During the company’s Q4 earnings call Wednesday, Caesars Entertainment brass lauded the success of the digital division as one of the primary drivers behind a successful quarter.
Net revenues for the overall company amounted to $2.83 billion, which was flat year-over-year. Net losses were halved from 2022 from $148 million to $72 million.
On the digital front, Caesars Digital posted positive EBITDA of $29 million for the quarter compared to $5 million in losses last year. Across the year, Caesars Digital generated $38 million in adjusted EBITDA, a far cry from the $666 million in losses the division posted in 2022.
“Igaming growth accelerated throughout the quarter and delivered over 50% growth in volume led by Caesars Palace Online Casino, which contributed to our first quarter of $100 million in GGR for the segments for the full year of 2023. Our digital segment achieved 78% net revenue growth to $973 million, a new annual record, and $38 million of full-year adjusted EBITDA, also an annual record,” said Caesars Digital CEO Eric Hession during the earnings call.
Sportsbook revenues were a big piece of the puzzle for the digital division, but Hession spent most of his discussion focusing on the growth the division experienced on the igaming side. He was particularly keen to emphasize the launch of Caesars Palace Casino, a standalone online casino product, that rolled out last year.
“We’re pleased that the new product and brand resonate much better with our Caesars Rewards database than our casinos associated with the sportsbook. Igaming remains a critical component of our digital growth strategy for 2024 and beyond in support of that strategy.”
Looking ahead, Hession also spoke about the news that Caesars had acquired Wynn’s online casino product and access in Michigan. He reiterated what the press release noted, which is that the company plans to roll out another major brand of online casino. Hession elaborated on that plan but did not divulge which casino brand the group would be introducing.
“A company like ours that has multiple well-known brands, we thought it’s only logical to have a second offering for those customers. In terms of the brand building, it’ll be a very well-known brand to everybody. So we’re not going to spend a huge amount of money, marketing the brand. What we’ll spend money on is acquisition.”
