Caesars' Q1 Gross Gaming Revenue Declines 3.1% Despite Digital Growth

Caesars' earnings from games fell by 3.1% in the first quarter, even though their online gaming business saw an increase.

Caesars Entertainment made less money from gambling this year, earning $54 million less than the $2.83 billion from last year, a drop of 3.1%. Although their online business made 18.5% more money, it wasn’t enough to make up for the lower profits in the main parts of the company like the casinos, restaurants, hotels, and other areas.

Key Figures

• Adjusted revenue down to $2.77 billion, with a 1.2% drop unadjusted for Rio All-Suite & Casino's figures.
• Las Vegas revenue fell 9.1% on an adjusted basis; without Rio adjustments, it was 4.5% down.
• Regional revenue affected by poor weather, seeing a 1.7% year-on-year decline.
• Digital segment up 18.5%, driven by online sports betting and casino.

Casino Segment Takes a Hit

Caesars makes most of its money from its casinos, bringing in $1.54 billion this quarter, but that's a 3.2% drop from last year. In Las Vegas, they didn't make as much money from games like blackjack and roulette as they usually do. Also, bad weather in several places led to a 1.7% loss in what they earned.

Digital Sector Shows Promise

Caesars' Digital branch did well, earning $282 million, which is 18.5% more than the previous year. Two areas did particularly well: online sports betting increased by 23.0% and internet casino games went up by 54.0%. This growth was helped by starting online betting in North Carolina, even though it initially cost money to set up. The company is looking forward to growing more in this area and plans to start similar services in other places.

The CEO spoke about the company's performance over the last three months.

Tom Reeg, the boss of Caesars Entertainment, says the company lost money because of less money won in Las Vegas, bad weather, and costs from starting digital services in North Carolina. Even though the first quarter earnings weren't good, he's hopeful for the rest of the year. He mentioned that many rooms are booked and expects other parts of the business to do better, which makes him think the year will turn out okay despite the underwhelming start.

Financial Detail Breakdown

Caesars' operating costs increased by 1.4% to $2.26 billion. Their loss before tax was down to $127 million, which is an improvement from $185 million the previous year. However, they had a net loss of $158 million because they had to pay taxes this year, unlike last year when they got a tax benefit, and there were also losses from parts of the business they don't fully own. The profit they make from their regular operations before interest, taxes, depreciation, and amortization was also lower by 9.9%, at $853 million.

New and Upcoming Technology Releases

Caesars is working on improving its online presence. They've updated the Caesars Palace Online Casino to make it easier to use, and they've started offering a way to place sports bets on phones in Mississippi. The company believes that focusing on online services and betting will help them earn more money in the long run, even if it might be costly at the beginning when they enter new markets.

Caesars had a difficult quarter, but the company is preparing for better performance in the upcoming quarters. It plans to focus on online projects to help it grow and improve.