Caesars Entertainment reported record second-quarter adjusted earnings boosted by a strong showing in Las Vegas where its properties set high marks across the board. Regional properties, however, posted a decline.
Caesars reported net revenue of $2.8 billion versus $2.9 billion for the comparable prior-year period. A net loss of $122 million, compared to net income of $920 million in Q2 2023, was primarily attributed to a release of $940 million of valuation allowance against deferred tax assets associated with REIT leases in the prior year.
Same-store adjusted EBITDA was $1 billion versus $1 billion for the comparable prior-year period. Caesars Digital adjusted EBITDA was $40 million versus $11 million for the comparable prior-year period.
Caesars stock closed at $36.90 on Tuesday and went above $38 in after-hours trading. The 52-week high is $58.61, the 52-week low $31.74.
Revenue in Las Vegas grew by 1.9% from the second quarter of 2023 and digital revenue rose by 27.8%. Regional property revenue declined 5.2%. Las Vegas adjusted earnings rose 1.2%, while regional property earnings fell 7.7%.
“Our operating results reflect year-over-year growth in adjusted EBITDA in our Las Vegas segment, driven by record same store revenues, hotel occupancy, and average daily rate,” said Caesars CEO Tom Reeg. “Our Caesars Digital segment posted a new second-quarter adjusted EBITDA record, driven by strong revenue growth and solid flow through.”
Reeg said the regional segment results reflect competition in new markets, partially offset by its temporary facility in Danville, Virginia, and its recently opened property in Columbus, Nebraska.
“We remain optimistic for the balance of 2024 driven by strong operating trends in our Las Vegas and Caesars Digital segments and the expected openings of the permanent facility in Danville coupled with our $430 million capital investment in our newly rebranded Caesars New Orleans property,” Reeg said.
