Caesars Entertainment Inc has reported operating results for the third quarter ended September 30, 2020, showing net revenues of $1.4bn, down 34% on a same-store basis versus the comparable prior-year period.
Updating investors, the firm revealed a net loss of $926m in the quarter compared to net income of $37m year-on-year. Same-store adjusted EBITDA came in at $463m versus $810m in Q3 2019.
CEO Tom Reeg commented: “Our third quarter was a busy period for the company. We officially closed our merger with Former Caesars on July 20, 2020. We announced a recommended offer to acquire William Hill plc on September 30, 2020 and successfully raised $1.9bn of new equity that closed on October 1, 2020.
“Additionally, 55 out of our 56 properties have now reopened and operating results continue to improve sequentially. Regional markets continued to outperform destination markets and we remain optimistic regarding an eventual recovery of travel and tourism in the US and especially in Las Vegas.”
He added: “After combining results of operations of Caesars Entertainment, Inc. for the three months ended September 30, 2020 with results of operations of Former Caesars for the period prior to the closing of the merger, including properties classified as discontinued operations but were not divested at the end of the period and eliminating results of operations for properties that have been divested, which we refer to as a same store basis, Caesars Entertainment, Inc. reported same store net revenues of $1.8bn, net loss of $1.1bn and adjusted EBITDA of $463m.
According to Reeg, in the firm’s Las Vegas segment, revenues declined 60% during the third quarter and adjusted EBITDA fell by 83%.
Five of Caesars’ nine properties in its Las Vegas segment were open during the entire third quarter. Bally’s Las Vegas reopened on July 23, Planet Hollywood reopened on October 8 and the Cromwell recently reopened on October 29. In its regional segment, same store revenues declined 39% and same store adjusted EBITDA dropped 11%.
He said: “Revenues for the reopened regional properties (excluding properties located in Atlantic City, Northern Nevada and New Orleans, which we consider destination locations, and Lake Charles due to a weather related closure) decreased 11% and adjusted EBITDA increased 10% with margins expanding over 700 basis points.”