CZR) Revenue: $2.2 billion, up 6 percent from the third quarter of 2013. Loss: $908.1 million,…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8297","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8297"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8297\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}