Caesars Entertainment’s First Quarter Results Disappoint Market Expectations Despite Record Occupancy and Increased Visitors

Caesars Entertainment fell short of market expectations for its first-quarter results, with record levels of occupancy driven by the Super Bowl and visits for the Chinese New Year being offset by low table hold in its Las Vegas segment. This led to a 3% drop in shares during extended trading.

Despite a surge in visitors to Las Vegas due to the Super Bowl, Caesars reported a decrease in its non-gaming segments like dining and retail, as well as its gaming operations. CEO Tom Reeg noted that Caesars Digital experienced strong revenue growth, but online sports were impacted by unfavorable outcomes for major events like the Super Bowl and March Madness.

Caesars Entertainment has seen a shift in consumer spending towards services, which has benefited the company’s properties like Caesars Atlantic City and Caesars Palace. However, profits from its U.S. properties, including those in Las Vegas, have declined due to increased expenses related to food and beverage, as well as hotel operations. Regional segment sales were also affected by unfavorable winter weather conditions during the first two months of the year.

Caesars Entertainment reported a loss of $0.73 per share, compared to analysts’ expectations of a per share loss of $0.07. Revenue for the quarter ended December 31 was $2.74 billion, falling short of the expected $2.84 billion according to LSEG data.

In conclusion, while Caesars Entertainment saw an increase in visitors due to major events such as the Super Bowl and Chinese New Year celebrations, it still fell short of market expectations for its first-quarter results due to decreased table hold in Las Vegas and lower revenue from non-gaming segments like dining and retail. Despite this setback, CEO Tom Reeg has highlighted that there are opportunities for growth in Caesars Digital’s online sports business and other areas such as food and beverage offerings at their properties across the US region.

Overall, investors will need to keep an eye on these factors moving forward when evaluating Caesars Entertainment’s financial performance going forward.