Caesars Releases Q1 Figures, Reports Profit is Back on Track

Due to mandatory property closures during March, Caesars Entertainment’s financial figures for the first quarter of 2020 have not met the original expectation, the company report says.

However, the brand has reported a $123 million in comprehensive profit for this period, despite the annual decline in revenue due to the said closures which came as a result of a global health crisis.

Mixed Results

For the three months through to March 31st…

…Caesars Entertainment’s net revenue totaled $1.83 billion, which was down from $2.12 billion in the same period last year.

The corporation has reported that the business generally performed well in January and February when revenue rose 12% year-on-year due to Indiana and Las Vegas growth.

March revenue, however, was half the previous year’s due to casino closures in the US.

Staff Furloughed

In order to mitigate the impact of these closures, Caesars Entertainment has said that they will furlough 90% of its staff. This applies to the US properties and corporate staff. The company announced a new assistance fund to the employees and local communities that were hit by the outbreak.

Las Vegas’ revenue fell 13.9%, from $955 million to $882 million. US revenue in general declined by 13.5%, to $874 million.

In total, Caesars’ casino revenue declined 12% to $958 million, their food and beverage revenue fell 17.1% to $330 million, rooms revenue fell 17.9% to $317 million.

Preparing For Reopening

During the first quarter, operating expenses rose 1 percent to $1.89 billion. Costs were down 3.5%, but property, general istrative and other expenditures climbed 6.1% to #448 million.

Tony Rodio, CEO of this famous gambling enterprise, commented on the figures from the first quarters and general performance:

“While we posted our best operating performance since 2008 in the first two months of the quarter, circumstances changed dramatically in March as we temporarily shut-down all of our casino properties, consistent with directives from various governmental and tribal bodies,” Rodio said.

Our first quarter performance reflects the significant revenue declines we experienced as a result of the closures and stable year over year labour costs in March as we continued to provide pay and benefits to our team for the first two weeks of the closure period.

We are taking steps to prepare for reopening, when appropriate, with the health and safety of our employees and guests in mind.”

Source:

“Caesars Entertainment Reports Financial Results for The Quarter of 2020”, investor.caesars, May 11, 2020.