Caesars Entertainment posted revenue and adjusted EBITDA growth in Q1 of FY2022 but net losses grew by 52.5% after large digital losses in the quarter.
Publishing its First Quarter Results, Caesars reported net revenues of $2.3bn, up 20.9% YoY from 2021’s $1.8bn. This growth largely came from the Las Vegas division, which saw the return of patrons to land-based gaming. CEO Tom Reeg noted that despite the challenges that the omicron variant posed, the group saw many cancellations begin to rebook, with occupancy reaching 91% throughout March.
Regional revenues grew by 13.5% up to $1.36bn as demand increased throughout the quarter, whilst Caesars Digital revenues stood at ($52m) as the group focused on customer acquisition, particularly in new markets such as New York and Louisiana.
The digital arm also sustained heavy losses as a result of the customer acquisition strategy, picking up $576m of the total $680m of losses during the quarter. The Las Vegas division accrued net income of $168m compared to a $67m loss in the first quarter of 2021, whilst the regional division also noted net income increases of 153.1%, up to $124m.
Caesars’ Adjusted EBITDA reduced by 43.2% in Q1 to $296m, attributable to heavy losses sustained by the digital division. The Las Vegas division had an adjusted EBITDA of $400m, up 146.9% YoY whilst regional adjusted EBITDA stood at $459m, up 18.6% YoY.
CEO Tom Reeg commented: “Our first-quarter operating results reflect sequential improvement each month of the quarter in revenues and EBITDA. Our Las Vegas segment posted an all-time first-quarter EBITDA record, and our regional segment delivered solid EBITDA and margin growth. Consumer trends remain healthy and we are optimistic for the balance of the year.
“If you look at the quarter, we lost about $44m in March. So as you got out of that heavy launch period, our losses moderated considerably. And if you look at what we’ve done to date, in about two-thirds of our cumulative EBITDA loss, our investment into digital measured in that way is now in the rearview mirror.”
