{"id":271595,"date":"2023-05-02T20:59:19","date_gmt":"2023-05-03T01:59:19","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=271595"},"modified":"2023-05-03T14:17:47","modified_gmt":"2023-05-03T19:17:47","slug":"caesars-constructive-on-high-end-vegas-clientele","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/","title":{"rendered":"Caesars Q1 Earnings Disappoint, But CEO Tom Reeg Sounds Optimistic on Las Vegas"},"content":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) reported a wider-than-expected first-quarter loss. But the casino operator beat its topline projecting, and its chief executive officer told analysts Las Vegas remains sturdy.<\/p>\n

\"Caesars\"
Caesars CEO Tom Reeg in a 2021 CNBC<\/em> interview. He’s bullish on Las Vegas and high-end customers. (Image: CNBC<\/em>)<\/figcaption><\/figure>\n

The Harrah\u2019s operator posted a loss of 63 cents a share on revenue of $2.8 billion during the January through March period. Analysts expected a loss of 4 cents on sales of $2.76 billion. Caesars Digital, which includes the company\u2019s internet casino<\/a> and online sportsbook, posted quarterly revenue of $238 million.<\/p>\n

\n

On the Las Vegas Strip, where it\u2019s the second-largest operator, Caesars notched first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) of $544 million. Margins increased to 48% from 45% and occupancy surged to 95% from 83% a year earlier. Revenue at the company\u2019s extensive regional casino portfolio rose 2%. But EBITDA in that segment slipped 2%.<\/p>\n<\/div>\n

\u201cAs of March 31, 2023, Caesars had $13.2 billion in aggregate principal amount of debt outstanding. Total cash and cash equivalents were $965 million, excluding restricted cash of $258 million,\u201d according to a statement.<\/p>\n

Regarding Caesars Digital<\/a>, the gaming company said it will launch a standalone iCasino app in the third quarter. The operator added that its Nevada sports wagering app will more closely resemble the product customers in other states see by the start of the 2023 football season.<\/p>\n

Caesars Realizes Value in Customers<\/h2>\n

On a conference call with analysts, Caesars CEO Tom Reeg highlighted the transition of Strip operators catering to value-oriented consumers to higher-end segments \u2013 something Caesars is participating in.<\/p>\n

Reeg, who\u2019s never been shy about making culinary-inspired comments<\/a>, said the days of economical surf and turf dinners are relics of a bygone Las Vegas era.<\/p>\n

Now you’re talking about one of the best food and beverage scenes in the world, among the best sports and entertainment experiences in the world, and continually adding to that,\u201d he said on the call. \u201cWe are working to continue to add to that, MGM, Wynn, Sands, they’re all working to up-tier what we’re offering to customers.\u201d<\/p><\/blockquote>\n

The Caesars boss added that the NFL\u2019s Raiders, the November Formula 1 race, the resurgence in convention\/meeting business, and the potential addition of Major League Baseball (MLB) are positive catalysts for Sin City operators.<\/p>\n

\u201cYou\u2019re bringing in higher-value customers, and you\u2019re already full, so you\u2019re kicking out the lowest end,\u201d Reeg added. \u201cI see no reason that needs to — or would stop. This market has done a great job over the 30 years I\u2019ve been around gaming and continues to add reasons for people to come and add capacity.\u201d<\/p>\n

Caesars Debt, M&A Updates<\/h2>\n

As noted above, Caesars concluded the first quarter with $13.2 billion in outstanding liabilities. While that\u2019s one of the industry\u2019s heftier debt burdens, it\u2019s also a marked improvement from the year-earlier period.<\/p>\n

In response to an analyst\u2019s question regarding when the company could shift from reducing debt to repurchasing its shares, Reeg noted that\u2019s a possibility next year while adding debt reduction is part of the operator\u2019s capital return story.<\/p>\n

\n

As for Caesars\u2019 potential participation in gaming industry consolidation, Reeg told another analyst that the company currently has no assets for sale<\/a>, and that\u2019s unlikely to change over the near term. He noted the firm could change its mergers and acquisitions to be more aggressive from neutral.<\/p>\n<\/div>\n

\u201cI don’t think we’re very far from where we would see — where we would flip to maybe looking offensively there versus kind of neutral, maybe something shows up, maybe it doesn’t, but that would be in the calculus of what are you doing with your free cash flow as well,\u201d said the chief executive.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) reported a wider-than-expected first-quarter loss. But the casino operator beat its topline projecting, and its chief executive officer told analysts Las Vegas remains sturdy. The Harrah\u2019s operator posted a loss of 63 cents a share on revenue of $2.8 billion during the January through March period. Analysts expected a loss of […]<\/p>\n","protected":false},"author":46,"featured_media":220256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886],"tags":[81897,81903,23],"acf":[],"yoast_head":"\nCaesars Constructive On High End Vegas Clientele<\/title>\n<meta name=\"description\" content=\"Caesars benefiting from higher Las Vegas spending, narrowing digital losses.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Constructive On High End Vegas Clientele\" \/>\n<meta property=\"og:description\" content=\"Caesars benefiting from higher Las Vegas spending, narrowing digital losses.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-03T01:59:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-03T19:17:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1910\" \/>\n\t<meta property=\"og:image:height\" content=\"1074\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/\",\"name\":\"Caesars Constructive On High End Vegas Clientele\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"datePublished\":\"2023-05-03T01:59:19+00:00\",\"dateModified\":\"2023-05-03T19:17:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars benefiting from higher Las Vegas spending, narrowing digital losses.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-constructive-on-high-end-vegas-clientele\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/07\/reeg.jpg\",\"width\":1910,\"height\":1074,\"caption\":\"Caesars CEO Tom Reeg in a 2021 CNBC interview. 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