Caesars Entertainment, formerly known as Eldorado Resorts, has reported significant losses across the board in its operating results for the second quarter ended June 30, 2020.
Net revenue for legacy Eldorado Resorts properties came in at $126.5m, a decrease of 80.1% on a GAAP basis and 78.2% on a same-store basis versus the comparable prior-year period.
The consequence was a Q2 net loss of $100m compared to income of $18.9m year-on-year.
Same-store adjusted EBITDA for legacy Eldorado Resorts was negative $10.4m versus positive $164.8m for the comparable prior-year period.
CEO Tom Reeg, updating investors, commented: “Our second quarter operating trends were negatively impacted as the majority of our properties remained closed during April and May 2020. Our properties began to reopen in late May and early June. All of the combined new Caesars Entertainment Inc regional properties are now reopened and we are encouraged by operating trends.”
He continued: “Now that the merger has closed, our operating teams are fully engaged with integrating the two companies and executing on the synergy plans. Our number one priority remains the safety and security of our team members and guests.
“Our COVID-19 operating plans for reopened properties are designed to ensure a safe and exciting environment for our guests. We remain optimistic regarding an eventual recovery of travel and tourism in the US and especially Las Vegas.”
Turning to the firm’s balance sheet and liquidity, it reported that as of June 30, 2020, legacy Eldorado Resorts had $2.7bn of debt outstanding, while total cash and cash equivalents were $950.5m, excluding restricted cash.
CFO Bret Yunker explained: “We have a strong liquidity position which will allow us to weather short term weakness due to COVID-19. For new Caesars Entertainment, Inc. we successfully executed an $8bn debt raise on June 19, 2020 which further enhances our pro forma liquidity.”