Caesars Entertainment Corp beat expectations in 1Q19, with net revenue up 7.3% and Adjusted EBITDAR growing 8.5% in a strong start to the year.
Net revenue climbed to US$2.12 billion for the three months to 31 March 2019, driven by increases at the company’s Las Vegas properties plus the recent acquisition of regional US gaming operator Centaur Holdings. The Las Vegas results were due to favorable hold, improved slot volumes and higher hotel revenues, Caesars said, with Las Vegas Average Daily Rate up 2.1% and occupancy rising from 92.5% in 1Q18 to 95.0%.
Income from operations saw a 92% increase to US$240 million, while Adjusted EBITDAR grew from US$518 million in the prior year period to US$562 million.
Despite those improvements, net loss attributable to Caesars climbed from US$183 million to US$217 million, “primarily due to a US$322 million change in the fair value of the derivative liability related to the conversion option of Caesars’ 5.00% convertible senior notes maturing in 2024 year over year.”
Caesars also failed to provide any great insight into what the future might hold during its 1Q19 earnings call – the first since billionaire investor Carl Icahn acquired a near 20% stake in the company and appointed Tony Rodio as CEO.
