Caesars CEO hints at Q1 recovery as COVID vaccinations gather pace

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Caesars Entertainment Inc has reported an improved performance in its Q1 update this week versus the last quarter of 2020, albeit against a backdrop of continuing net losses year-on-year.

The firm cited net revenues of $1.7bn, an increase of 259.2% on a GAAP basis and a decrease of 16% on a same-store basis versus Q1 2020, while recording a net loss of $423m compared with a net loss of $176m year-on-year. Same-store adjusted EBITDA came in at $548m versus $410m for the comparable prior-year period.

CEO Tom Reeg explained: “Our first quarter results improved significantly versus the fourth quarter of 2020 as the pace of vaccinations across the country accelerated and consumers started to resume more normal behavior. We are excited to see the dramatic improvement in operating efficiencies throughout our enterprise which we believe are sustainable going forward.”

After combining the results from continuing operations with those of discontinued operations, Caesars reported same store net revenues of $1.9bn and adjusted EBITDA of $548m.

For Q1 2020, a comparative same-store basis includes the results of operations of Caesars Entertainment Inc combined with the operations of Caesars Entertainment Corporation prior to the closing of the acquisition of Former Caesars and eliminates results of operations for properties that have been divested. 

In its Las Vegas segment, same store revenues declined 39.5% during the first quarter and adjusted EBITDA declined 26.7%. In the firm’s Regional segment, same store revenues were flat and same-store adjusted EBITDA increased 69.2%.