Caesars Entertainment reports mixed Q3 results as Las Vegas revenue falls

Caesars Entertainment reported third-quarter results on Tuesday showing Las Vegas revenue declined 2% year-over-year to $930 million, according to the company.

The operator’s Las Vegas adjusted EBITDA fell 10% year-over-year to $343 million in Q3, while net income dropped 40% to $79 million, the company reported.

Regional properties show growth

Caesars’ regional revenue increased 6% to $1.6 billion in Q3, according to the results. Regional adjusted EBITDA increased 3.5% to $524 million during the quarter.

The company operates 54 total properties across 20 North American jurisdictions, with 46 of those considered regional, or outside of Las Vegas, according to Caesars.

Digital division turns profitable

Caesars Digital posted $326 million in Q3 revenue, a 5% gain year-over-year, the company said. Digital adjusted EBITDA soared 57% to $44 million in Q3.

Net income for the digital division flipped from a $21 million loss in the prior-year period to a $4 million gain in Q3, according to the results.

The company currently offers online sports betting in 28 North American jurisdictions and iGaming in six, Caesars reported.

Fertitta acquisition progresses

Caesars and Fertitta announced a $17.6 billion acquisition in May, expected to close by the midpoint of next year, according to the company. The Federal Trade Commission requested additional materials related to the merger on 17 September, which extended the timeline for antitrust approval by at least 30 additional days.

Caesars shareholders approved the Fertitta merger by a 65% majority on 22 September, the company said.

Caesars ended the quarter with $864 million in cash and cash equivalents against total debt of $11.6 billion, according to the results. The company’s share price has declined from highs of more than $100 in 2021 to about $29 currently.