Caesars Entertainment Q2 2024 Financial Report Overview

Caesars Entertainment (NASDAQ: CZR), a renowned casino-entertainment company founded in 1937 in the United States, has long been a dominant force in the gaming and hospitality industry. Over the years, the company has expanded its portfolio through strategic acquisitions, including Circus Reno in 2015, Lady Luck Casinos in 2017, and Grand Victoria Casino and Tropicana Entertainment in 2018. Today, Caesars operates its resorts under well-known brand names such as Caesars, Harrah’s, Horseshoe, and Eldorado, offering a range of amenities, including gaming, entertainment, hospitality, mobile and online gaming, and sports betting.

Financial Highlights

In Q2 FY2024, Caesars Entertainment reported Net Revenue of $2,830 million, a slight decrease of 1.70% compared to $2,879 million in Q2 FY2023. However, this represented a 3.21% increase from the $2,742 million recorded in Q1 FY2024. 

The Net Revenue structure for Q2 FY2024 is as follows:

• Casino Segment: 55.02%, contributing $1,557 million.
• Hotel Segment: 18.16%, contributing $514 million.
• Food and Beverage: 15.37%, contributing $435 million.
• Other: 11.45%, contributing $324 million.

This diversified revenue stream underscores Caesars’ ability to generate income from various sources within its extensive portfolio.

Q2FY24 Highlights

• Net loss attributable to Caesars of 122 million USD, compared to net income of 920 million USD in Q2FY23;
• Caesar Digital Net Revenue of 276 million USD, an increase of 27.78%, compared to 216 million USD in Q2FY23;
• Las Vegas Net Revenue of 1,101 million USD, a decrease of 2.39%, compared to 1,128 million USD in Q2FY23;
• Regional Net Revenue of 1,385 million USD, a decrease of 5.20%, compared to 1,461 million USD in Q2FY23;
• Same-store Adjusted EBITDA of 1,000 million USD, a decrease of 0.70% compared to 1,007 million USD in Q2FY23;
• Caesars Digital Adjusted EBITDA of 40 million USD, an increase of 263.64% compared to 11 million USD in Q2FY23.

As of June 30, 2024, Caesars Entertainment had approximately 216 million shares outstanding. During Q2 FY2024, the company’s shares traded on NASDAQ within a range of $31.74 to $44.67. The stock opened at $44.00 on April 1, 2024, and closed at $39.74 on June 28, 2024. Notably, the company does not pay dividends, focusing instead on reinvestment and growth.

Strategic Acquisition

A key development in Q2 FY2024 was Caesars’ completion of the acquisition of WynnBET’s Michigan iGaming business on June 18, 2024. This strategic move aligns with Caesars’ focus on expanding its digital gaming footprint, particularly in the growing iGaming and sports betting markets.

Caesars Entertainment continues to maintain its position as a leader in the gaming and hospitality industry, supported by a robust portfolio of brands and strategic acquisitions. Despite facing a slight decline in Net Revenue year-over-year, the company has demonstrated resilience through its diversified revenue streams and strategic initiatives. The acquisition of WynnBET’s Michigan iGaming business further strengthens Caesars’ presence in the digital gaming space, positioning the company for future growth in this rapidly evolving sector.