Caesars Entertainment’s Q1 Revenue Increases as Digital Division Reaches Record Levels

(AsiaGameHub) –   Caesars Entertainment posted a 2.7% year-over-year increase in first-quarter revenue, bolstered by record results in its digital segment, which helped counterbalance mixed outcomes in Las Vegas and regional businesses.

For the quarter ended March 31, Group Revenue totaled $2.87 billion, an increase of $0.08 billion from the prior year. Adjusted Group EBITDA grew by 0.3% to $887 million.

The Digital Division was the standout performer, with revenue rising 11.6% to $374 million compared to the previous year. Digital EBITDA stood at $69 million, and margins expanded to 18.4%.

CEO Tom Reeg pointed to the company’s land-based customer base as a key factor, stating:

The bulk of our customer acquisition comes from our Caesars Rewards database. We’re not swimming in those same pools where prediction markets are making acquisition costs higher. There’s still a gigantic opportunity in converting customers in our database… that play digitally elsewhere.

The company also saw average revenue per user rise by 15% and hold increase to 8.3%, owing to a higher share of parlays and multi-leg bets versus prior years. Continuous product improvements, including the deployment of a universal wallet and the creation of in-house games, also helped drive higher user engagement.

Caesars’ Regional Division brought in $1.43 billion in revenue, up 3% from the previous year, but profitability declined due to tougher year-over-year comparisons, such as the lack of a Super Bowl in New Orleans.

Las Vegas revenue was flat relative to the prior year; however, adjusted EBITDAR was slightly below the previous year’s $426 million. The company noted robust demand for group business and conventions, which pushed Las Vegas occupancy to 95.3%, while leisure travel dropped.

Operating Expense remained generally steady at $2.37 billion. After accounting for extra costs, Caesars incurred a pre-tax loss of $71 million and a net loss of $83 million, both narrower than the previous year. Including non-controlling interests, the Company recorded a total net loss of $98 million, a decrease from $115 million last year.