More US casino companies are releasing their financial statements. Officials within Caesars Entertainment have just revealed the company’s third-quarter reports. Fortunately, the company managed to bring in some serious revenue over 2019’s Q3.
This company is in the middle of some major changes. Today, we’re going to look at Caesars’ third-quarter reports. We’ll also talk about what’s in store for this company in 2020. Let’s get into it!
Quarter Three Proves Successful For Caesars
This week, Caesars Entertainment finally revealed the company’s financial statements for the year’s third quarter. Some analysts were concerned that the company was losing money. It was in the middle of a complete overhaul and many were unaware of the impact that this would have.
Fortunately, things are looking great. These reports show that Caesars generated revenue of $2.24 billion during Q3. This represents a 2.3% increase from the same time period in 2018.
This company also recorded a $68 million operating loss and a net loss of $359 million. Amazingly, Caesars still brought in a profit of $110 million. This is great news for shareholders. Caesars has been working hard to generate revenue in different ways this year.
Tony Rodio, CEO of Caesars Entertainment, commented on the revenue reports to the media this week.
“We are pleased to have delivered solid financial results in the third quarter with net revenue growth across all business verticals, despite headwinds across our portfolio. Revenue performance was driven by our Las Vegas region due to increased consumer demand, with particular strength in the hotel business which continues to outpace prior years across properties. Coupled with corporate expense reductions, this led to strong adjusted EBITDA growth as well as margin expansion.”
Majority of Revenue Came From Las Vegas
Unsurprisingly, the vast majority of revenue came from Las Vegas. It’s clear that Vegas remains the true hub for this company. Revenue from Las Vegas increased by 7% to $973 million.
Gamblers appeared to be unlucky during Q3. Reports show a 17.3% rise in gambling revenue in Las Vegas during these three months. Hotel occupancy was also up three points to 95.6%.
In other parts of the country, things weren’t quite as successful. Revenue from the rest of Caesars’ US operations fell by a little less than 1%. Significant losses were reported in Atlantic City.
Caesars Entertainment’s revenue from online gambling businesses and international casinos fell by 4% to $144 million.
Quarter four should be even better for Caesars. The company is set to receive an additional $516 from the sale of the Rio Hotel & Casino in Las Vegas.
Next year will represent a massive change for this major casino operator.
Caesars Entertainment Set to Merge With Eldorado Resorts
Back in June, Eldorado Resorts announced that it was set to purchase Caesars Entertainment for an astounding $17 billion. It’s the largest merger of two casino companies in history. Initially, it was said that this merger would be finalized before the end of the year.
Things are taking longer than expected, though. Now, it appears that this deal will be concluded sometime in 2020.
These two companies must gain approval from several state gambling commissions before this deal can be finalized. The Federal Trade Commission must also approve the merger. Officials want to ensure that this deal does not create a monopoly-like situation.
Both of these companies are selling properties, too.
Based on multiple reports, Caesars Entertainment is set to be taken over by Eldorado Resorts early next year. We’ll need to wait and see how this affects the US casino industry moving forward.
Q3 proved to be successful for Caesars. 2019’s fourth quarter is likely to be even better. Stay tuned for more US casino news over the next few weeks!