A dramatic change of fortunes mid-quarter was reflected in Caesars Entertainment Corporation’s Q1 update this week, showing decline in net revenue, income from operations and adjusted EBITDA.
According to the firm net revenues decreased 13.6% to $1.83bn, while the loss from operations was $66m. Net income attributable to Caesars was $189m, with basic earnings per share totaling $0.28. Adjusted EBITDA, meanwhile, decreased 46.8% to $299m.
CEO Tony Rodio told investors that the public health emergency caused by COVID-19 had created extraordinary challenges and was impacting all aspects of society, including Caesars’ business.
He said: “While we posted our best operating performance since 2008 in the first two months of the quarter, circumstances changed dramatically in March as we temporarily shut-down all of our casino properties, consistent with directives from various governmental and tribal bodies.
“Our first quarter performance reflects the significant revenue declines we experienced as a result of the closures and stable year over year labor costs in March as we continued to provide pay and benefits to our team members for the first two weeks of the closure period.”
Looking ahead to the recovery process he continued: “We are taking steps to prepare for reopening, when appropriate, with the health and safety of our employees and guests in mind. We are also aggressively managing all of our operating levers to strengthen our financial position and enhance our ability to reopen and recover, including making the difficult but necessary decision to furlough the majority of our team members.
“We look forward to welcoming back employees and guests at the appropriate time, and we believe our deep connection with our guests and the geographic diversity of our network positions us well when that time arrives.”