Caesars Entertainment Reports Second Quarter 2023 Results

Caesars Entertainment has reported operating results for the second quarter ended June 30, 2023.

Second Quarter 2023 and Recent Highlights:

• GAAP net revenues of $2.9 billion versus $2.8 billion for the comparable prior-year period.
• GAAP net income of $920 million compared to net loss of $123 million for the comparable prior-year period, with the increase primarily driven by a release of $940 million of valuation allowance against deferred tax assets associated with REIT leases.
• Same-store Adjusted EBITDA of $1.0 billion versus $978 million for the comparable prior-year period.
  • Same-store Adjusted EBITDA, excluding Caesars Digital segment, of $996 million versus $1.0 billion for the comparable prior-year period.
  • Caesars Digital same-store Adjusted EBITDA of $11 million versus $(69) million for the comparable prior-year period.

Tom Reeg, CEO of Caesars Entertainment, said: “The second quarter of 2023 reflected continued strength in our business. Demand remains strong in both Las Vegas and our regional markets. Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings.”

Bret Yunker, Chief Financial Officer of Caesars Entertainment, said: “On July 17th we permanently repaid the $250.0 million Baltimore Term Loan, priced at SOFR plus 4.0%, due July 2024, following our acquisition of the remaining 24% equity ownership in the property. Total net leverage under our bank credit facility was 4.2x as of June 30, 2023, and we expect to continue reducing debt and leverage in the second half of 2023.”