October 3, 2024 - Caesars Entertainment (CZR, Financial), the parent company of iconic casinos like Caesar Palace, Harrah's, revealed a $500 million stock repurchase plan to buy back its own shares and issued a $1 billion bond offering. The money from the debt sale is said to be used to pay off older debt, freeing up cash for the repurchase, and potentially improving their overall financial health. Improvement in financial health is important for Caesar Palace's overall performance. According to GuruFocus, ...

Sen. Richard Blumenthal (D-CT) (L) and Rep. Paul Tonko (D-NY) hold a news conference to introduce online gambling legislation outside the U.S. Capitol on September 12, 2024 in Washington, DC. Sports gambling has exploded across the United States over the past six years and, in response, two lawmakers have introduced legislation that would implement federal regulations on the practice. Rep. Paul Tonko D-N.Y. and Sen. Richard Blumenthal, D-Conn., on Thursday introduced the Supporting Affordability and Fairnes ...

It has been about a month since the last earnings report for Caesars Entertainment (CZR) . Shares have lost about 7.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Caesars Entertainment Q2 E ...

Caesars' petition for new hearing before the high court is denied in case centering on deal to bring new multimillion-dollar gaming technologies to market LAS VEGAS, Aug. 6, 2024 /PRNewswire/ -- The Nevada Supreme Court has denied a request from Caesars Entertainment to reconsider a case involving Tipping Point Gaming (TPG). TPG had been working closely with Caesars Entertainment (NASDAQ: CZR) to bring new gaming technology to market. Caesars now faces a new trial on fraud claims, amongst other tort claims, ...

Cash flow continues to be strong on the Las Vegas Strip. Caesars Entertainment (CZR -6.28%) is an icon of the Las Vegas Strip, but it hasn't always been the best performer on the stock market. That's changing with more stable operations and solid cash flow. Travis Hoium highlights recent results and asks when the company will buy back stock. *Stock prices used were end-of-day prices of July 31, 2024. The video was published on July 31, 2024. ...

Caesars Entertainment, Inc. (CZR) reported second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. Also, the top and the bottom line declined on a year-over-year basis. Following the results, the diversified gaming and hospitality company's shares increased 3.8% in the aftermarket trading session on Jul 30, 2024. Earnings & Revenue Discussion Net revenues during the quarter were $2.83 billion, missing the consensus estimate of $2.86 billion by 0.9%. In the ...

Financial Data and Key Metrics - Consolidated net revenues for Q2 2024 were $2.8 billion, flat year-over-year, with total adjusted EBITDAR of $1 billion, also flat compared to the prior year [31] - Las Vegas segment delivered a same-store net revenue record of $1.1 billion, with adjusted EBITDAR margins of 46.6%, down only 40 basis points year-over-year despite labor cost increases [9][31] - Regional segment adjusted EBITDAR was $469 million, down 8% year-over-year, driven by competitive pressures, construction disruptions, and a difficult comparison in Reno [33] - Caesars Digital segment net revenues grew 28% year-over-year to $276 million, with a record adjusted EBITDA of $40 million, up from $11 million in the prior year [11] Business Line Performance - Las Vegas EBITDAR margins remained strong at 46.6%, with continued growth in hotel cash revenue due to higher occupancy and ADRs, as well as record food and beverage performance [8][9] - Regional segment faced headwinds from construction disruptions in New Orleans and a significant decline in bowling group bookings in Reno, which cost over $25 million in EBITDA [15][39] - Caesars Digital segment saw a 50% growth in iGaming net revenues for the second consecutive quarter, driven by a 33% increase in volume and a 30 basis point improvement in hold [12] Market Performance - Las Vegas market showed resilience with strong occupancy and pricing trends, supported by reduced room inventory on the Las Vegas Strip [9] - Regional markets experienced mixed results, with strong performance from newly opened properties in Danville and Nebraska, offset by competitive pressures and construction disruptions [10][33] - Sports betting segment net revenues increased 19% year-over-year, with flat handle and a 7.2% hold, up 80 basis points from the prior year [35] Strategic Direction and Industry Competition - The company is nearing the end of its elevated capital investment cycle, with CapEx expected to decrease by $200 million in 2025, leading to increased free cash flow [37][42] - Caesars Digital continues to expand, with the acquisition of ZeroFlucs and the upcoming launch of the Horseshoe iGaming app, aiming to build on the success of Caesars Palace Online [12][36] - The company remains focused on reducing debt and leverage, with plans to opportunistically lower the cost of debt and potentially buy back stock as free cash flow increases [14][19] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the Las Vegas market, expecting continued growth in the second half of 2024, driven by strong occupancy and pricing trends [40][81] - The regional segment is expected to face similar headwinds in Q3 but should see growth in Q4 with the completion of New Orleans construction and the opening of the Virginia property [16][57] - Caesars Digital is on track to meet its $500 million EBITDAR target, with strong momentum in iCasino and sports betting, supported by product innovation and customer engagement [18][63] Other Important Information - The company completed the acquisition of WynnBet's operations in Michigan, setting the stage for the launch of the Horseshoe iGaming app in early Q3 [36] - Recent room renovations at the Versailles Tower and Colosseum Tower are driving above-plan returns, with significant gains in cash ADRs [32] - The company expects to generate significant free cash flow as the CapEx cycle concludes, with plans to reduce debt and potentially return capital to shareholders [42][139] Q&A Session Summary Question: Impact of World Series of Poker on Las Vegas performance - The World Series of Poker was the company's best ever financially, filling rooms and driving ancillary benefits in hotel, table games, slot play, and food and beverage [27] Question: Sustainability of Las Vegas margins - Las Vegas margins remain strong despite labor cost increases, with the company able to offset $76 million in headwinds over the past two years [45] Question: Regional segment outlook for Q3 - Q3 regional performance is expected to be similar to Q2, with headwinds from New Orleans construction and Reno group declines, but growth is anticipated in Q4 [57][126] Question: Digital segment growth and profitability - Caesars Digital is on track to achieve $200 million in EBITDAR this year, with strong growth in iCasino and sports betting, supported by product innovation and customer engagement [63] Question: Impact of hotel supply changes on Las Vegas pricing - The company has seen strong pricing power in Las Vegas, with demand driving higher rates across rooms, restaurants, and other amenities [50] Question: M&A strategy and capital allocation - The company is focused on reducing debt and leverage, with potential for stock buybacks as free cash flow increases, but remains cautious about M&A opportunities given current stock price levels [55][139]

The reported revenue compares to the Zacks Consensus Estimate of $2.86 billion, representing a surprise of -0.95%. The company delivered an EPS surprise of -100.00%, with the consensus EPS estimate being $0.14. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Net Revenues- Las Vegas: $1.10 billion versus the six-analyst average estimate of $1.10 billion. The rep ...

Over the last four quarters, the company has surpassed consensus EPS estimates just once. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $2.99 billion in revenues for the coming quarter and -$0.23 on $11.54 billion in revenues for the current fiscal year. What's Next for Caesars Entertainment? This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that ...

Financial Performance - For the three months ended June 30, 2024, total net revenues were $2.83 billion, a decrease of 1.7% from $2.88 billion in the same period of 2023[156]. - Net income for Q2 2024 was a loss of $102 million, compared to a net income of $928 million in Q2 2023, reflecting a net income margin of -3.6%[156]. - Adjusted EBITDA for Q2 2024 was $1,000 million, a slight decrease of 0.7% from $1,007 million in Q2 2023[192]. - The company recorded a loss on early extinguishment of debt of $3 million for Q2 2024, with total losses of $51 million and $197 million for the six months ended June 30, 2024 and 2023, respectively[155]. - Operating cash inflows for the six months ended June 30, 2024, were $534 million, down from $953 million in the same period of 2023[196]. Segment Performance - Caesars Digital segment reported net revenues of $276 million for Q2 2024, up 28% from $216 million in Q2 2023[156]. - Adjusted EBITDA for the Las Vegas segment for the six months ended June 30, 2024, decreased by $91 million, or 8.7%, to $954 million compared to the same period in 2023[173]. - Casino revenues in the Las Vegas segment for the six months ended June 30, 2024, decreased by $87 million, or 14.0%, to $535 million compared to the same period in 2023[173]. - The Las Vegas segment's net revenues for the six months ended June 30, 2024, decreased by $130 million, or 5.8%, to $2,129 million compared to the same period in 2023[173]. - Caesars Digital reported strong revenue growth driven by improved sports betting hold and increases in both iGaming handle and iGaming hold[158]. Impairment and Charges - The company recognized impairment charges totaling $118 million for the three and six months ended June 30, 2024, due to decreased projected future cash flows at certain properties[155]. - The company recorded impairment charges of $118 million in June 2024 due to decreased projected future cash flows at certain properties[163]. - Regional segment net revenues declined due to inclement weather and increased competition, with impairments totaling $118 million recorded during the six months ended June 30, 2024[178][179]. Debt and Financing - The company refinanced $4.4 billion of debt during the six months ended June 30, 2024, including a new $425 million delayed draw term loan[155]. - As of June 30, 2024, long-term variable-rate borrowings totaled $6.1 billion, representing approximately 49% of consolidated long-term debt[223]. - The CEI Term Loan B-1 was incurred in February 2024 for $2.9 billion, maturing on February 6, 2031[197]. - Estimated debt service for the remainder of 2024 is approximately $510 million[208]. - The weighted average interest rates on variable and fixed rate debt were 8.00% and 6.70%, respectively, as of June 30, 2024[223]. Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2024, totaled $593 million, compared to $573 million in the same period of 2023[207]. - The company plans to invest approximately $800 million in capital expenditures for the remainder of 2024, excluding expenditures related to Caesars Virginia[207]. - The permanent facility of Caesars Virginia is expected to open in December 2024, with a budget of $650 million[204]. - Caesars Virginia, LLC secured a new five-year $425 million pro rata bank financing to fund remaining capital expenditures for the casino resort facility expected to open in December 2024[209]. Operational Metrics - Hotel occupancy in the Las Vegas segment improved to 98.7% for the three months ended June 30, 2024, compared to 97.6% in the same period in 2023[173]. - The company operates retail and online sports wagering across 32 jurisdictions in North America, with 26 offering online sports betting[144]. - The Caesars Racebook app was launched in 21 states as of June 30, 2024, providing access for pari-mutuel wagering at over 300 racetracks[144]. - Slot win percentage in the Las Vegas segment was within the typical range for the three and six months ended June 30, 2024[175]. Shareholder and Compliance - As of June 30, 2024, the company has repurchased 223,823 shares of common stock at an aggregate value of $9 million, averaging $40.80 per share[216]. - The company expects current liquidity and cash flows from operations to be sufficient to fund operations and capital requirements for the next twelve months[210]. - Compliance with all applicable financial covenants was maintained as of June 30, 2024[213]. - The company has not utilized any off-balance sheet arrangements as of the reporting date[221]. - There have been no material changes in critical accounting policies since December 31, 2023[220].