By BBBB
Caesars Entertainment has released its latest financial results for the third quarter ended September 30th, 2024 revealing a 3.33% drop in revenues to $2.9 billion.
Overall revenue drop mitigated by 40.9% surge in online revenues
Caesars Digital reported the highest increase throughout the group, a 40.9% increase in net revenues with $303 million generated during the quarter. Online operations also recorded a 2,500% increase in adjusted EBITDA.
Third Quarter 2024 and Key Highlights
- GAAP net revenues – $2.9 billion, down 3.33% year-on-year
- GAAP net loss – $9 million, compared to net income of $74 million Q2 2023
- Same-store Adjusted EBITDA – $1 billion, no change from Q3 2023
- Caesars Digital Adjusted EBITDA – $52 million, up 2,500% year-on-year ($2 million)
Tom Reeg, Chief Executive Officer of Caesars Entertainment, Inc., commented:
“During the third quarter, we delivered another quarter of $1 billion of same-store consolidated Adjusted EBITDA. Results in Las Vegas reflect record third quarter hotel, F&B and banquet revenues driven by strong occupancy and cash ADRs. Regional segment operating results were negatively impacted by new competition, construction disruption and difficult comparisons versus the prior year. Caesars Digital set a new all-time quarterly record for Adjusted EBITDA driven by over 40% growth in net revenues.”
Bret Yunker, Chief Financial Officer added:
“On October 17th, we successfully closed on a new $1.1 billion senior unsecured refinancing which, along with financings earlier in the year, continue to set the stage for significant interest expense savings in 2025.
As of today, we have received $250 million in cash proceeds from the World Series of Poker brand sale. We are excited to be nearing the completion of our multi-year Caesars New Orleans renovation and permanent Caesars Virginia projects,”
WSOP Sale Finalized
Caesars also confirmed the successful completion of its previously announced sale of intellectual property rights for the World Series of Poker (WSOP) brand to NSUS Group Inc. The agreement, as previously disclosed, includes a transaction valued at US$250 million in cash, supplemented by a $250 million promissory note due five years post-closing, backed by the WSOP intellectual property assets involved in the sale.
Under the new agreement, Caesars retains the right to host the prestigious WSOP live tournament series at its Las Vegas venues for the next 20 years. Additionally, Caesars will receive a license from NSUS to continue operating its revamped WSOP Online real-money poker platform in Nevada, New Jersey, Michigan, and Pennsylvania. However, Caesars will be limited in offering online peer-to-peer real-money poker services outside this scope, with certain defined exceptions. Caesars-branded brick-and-mortar poker rooms will continue to showcase the WSOP name, and Caesars properties will maintain preferred status for hosting live WSOP Circuit events.
In alignment with this transaction, several longstanding WSOP executives will join the NSUS leadership team. Ty Stewart will step into the role of Chief Executive Officer for the new WSOP division, with Gregory Chochon taking on the role of Chief Operating Officer. Erik Eidissen will serve as Communications Manager. With over three decades of collective experience managing the WSOP brand, these leaders are set to guide its growth and strategic development under the new ownership.
Agreement to Sell LINQ Promenade
Following the closure of its sale of WSOP, Caesars announced a definitive agreement to sell the LINQ Promenade to a joint venture established between TPG Real Estate (TPG) and Acadia Realty Trust’s Investment Management Platform for a purchase price of $275 million. The transaction, which remains subject to standard regulatory approvals and closing conditions, is projected to finalize by the fourth quarter of 2024.
Tom Reeg, CEO of Caesars Entertainment, Inc said:
“The sale of the LINQ Promenade reflects a strategic move to divest non-core assets, helping us achieve our debt reduction objectives more quickly. I would like to extend my gratitude to the LINQ Promenade team members and tenants for their contributions over the past decade, and I wish them all ongoing success.”
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