Caesars Entertainment(US:CZR)2024-07-30 20:39Financial 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].