Caesars Entertainment reported declines in fourth-quarter revenue and adjusted earnings, while net income showed a gain. The company released its fourth-quarter results ahead of its earnings call late Tuesday.
Net revenues were $2.8 billion versus $2.83 billion for the fourth quarter of 2023. Same-store adjusted EBITDA was $882 million versus $924 million for the comparable prior-year period. Caesars Digital adjusted EBITDA was $20 million versus $29 million for the comparable prior-year period.
In contrast, net income of $11 million compared to a net loss of $72 million for the comparable prior-year period. For the full year, net revenues were $11.2 billion versus $11.5 billion.
Net loss was $278 million compared to a net income of $786 million, with the decrease primarily driven by the release of $940 million of valuation allowance against deferred tax assets associated with its REIT leases in the prior year.
Same-store adjusted EBITDA of $3.7 billion compared to $3.9 billion for the prior-year period.
Caesars Digital adjusted EBITDA was $117 million versus $38 million for the comparable prior-year period.
“Fourth-quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong ADRs and competitive pressures regionally offset partially by the openings in New Orleans and Danville late in the quarter,” said Tom Reeg, CEO of Caesars Entertainment. “Caesars Digital was negatively impacted by sports betting customer-friendly outcomes in both October and December, offset by over 60% growth in igaming net revenues.”
Reeg said as they look ahead to 2025, the brick-and-mortar operating environment remains stable and they’re expecting “another year of strong net revenue and adjusted EBITDA growth in our digital segment. When combined with lower capex and cash interest expense, 2025 is expected to deliver significant free cash flow, which we expect will be used to further reduce leverage.”
As of December 31, Caesars had $12.3 billion in aggregate principal amount of debt outstanding. Total cash and cash equivalents were $866 million, excluding restricted cash of $150 million.
“During the fourth quarter, we used the WSOP and Promenade sale proceeds to permanently reduce debt by $500 million, in addition to repurchasing $50 million of our common stock,” said Chief Financial Officer Bret Yunker. “Our 2024 refinancings have positioned the company to benefit from significant reductions in cash interest expense in 2025 and have extended our closest maturity to 2027. We continue to forecast 2025 full-year capital expenditures of $600 million, excluding any remaining spend on Caesars Virginia.”
