Caesars Entertainment Casinos has been doing an excellent job for the past year, and that is clearly visible in the unaudited financial results for 2018 that they had recently published. One thing that stands out is the year-on-year increase of 2.7%, which resulted in net revenues of approximately $8.39 billion.
The casino corporation published a report on Thursday as a part of an official press release which states that they managed to collect $224 million in enterprise-wide net revenues. One of the main reasons for those outstanding results is purchasing Centaur Holdings, which is an operator from Indiana. According to the firm, its Las Vegas operations managed to record a year-on-year rise of 2.5%, which translates to takings of approximately $3.75 billion. Moreover, other businesses of Caesars Entertainment Corporation which are located inside the United States managed to have a 4.2% rise which resulted in about $4.04 billion.
It’s not all sunshine and rainbows
The company from Nevada stated that the results may look good on the surface, but that the reality is a little bit different. When Centaur Holdings and Las Vegas are taken out of the picture, other businesses they own in the US actually show a drop of 1.6% in year-on-year comparison. They stated that the main result for this drop was the “increased competition” that had appeared in places such as Atlantic City. AC is definitely one of the most competitive places at the moment as casinos there are all doing a pretty good job in attracting new customers and promoting their services and products. Nevertheless, they are likely to overcome this problem as all other results show a significant improvement.
Frissora is content
Mark Frissora, CEO of Caesars Entertainment, is known all over the casino industry as a very outgoing person who is always happy to discuss business with everyone. He stated that the results that were received for 2018 actually represent the fourth year straight where the corporation managed to have higher net revenues.
In his statement, he said that Caesars Entertainment Corporation’s solid performance was a result of further improvement of labor productivity and over $140 million of marketing efficiencies. Furthermore, he added that their casino properties, including the ones in Las Vegas and Indiana, had also performed pretty well.
All things considered, the company has managed to gain a net income of $303 million, which is a huge improvement given that they had a deficit of $368 million in 2017. Firssora stated that 2019 would be the year when Caesars Entertainment Corporation would implement more efficiency, as well as growth initiatives such as expanded sportsbetting services. Furthermore, he stated that the company would make additional value-added investments and that one of the targets for investments would be Caesars Forum meeting center which is located on the Las Vegas Strip. In fact, Frissora said that the priority of the company for the next couple of years would be to de-lever the balance sheet.
There is no doubt that some turbulent times are behind Caesars at the moment, but the future is unpredictable and could bring a lot of potential hardships. Officials will have to put a stop to any issues and take the right steps in order to help Caesars remain what it is today – one of the most popular casino companies in the world. It is also true that competition had been stronger than ever in the USA and that it takes both efficiency and creativity to outsmart them and remain in the leading position.